United
I don't pretend to be an authority on the subject, but United's access to Heathrow is enshrined by the Bermuda II treaty. I'm not sure they could sell their rights to fly in and out of LHR to a third party without renegotiation of the treaty. But I could be wrong.
Andy_S
Didn't United get their LHR authority by buying it from Pan Am and American got their authority by taking over TWA? If so, as long as United move COMPLETELY out of LHR they could probably sell the rights to another US airline. I think Bermuda 2 limits LHR access to 2 US and 2 UK airlines but does not necessarily name which ones.
Didn't United get their LHR authority by buying it from Pan Am and American got their authority by taking over TWA? If so, as long as United move COMPLETELY out of LHR they could probably sell the rights to another US airline. I think Bermuda 2 limits LHR access to 2 US and 2 UK airlines but does not necessarily name which ones.
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That would be AC's YYT-LHR with 319s beginning Apr07 (previous 767 routing YHZ-YYT-LHR now YHZ-LHR I believe.)
http://www.cbc.ca/canada/newfoundlan...ir-canada.html
http://www.cbc.ca/canada/newfoundlan...ir-canada.html
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I really don't see this happening. United's LHR slots are one of the jewels in their crown, alongside their Pacific routes, and I cannot see UA trading them to move all of their operations to LGW. United have substantial infrastructure at LHR - with their own handling staff & crew base, as well as benefiting from the Star Alliance hub with connections from bmi - which they would not be able to simply pick up at LGW.
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United sold the NYC-LON route authority to Delta.
United still kept the LHR slot, which they then leased (I think for 3 years) to Air Canada. Thus they can resume use of the slot from another city in the future as business dictates.
Delta can not fly to LHR due to the Bermuda 2 agreement, so they'll fly to LGW. Delta has a good market share in New York (after American) and should do well with the route.
United is consolidating their East Coast - Europe to IAD (Washington Dulles) where they are the dominant carrier.
Most of United's latest expansion has been focused toward Asia lately.
United still kept the LHR slot, which they then leased (I think for 3 years) to Air Canada. Thus they can resume use of the slot from another city in the future as business dictates.
Delta can not fly to LHR due to the Bermuda 2 agreement, so they'll fly to LGW. Delta has a good market share in New York (after American) and should do well with the route.
United is consolidating their East Coast - Europe to IAD (Washington Dulles) where they are the dominant carrier.
Most of United's latest expansion has been focused toward Asia lately.
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Not that I am aware of.
The big push right now is in Asia - and mainly China. It is a lucrative and growing market with a high percentage of business travel. United has most of the non stops and wants to increase that lead.
The big push right now is in Asia - and mainly China. It is a lucrative and growing market with a high percentage of business travel. United has most of the non stops and wants to increase that lead.
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They have spoken of Ireland as a potential market, but only DUB; they're not going to do any of this Shannon stopover nonsense.
Assuming everything goes to plan and the EU Transport Council approves Open Skies on October 12th, we should have unrestricted t/a access by Summer 2008, so that's the earliest we'll be seeing UA in Ireland.
Assuming everything goes to plan and the EU Transport Council approves Open Skies on October 12th, we should have unrestricted t/a access by Summer 2008, so that's the earliest we'll be seeing UA in Ireland.
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United will never serve Dublin, First of all they are committed to a 3 class configuration...no other trans-atlantic airline offers First Class, as there is no demand for the product. Secondly United has withdrawn it's presence from Ireland by closing the Dublin call centre. The trans-atlantic route United is putting all its' resources into obtaining is LHR-DEN.
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Cost Index United Airlines???
Hello
I hope you can help me. I´m looking for the cost index of United Airlines. Which cost index does United Airlines use in with aircraft?
thanks
Chris
I hope you can help me. I´m looking for the cost index of United Airlines. Which cost index does United Airlines use in with aircraft?
thanks
Chris
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United "Primping and perfuming" itself for sale (in pieces)
It is believed by many employees of UAL that the announcement is only weeks away, and has been seen coming for a while. It all adds up: Tilton's "merger happy" talk, its balance sheet surgery, the sale of SFO overhaul. If United can't be acquired as a whole, Tilton wants to chop it up and sell it in chunks under the rationalization of "unlocking shareholder value," just like with Mileage Plus. Nobody wants to be the first one to announce, but you can bet when it does, it's going to set off a firestorm of much-needed mergers and acquisitions to reduce the capacity in the US.
But I'm worried about the UAL employees... Tilton really does see more value in United in its parts... and I hear that it is coming, perhaps after the first of the year.
But I'm worried about the UAL employees... Tilton really does see more value in United in its parts... and I hear that it is coming, perhaps after the first of the year.
