United Boosts Asia Service Ahead Of Rival Flights

[Fly]

Updated: 02:44 PM EST
United Boosts Asia Service Ahead Of Rival Flights
By Elizabeth Souder, Of DOW JONES NEWSWIRES, Dow Jones

NEW YORK (Dow Jones)--UAL Corp.'s (UALAQ) United Airlines will beef up its service to Asia ahead of plans by rivals to begin flying to China.

United, which continues to restructure under bankruptcy protection, announced Wednesday it will add in April flights between Nagoya and Taipei, increase in May flights between Chicago and Hong Kong, and upgrade summer service between Chicago and Beijing to a larger airplane.

"Demand for passenger - both business and leisure - and cargo service to the region has significantly increased over the last few months," said Mark Schwab, vice president-Pacific, in a statement.

The announcement comes one day after the Department of Transportation said AMR Corp.'s (AMR) American Airlines and Continental Airlines Inc. (CAL) won permission to begin new flights directly to China next year and in 2007. Continental in 2006 will fly between Newark and Beijing, and American in 2007 will compete with United on Chicago-Beijing service.

Currently, United is the only U.S. airline with nonstop flights between the U.S. and China, operating flights from San Francisco and Chicago to Beijing and Shanghai.

Five years ago, United won approval to become one of only two U.S. carriers allowed to serve China directly. The other is Northwest Airlines Corp. (NWAC). Those carriers beat out American's pitch for service.

So last year, when the DOT asked for bids for new service, American tried again, first proposing flights between Chicago and Shanghai. United trumped the American plans by bidding on the same route when the DOT granted carriers with existing China service first dibs on more flights. Both airlines operate hubs in Chicago.

United's plans announced Wednesday involve upgrading service on the Chicago- Beijing route to a 347-seat Boeing 747 from a 253-seat Boeing 777 for the peak summer travel season.

The airline said its alliance with Chinese airline Air China Ltd. (0753.HK) has contributed to the popularity of that route.

As for flights between Chicago and Hong Kong, United said it will boost the amount of service earlier than planned. The airline moved up the start date for three new flights to May 6 from the original date of June 7.

- By Elizabeth Souder, Dow Jones Newswires; 201-938-4148; elizabeth.souder@ dowjones.com

Dow Jones Newswires 02-23-051424ET

 

[FWAAA]

Here's a link to the press release:

http://biz.yahoo.com/prnews/050223/cgw033_1.html

 

[JFK777]

Cal's Newark to Peking & AA's ORD to Shanghai service should not threaten UA's already dominate service to China from the Midwest and West Coast. UA already does SFO & ORD to both Chinesse cities. NW believes everything must stop in Tokyo and will always, so if you fly NW to China plan on having Sushi on the way. This reminds of the Us - UK market of the late 1970's when Pan Am and TWA where crying foul because Delta and Braniff started flying form Dallas and Atlanta to Gatwick. The market expanded and prospered, the old airlines are gone but not for any reasons about expanding international routes. China has enough room for every one.

 

[coolflyingfool]

Seeing as how UA needs more revenue, I think that the Asian expansion is a good thing. Just my thoughts.......

 

[johnny gearpin]

IMHO, the continued growth in China leads me to believe the AMFA/UAL contract change to Offshore HMV 747/777 (Article II F.) has to have plenty of political weight behind it. Foreign relations and landing rights. OK, maybe a small slice of the US/China relationship.

I believe UAL would sell anything and everything to gain China rights. It's where the money is right? Whatever UAL had to offer China in exchange for flights, I believe one sticky item is the promise to send AMTs' skilled work and jobs.

I want the Maintenance to stay within UAL, not Repair Stations, definitely not outside the USA. However, this may be one that cannot be undone.


Has anyone had any experience with landing rights and what is involoved?


Best regards,

Johnny Gearpin

 

[BigRed1]

"I want the Maintenance to stay within UAL, not Repair Stations, definitely not outside the USA."

I just returned from El Salvador yesterday. As we taxied out for takeoff, there to my right was a Jetblue A320 and a Continental B737 getting worked on at some cut rate offshore facility. I wanted to get on the PA and let the passengers know what is in store for them as these cheap whore airlines set the cost standard in the maintenance departments across the industry.

I feel for the state of my maintenance brothers having to see this unfolding before our eyes. Sad, Sad, Sad.

By the way, as we pulled up to the gate I counted 21 baggage handlers and support people waiting to unload our plane. They probably did it all for a fraction of the cost of the 4 or 5 folks working here in the states doing the same job. And they were extatic to have the job. Folks, this is the future of all our jobs in the USA.

Sorry, I am getting off on a tangent here, but I would guess that UAL is planning on servicing our widebody maintenance in China at some point in the future. As a pilot, I can speak for most of us when I say this makes us all very nervous and very frustrated.

 

[Fly]

I believe UAL would sell anything and everything to gain China rights. It's where the money is right? Whatever UAL had to offer China in exchange for flights, I believe one sticky item is the promise to send AMTs' skilled work and jobs.

