UAL - JFK/HKG service lasts just 5 months
United Airlines Corp said on Wednesday it is ending its Hong Kong-New York service from August 30, blaming weak demand and regulatory issues.
"The non-stop HKG-JFK flight has been discontinued due to poor booking levels. The company does not anticipate improvement, which is why this step has been taken," the company said in a faxed response to Reuters questions.
The service was launched on April 1.
The last flight would operate on August 30, two days before Hong Kong carrier Cathay Pacific Airways Ltd launches its new Hong Kong-New York service on September 1.
United said regulatory problems in Hong Kong prevented United from working with alliance partners and from continuing flights beyond Hong Kong to other Asian destinations, contributing to the poor performance of the Hong Kong-New York route.
"United is unable to engage in third country code-sharing and to operate liberal fifth freedom rights," it said. So-called fifth freedom rights allow an airline to extend flights beyond its original destination country.
These restrictions, combined with a significant decline in the economic climate, had made the service unsustainable, it said. Service to New York would continue through its other gateways: Chicago, San Francisco, Los Angeles and Tokyo.
Cathay shrugged off the news that United had found it difficult to make the route pay. It said it was still "very committed" to the new service, which complements an existing daily Hong Kong-Vancouver-New York service.
"This is going to be a popular service," a Cathay spokeswoman said, declining to comment directly on United's decision to stop its service just before Cathay launched its new service.
Cathay said last month the new non-stop service would operate over the North Polar region, saving more than two hours flight time each way, and would be operated with an Airbus Industrie A340-300 aircraft, which can carry 193 passengers.
The only other airline operating a direct Hong Kong-New York service is Continental Airlines. Continental launched its service in early March."