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Announcement: UA adds IAD-NRT, drops JFK-LHR/NRT, reumes SFO-TPE, adds more SFO-HKG

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Announcement: UA adds IAD-NRT, drops JFK-LHR/NRT, reumes SFO-TPE, adds more SFO-HKG

 
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Old Jul 28, 2006, 9:00 am
  #46  
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Well, add me to the list of people that thinks this is a good move by UA. Of course, I live in Chicago so it's easy for me to say that

Seriously though, the NYC-LON route is just too competitive - especially now with MaxJet and the like. UA is simply going after the lower hanging fruit - can't really blame them for that strategy.
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Old Jul 28, 2006, 9:00 am
  #47  
 
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Originally Posted by haddon90
NY is such a saturated market, i think it's a brilliant move. and do they have an additionaly LHR slot now? could we see DEN-LHR? UA has said that they want IAD to be the european hub, and they are succeeding. UA owns the washington area in terms of international destinations. right now UA has to make $$$, and if this is a way for them to make $$$ then i say go for it. ^ ^ for the IAD-NRT flight.
I was thinking DEN-LHR for that now-open slot as well. But, adding another flight from IAD or ORD makes sense, too, I suppose.
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Old Jul 28, 2006, 9:01 am
  #48  
 
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Originally Posted by ajamieson
Let me get this straight...Star Alliance will no longer have any flights between the UK and New York.

Wow.
Yes, and Japan and Australia. Hey, maybe NRT - TPE will become NRT - SYD .

Originally Posted by UnitedSkies
That pretty much sums it up - what kind of revenue can you get in a market that is dominated by no fewer than 13-15 daily nonstop flights by a rival alliance (AA/BA in oneworld)? At the end of the day it has to be the quality of revenue you get. If most NY based corporate customers are going to go for frequency over alliance loyalty (which they almost always do), the once a day JFK-LHR isn't going to cut it.
And the major US domestic player (CO) code shares with the final authority in the Bermuda II treaty - VS.

Originally Posted by UnitedSkies
Ever wonder why AA only has one 763 to FRA from ORD?
UA probably would've been more successful with JFK - FRA. LH would've been able to funnel enough traffic onto that bird and would've had the decency to code share. Yes, even with SQ already flying JFK - FRA.
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Old Jul 28, 2006, 9:02 am
  #49  
 
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Originally Posted by SFO_Runner
And if the anticipated Open Skies agreement between the US and EU gets signed fairly soon:

1) DL has just paid a few million for route authority they would have gotten for free via Open Skies treaty.
2) In the meantime, UA gets cash from DL.
3) If UA feels the need, post Open Skies approval to re-start NYC - LON, they have the right to do so via the treaty - for free.
4) It can be said this is a mis-step by DL if the net profit from flights on this route do not outweigh the purchase cost (well, opportunity cost) by the time a would-be US - EU Open Skies treaty comes into play.

In the meantime, as you say, UA have got an LHR landing and departure slot...
You don't think the lawyers thought of this first? I bet they have a 5 year no compete clause.
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Old Jul 28, 2006, 9:03 am
  #50  
 
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Originally Posted by ajamieson
Let me get this straight...Star Alliance will no longer have any flights between the UK and New York.

Wow.
Amazing, isn't it? And here I've long thought that *A is the premier airline network, yet there is no *A presence on the #1 transatlantic route.
Incredible.
Those SQ "continuation" flights are only JFK-FRA, not JFK-LHR, correct?
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Old Jul 28, 2006, 9:03 am
  #51  
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United's reinstatement of its service between San Francisco and Taipei, which will be on a Boeing 747, begins on April 1, 2007, and includes the
following schedule:

Departs Arrives
UA 871 SFO-TPE 1:01 p.m. 5:20 p.m. (next day) Daily
UA 872 TPE-SFO 12:20 p.m. 8:24 a.m. (same day) Daily
The more I look at SFO-TPE's start date, the more I think about SFO-NRT-CAN press release UA issued a while back about initially starting the CAN flight out of NRT initially and turn it into a direct SFO-CAN flight later. It looks like NRT-TPE will be discountinued next spring.
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Old Jul 28, 2006, 9:07 am
  #52  
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Originally Posted by flyinryan
Amazing, isn't it? And here I've long thought that *A is the premier airline network, yet there is no *A presence on the #1 transatlantic route.
Incredible.
Those SQ "continuation" flights are only JFK-FRA, not JFK-LHR, correct?
At some point, sustaining loss-making routes doesn't make sense just to have a presence.
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Old Jul 28, 2006, 9:08 am
  #53  
 
