Comment: United Airlines 777 switch a tonic for all

By admin


The announcement yesterday by United Airlines that it will replace its ageing 747s with 777 aircraft between Australia and the US will go down well with passengers and the trade.

To be more specific, economy class passengers will no longer disembark a trans-Pacific United flight feeling deprived and, well, like second class citizens.

From April 1, they will finally have the privilege of seat back entertainment. Hallelujah!

For some time now, United has disadvantaged itself by being the only one of four carriers serving the US from Australia directly, not to offer audio-video on demand for every passenger.

Those in premium cabins – the revenue drivers as far as United is concerned – have, of course, been well looked after, with lie flat beds and IFE. But economy passengers have largely been left to fend for themselves.

A friend of mine, travelling with her two young kids to LA a short while ago, vowed she would never fly United again as long as the airline failed to provide seat back TV’s for economy passengers.

She doesn’t fly very often but was genuinely amazed at the lack of amenities, proving there is an expectation that personal IFE is available across all cabins, and not just reserved for the privileged few at the front of the aircraft.

This aircraft upgrade will plug that gap between what is expected and what is offered.

It also means the trade can sell United with more confidence. Knowing the airline offers the same onboard experience as Qantas, Virgin Australia and Delta will surely serve the airline well.

In addition, deploying the smaller 777 should financially be more attractive for United. With 269 seats, it has 105 fewer seats than the fuel-hungry 747. Over the course of a month, that is more than 6000 fewer seats to sell.

As with all carriers plying the Pacific, loads for United have been reasonably strong. Latest government figures, for May, showed an inbound load factor of 81% and outbound of 79%.

But loads are misleading. I could fill an aircraft by offering $50 fares but bottom line profit would be non-existent.

By reducing capacity, by having to sell fewer seats, United will be hoping yields will rise. And the knock on effect of reduced capacity could also benefit Qantas, Virgin and Delta.

United’s switch to the 777 will be a win-win for everyone concerned; passengers, trade and even its competitors.

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