FlyerTalk Forums - View Single Post - 2nd daily UA IAH-NRT? (UA back to 1 flight Jan-31-15, ANA Starting 77W in June 2015)
Old Jun 3, 14, 12:12 pm
Join Date: Feb 2008
Programs: 6 year GS, now MM Jeff-ugee, *wood LTPlt, VX Gold, SkyPeso PLT
Posts: 6,446
Originally Posted by cesco.g View Post
While the flight itself might be doing well, I am wondering if it actually adds to the overall US-NRT revenue, or just cannibalizes some other US-NRT routes.
Its not just revenue cannibalization that is at issue, but also CASM. If this flight cuts some flow to the ORD and SFO flights, or the LAX flight, it may make them more marginal (especially LAX, there is only so far that UAL can downgage).

But the big issue is CASM. SFO-NRT is 4447nm (5118sm), IAH-NRT is 5767nm (6637sm) The extra distance probably adds about $120 per passenger in fuel costs each way, and I bet the CASM is at last 20% higher. So having someone go xxx-IAH-NRT vs. xxx-SFO-NRT simply adds to United's costs, and hurts the bottom line unless they can get a greater increase in revenue, which I doubt they can.
spin88 is online now