Last edited by AdAstraPerAspera; 30th Oct 2007 at 17:33.
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much-needed mergers and acquisitions to reduce the capacity in the US.
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No need to part out UAL
I don't think that United needs to be parted out to sell. For one, US Airways has been making noise about consolidation. All they need is a willing partner. Even just last thursday Mr. Parker talked about the offer made to Delta and how they are not worth what US Airways offered the shareholders as the standalone carrier they are today. He is still selling his ability to put together a megacarrier.
What worries me is who will get hurt in the process. Someone always does. But if a merger did come about, it would be a great thing if the worker bees could come out even if not ahead. After all, it takes a lot of workers to create a successful airline.
What worries me is who will get hurt in the process. Someone always does. But if a merger did come about, it would be a great thing if the worker bees could come out even if not ahead. After all, it takes a lot of workers to create a successful airline.
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The chop-it-up strategy has worked so well (for some, and so far) at AC that it can't be ruled out at their Star Alliance colleagues at UA.
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United Airlines thinking of grounding Aircraft
UNITED Airlines may ground up to 100 planes to save money on fuel expenses as other major carriers including American Airlines and Northwest Airlines also consider grounding aircraft.
This comes as two US senators asked aviation officials to look into a report that carriers may have cut back on fuel reserves to reduce expenses, possibly violating safety regulations.
Carriers are scrambling to meet demand and maintain their profit momentum after a successful summer travel season amid pressure from high energy prices.
Crude oil was up nearly $US1 ($1.09) on Friday on the New York Mercantile Exchange to $US96.40 a barrel. Every $US1 increase in crude oil prices costs airlines $470 million.
This comes as two US senators asked aviation officials to look into a report that carriers may have cut back on fuel reserves to reduce expenses, possibly violating safety regulations.
Carriers are scrambling to meet demand and maintain their profit momentum after a successful summer travel season amid pressure from high energy prices.
Crude oil was up nearly $US1 ($1.09) on Friday on the New York Mercantile Exchange to $US96.40 a barrel. Every $US1 increase in crude oil prices costs airlines $470 million.
It is a B.S. article from a rather uneducated reporter in the back of the press conference room. There was some discussion on aircraft and the low costs of grounding owned aircraft. The idiot reporter ran with it.
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It is a B.S. article from a rather uneducated reporter in the back of the press conference room...The idiot reporter ran with it.
From 'USA Today'
The very thought of $100 oil "makes me feel sick," says John Heimlich, chief economist at the US Air Transport Association, the airlines' trade group. He says oil prices that high could push one or two of his group's big member airlines into bankruptcy, with the most endangered solvent carrier being Houston-based Continental. And, he says, it likely would keep Delta and Northwest in Chapter 11 much longer than anticipated because it would be almost impossible in such market conditions to find investors to provide financing needed to emerge. Both airlines currently expect to exit bankruptcy in 2007.
Northwest officials declined to respond specifically to such suggestions. But in recent financial reports and news releases, Northwest officials have raised the possibility that the company may not be able to absorb escalating fuel costs.
Betsy Talton, spokeswoman for Delta, says high fuel prices "do pose a risk to our plan" to emerge from bankruptcy in 2007. "For 2006, we've seen a nearly $600 million impact from higher fuel prices."
Baggaley agrees that Continental is most at risk of entering bankruptcy protection if oil prices climb to three digits. Despite outperforming most other big carriers by several measures in the past couple of years, Continental has the smallest cash cushion. Continental spokesman David Messing declined to comment on that speculation.
Prolonged oil prices above $100 a barrel could even run the USA's only perennially profitable carrier, Southwest, into the red on a full-year basis for the first time since 1972. The Dallas-based discounter's recent quarterly profits have been mostly the result of gains from its industry-leading fuel-hedging program.
Southwest has locked in fuel prices by contracting for future delivery at negotiated prices. Though it continues to be the best-hedged U.S. carrier, those hedges are eroding as oil prices climb and futures investors seek a premium for locking in a price for the airline. This year, Southwest has contracts guaranteeing that the price of 75% of expected fuel purchases will be based on crude prices no higher than $36 a barrel. Next year, that falls to 65% at $41 a barrel. Only 39% of its 2009 fuel needs are hedged, and at prices up to $44 a barrel.
Southwest CEO Gary Kelly discounts the likelihood of $100 oil. "We don't think the fundamentals justify the current price, and certainly not something as high as $100. There's a lot of fear included in the market price right now." Still, Kelly acknowledges that "world events could occur that could push the market price much higher." That's why, he says, Southwest hedges in the first place.
Perhaps not such an "idiot" after all...