[post="250505"][/post]​

What does that mean? UAL doesn't have to sell "anything and everything to gain China rights." They already fly there now. These aren't new routes for us. I was flying those once in awhile before 9/11. If the maintenance were being worked on in China, it would have already begun.

 

[UAL_TECH]

What does that mean? UAL doesn't have to sell "anything and everything to gain China rights." They already fly there now. These aren't new routes for us. I was flying those once in awhile before 9/11. If the maintenance were being worked on in China, it would have already begun.

[post="250622"][/post]​

The ‘only’ reason that we are not doing HMV’s in China is because off the clause in the M&R contract. The last proposal (voted down) would have allowed HMV’s on B777 and B747 to be performed at non U.S. locations. No doubt contracts are being lined up for HMV’s to be sent to overseas MRO’s after May 31st.

B) UT

 

[johnny gearpin]

Fly asks,

What does that mean? UAL doesn't have to sell "anything and everything to gain China rights."

I should rephrase by stating my opinion that UAL would do anything to cut a deal to gain more access to China. Anything including but not limited to outsourcing of UALs 747/777 HMVs.

Does anyone think China has a say regarding who flies into its country? UAL is providing jobs and China is opening the door more.

Best regards,

Johnny Gearpin

 

[peasant]

JAL, ANA, CX all have maintenance done in Xiamen, China. Boeing have a share in the facility (TAECO, a subsidiary of HAECO in HK) Good quality work, not exactly cut rate (40-50USD per hour)

CO get worked on by HAECO in HK

Not quite sure what you are all sad about. Why should the name on the front of your passport guarantee you so much more than some poor sod born in El Salvador? They are happy to get good jobs as you say

 

[BigRed1]

Good quality work, not exactly cut rate (40-50USD per hour)

Not quite sure what you are all sad about. Why should the name on the front of your passport guarantee you so much more than some poor sod born in El Salvador? They are happy to get good jobs as you say

What I am upset or "sad" about is that my united mechanics are losing their jobs to these offshore facilities. Give that "poor sod born in El Salvador" a job working for Taca Airlines, and not my American based, American born company. How many of our brothers would be able to live nicely on 40 dollars an hour as you quote. Hell, how about 25 dollars an hour plus some health insurance and a bit of retirement. Too much to ask? Guess so.

Cut rate? Ok, maybe a poor choice of words. Lower quality? Reduced oversight? Lack of accountablility? The odds favor the latter. Have you ever been there?

I gotta wonder. If Jetblue doesn't fly scheduled service to SAL, it has gotta cost a about 30,000 dollars in jet fuel and other costs (ie crew) from say, Southern California to Central America roundtrip. Maybe that is just a small drop in the bucket compared to the savings from the work performed. What do these checks cost and how long do they usually take?

Sorry, I am emotional about trying to protect a few jobs. I want my United mechanics working on my airplane.

 

[mweiss]

Sorry, I am emotional about trying to protect a few jobs.

[post="250711"][/post]​

Fine. Then don't pretend that it's about safety. Be honest.

 

[peasant]

Xiamen? Yes, I've been there. Good seafood. And, no, you aren't protecting jobs as such. You are protecting who gets the jobs. Same amount of work needs to be done whether it is done in Arkansas, Thailand or Venezuala

I happen to work for a Chinese airline, (CX) so I want my CX mechanics working on my aircraft too - just like you and your UA mechanics. But we do it (provide international transportation) better and cheaper than UA, so most passenger surveys say, and that is competition

FWIW, I think that our cockpit crew salaries are probably higher than UA's now, so it isn't on the back of cheap labour either. Mostly Aussies, Brits, Chinese, Kiwis, S Africans, Canadians, some Americans, but also Zimbabweans, Germans, Spanish, Indonesians. We hire from around the world, without prejudice on nationality, just quality.

Where I do disagree with you (I think) is that I think that my colleagues in CX are all working together, what ever nationality or where based, to do the best job. Without us thinking Hong Kong born people somehow "deserve" jobs because CX is a HK born company. Obviously we have majority of HK staff, but that is because it is the base, like AA has majority of staff in DFW, because it is their base.

We do our IT in Australia, D checks in Xiamen, B,C checks & Rolls engine overhaul in HK, CFM56 engine overhaul in Switzerland, many A checks in Heathrow, accounting in Guangzhou, GDS queue handling in India, N American reservations in Canada, but they are all CX staff and my colleagues.

Not much done in the US, because for labour intensive industry (like airlines) it doesn't make much sense. To generalise, normally you can find lower costs in Asia, or higher quality in Europe & Japan. And that is a problem for USA as a whole, not just UA, as the huge trade deficit shows.

 

[mrfish3726]

Bigred1 says"I wanted to get on the PA and let the passengers know what is in store for them as these cheap whore airlines set the cost standard in the maintenance departments across the industry."

Isn't UniTED becoming one of those WHORE airlines your talking about on here??? Not much C-CK or HMV work done in house at UniTED anymore either, kind of like the pot calling the kettle black isn't it? AMAZING!!!!!

 

[magsau]

Fish,

How is that computer transition going over there at F9? Did you leave your "moneky" wrench in a place it should not have been?