United Eyeing Nwa Stronghold

[C54Capt]

Hey Big Sky,

Looks like United is going for a 9th inning home-run in the Pacific kind of like when Babe Ruth pointed his bat at the outfield fence and predicted his homer. All the eggs will be in the asian basket so-to-speak. Their long term survival will depend on the success of this strategy.

What's NWA's plan? Will they treat UA's new international focus the same way FDR treated the Japanese attack on Pearl Harbor, or will they capitulate. I know if it were a money losing domestic route that was under attack, NW would pull out all the stops, it will be interesting to see what they do when routes of substance are at issue.

 

[TDR1502C]

NWA hasn't had its haircuts yet, and could probably out-bleed UAL.

 

[C54Capt]

If NWA approaches this challenge the way they have approached domestic challeges, they might not need to get the "hair cut". The ball is in NWA's court. UAL wants to kill NWA, don't let it happen boys.

 

[funguy2]

I kind of view UAL as the stronger Pacific competitor... Don't all NWAC services stop in Japan with one-stop or connecting service to HKG, ICN, TPE, and others, where UAL has similar (less connect opportunities) but more nonstops (i.e. China, Hong Kong) and stronger alliance ties (ANA, Air NZ, Thai, etc). I would think UAL would be building on its successful trans-pac network, not eyeing NWA's stronghold.

 

[North by Northwest]

"What's NWA's plan? Will they treat UA's new international focus the same way FDR treated the Japanese attack on Pearl Harbor, or will they capitulate. I know if it were a money losing domestic route that was under attack, NW would pull out all the stops, it will be interesting to see what they do when routes of substance are at issue." Doug Steenland makes Anderson look like a pussy cat. When NWA deploys it's strategy it's well devised and usually takes no prisoners. One might say Tokyo is as (if not MORE) important than MSP. I want a ring side for this one.

 

[Kev3188]

[b I want a ring side for this one.

[post="188920"][/post]​

Save me a seat....

 

[JFK777]

I can appreciate NWA fortress hubs in the Midwest, but Asia requires nonstops to cities beyond Japan. I can not believe NW doesn't have a west coast pacific hub and then NW praises it new A330-200 as a ground breaking Pacific jet. Sure A300-200 is better then the Dc-10-30, but any airplane would be.

A330-200 belongs from Dtw & MSP to Europe or Sao Paulo/ Buenos Aires, a move I would encourage by NWA to diversify geographically also recongnizing those two destinations in Latin America have become huge destinations from all parts of North America. NW should have new A340-500/600 or 777-300ER's to fly nonstop to HKG & BKK. The world as shown this year by SIA, Cathay & Emirates have come to expect flights lasting up to 18 hours. The airlines from Asia are NW's competition, it time NW rises to their full potenial.

 

[WorldTraveler]

I completely agree w/ JFK777's post. However, I don't think UA is likely to make much, if any dent, in NW's position. NW does need to immediately implement a strategy to grow their Asian operation beyond Japan.

 

[North by Northwest]

Frankly, no one from any major airline in America is qualified to suggest to NWA what is best for them (comparatively speaking). Northwest has been flying the Pacific longer than any airline on the planet...successfully. I do not believe United presents any threat whatsoever to NWA's market share.

 

[TDR1502C]

... NW should have new A340-500/600 or 777-300ER's to fly nonstop to HKG & BKK. The world as shown this year by SIA, Cathay & Emirates have come to expect flights lasting up to 18 hours. The airlines from Asia are NW's competition, it time NW rises to their full potenial.

[post="188953"][/post]​

I'm sure if you were to purchase the airplanes for NWA, they could follow your suggestions. By the way, which airline employs you as a fleet planner?

It's about time for the redtails to go into regular operating mode and clam up and not talk to strangers. There's been way too much posting in this forum over the past few months.

 

[Cosmo]

However, I don't think UA is likely to make much, if any dent, in NW's position.

I continue to be amazed when I see statements like the above quote. It simply has no basis in reality. By December, United will have added substantially more new Transpacific service in 2004 (not counting the relatively short Tag flights) than all of its other U.S. competitors combined, as the following list shows:

United
ORD-KIX (Daily)
SFO-PEK (Daily)
HNL-NRT (Daily - for a total of 2 Daily)
ORD-PVG (Daily)
LAX-SYD (3 x Week - for a total of 10 x Week)
HKG-SGN Tag (Daily)

Northwest
PDX-NRT (Daily)
NRT-CAN Tag (Daily)

American
LAX-NRT (Daily)

Continental
HNL-NGO (Daily)
EWR-HKG (1 x Week - for a total of 6 x Week)

Delta
**None**

United has also announced the start of SFO-NGO service in June 2005 and has applied for SFO-CAN service in the current China route case at DOT (although I frankly don't believe they will get that authority in the current route case).

IMHO, it's pretty clear that United is the airline that's most aggressively expanding its Transpacific operations at the expense of its U.S. competitors. So if Northwest hopes to be the biggest U.S. operator in the Transpacific market, it will need to emulate United's growing service pattern in the region.

 

[TDR1502C]

Or Northwest can start a massive ad campaign in overseas markets explaining how Northwest will honor all United tickets in case of United's possible operating difficulties due to upcoming bankruptcy proceedings.

After all, NWA is not known for playing well with the other kids in the playground.

I'd wouldn't be suprised to see NWA poach the UAL pacific employees. "Wanna future?"

 

[Fly]

That would probably prove to backfire. For one, Asian culture doesn't honor nor respect those who cause anyone to 'lose face'. Second, United need only respond with their own ad campaign explaining that United flys a newer fleet, supberb award winning inflight entertainment, and covers more cities in the states (getting them to the final destination quicker and easier).....and then add, why pay for their product when you can have United's when you have absolutely nothing to worry about since NW will guarantee your ticket anyway?

 

[TDR1502C]

That would probably prove to backfire. For one, Asian culture doesn't honor nor respect those who cause anyone to 'lose face'.

[post="189258"][/post]​

Seems like the horse has left the barn after filing for bankruptcy protection, which is not treated as casually overseas as in the states. Why not take advantage of cultural misunderstandings?

 

[WorldTraveler]

Take a deep breath, Cosmo. I have said at various times that I believe NW does need a longer haul medium capacity aircraft. I also have acknowledged United’s growth in the Pacific which I believe is critical to its turnaround. That doesn’t mean that United’s growth will come at Northwest’s expense. Since NW and UA only share a NRT hub and have different strengths at each of their US gateways to NRT, I doubt very seriously that NW and UA really compete for the same passengers over much of their Pacific anyway.

Further, the Asian market is GROWING. UA is wisely deploying its assets in such a way to capture that growth but it doesn’t mean that it will encroach on NW’s current market position or revenues.

And, by the way, United already flies more RPMs over the Pacific than NW does, a gap that will grow.

You can breathe now; your gray matter should be fully oxygenated.