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Originally Posted by BDLORD
You don't think the lawyers thought of this first? I bet they have a 5 year no compete clause.
I would think a federal mandate / law would pre-empt any private agreement between two parties.
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Old Jul 28, 2006, 9:09 am
  #54  
 
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Originally Posted by UnitedSkies
That pretty much sums it up - what kind of revenue can you get in a market that is dominated by no fewer than 13-15 daily nonstop flights by a rival alliance (AA/BA in oneworld)? At the end of the day it has to be the quality of revenue you get. If most NY based corporate customers are going to go for frequency over alliance loyalty (which they almost always do), the once a day JFK-LHR isn't going to cut it.

Ever wonder why AA only has one 763 to FRA from ORD?

I understand the impact this will have on some customers in the NY area, but I think UA has to do what makes most sense for it from a network perspective. UA needs to be maximizing its resources, and if IAD-NRT does better than JFK-NRT, it's a no-brainer. I wonder how many people here complained about the loss of JFK-HKG as well? Same principle, different routes.
So should I fax over my statements to AA for a comp to Plat.?
With over 80,000 miles on UA this year and with those double eqm promos I am a shoe in for 1K.
I still think they can fill that plane (JFK-LHR) most of the year. But the folks at WHQ aren't the brightest bulbs on the tree. I see that as soon as all those stock options mature they jump like rats off a sinking ship. I also heard a rumor from a pilot that this merger with Continental is being pushed hard so the options become vested sooner.
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Old Jul 28, 2006, 9:09 am
  #55  
 
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Originally Posted by flyinryan
I was thinking DEN-LHR for that now-open slot as well. But, adding another flight from IAD or ORD makes sense, too, I suppose.
there are a lot of flights from IAD-LHR on VS, UA, and BA. i think DEN would be ideal. direct competition to BA, and DEN is UA's hub.
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Old Jul 28, 2006, 9:11 am
  #56  
 
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Originally Posted by UnitedSkies
At some point, sustaining loss-making routes doesn't make sense just to have a presence.
I agree...I was trying to say that it's just amazing no *A carrier can make money on this route. I know there is a lot of competition, but there is also lots of competition on SFO/LAX-JFK, and United seems to be making money there. Apples to oranges, perhaps, but it's still about charging people for airplane seats.
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Old Jul 28, 2006, 9:14 am
  #57  
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Originally Posted by haddon90
NY is such a saturated market, i think it's a brilliant move. and do they have an additionaly LHR slot now? could we see DEN-LHR? UA has said that they want IAD to be the european hub, and they are succeeding. UA owns the washington area in terms of international destinations. right now UA has to make $$$, and if this is a way for them to make $$$ then i say go for it. ^ ^ for the IAD-NRT flight.
This pretty much sums it up. IAD is the new focus for United. Besides increasing international traffic through IAD, they are building up in preparation of Southwest arriving in October.

Now if UA would only move the p.s. flights out of JFK and into IAD...
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Old Jul 28, 2006, 9:17 am
  #58  
 
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Originally Posted by flyinryan
it's just amazing no *A carrier can make money on this route.
BD could, since it has no legacy costs or debt problems, but of course it is not allowed to under Bermuda II.

Thing is, United only has three competitors on that route: AA, BA and VS. And still US loses money on it!
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Old Jul 28, 2006, 9:17 am
  #59  
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Originally Posted by flyinryan
I was thinking DEN-LHR for that now-open slot as well. But, adding another flight from IAD or ORD makes sense, too, I suppose.
Under Bermuda II a US carrier can only fly from DEN to LGW. It makes little sense for UA to open up a new station for a single flight, though it would force BA to move their DEN flight to LGW as well.
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Old Jul 28, 2006, 9:18 am
  #60  
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Originally Posted by haddon90
there are a lot of flights from IAD-LHR on VS, UA, and BA. i think DEN would be ideal. direct competition to BA, and DEN is UA's hub.
Unfortunately, Bermuda II treaty does not allow DEN-LHR. The cities covered under the treaty are:

Baltimore, Boston, Chicago-ORD, Denver, Detroit, Los Angeles, Miami, New York-JFK, Newark-EWR, Philadelphia, Phoenix, San Francisco, Seattle, and Washington-Dulles.
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