United puts faith in Australia market

United puts faith in Australia market
By admin


United Airlines has said the addition of a third non-stop trans-Pacific flight illustrates its high expectations for the Australia-US market and demonstrates the benefits the Dreamliner aircraft will bring to its network.

United announced last week that it will launch direct Melbourne-LA services later this year in what will be the first route operated by the 787-9, the larger version of the 787-8 already in service.

The six times weekly service begins on October 26 with the frequency rising to daily in 2015 as the carrier takes delivery of more Dreamliners.

The new direct route will see United’s capacity between Australia and the US rise by almost 6%.

United's managing director for Japan and Pacific sales, Matt Miller, told Travel Today the non-stop service, coupled with the imminent deployment of 777 aircraft from Sydney to LA and San Francisco, demonstrated the commitment and value the carrier places on Australia.

“Investing in this market with product improvements, the newest aircraft in our fleet and going to three flights speaks very well about our commitment and our expectations of how the Australian market will continue to grow and become a great part of our portfolio,” he said.

He acknowledged the seasonal nature and the “up and downs” of the route but said yields have improved over the last couple of years. Being able to deploy the right aircraft that is able to “weather difficult seasons and years” will bring further stability and confidence to the operation, he said.

United will operate the 787s on thinner routes that would be uneconomical to serve non-stop using larger 747 or 777 aircraft. Melbourne to LA falls into that category along with Denver to Narita and Houston to Lagos, Miller said.

Along with the economic benefits of the aircraft – it is 20% more fuel efficient than the 747 – the smaller capacity allows the carrier to continue operating on highly competitive routes while “taking a few seats out of the market”.

United's 787-9 has 252 seats against 269 on the 777 and 374 on the 747.

“We have launched into new markets but more importantly we've added 787s to routes we are already flying in order to gain that economic benefit and to show capacity discipline," Miller said. "It allows us to pull a few seats out of a market but still maintain services, such as LA to Narita which is heavily served and highly competitive."

"The 787-9 has got the right range, capacity and has the best economies of any wide bodied aircraft we are flying today. We need a plane like it to serve a market like Melbourne to LA. It gives us the ability to add a third trans-Pacific flight but not flood the market with seats. We are all about capacity discipline.”

LA was chosen ahead of San Francisco for the direct flights as the majority of passengers from Melbourne travelling via Sydney to the US are heading to LA.

Miller said United also has 37 onwards destinations from LA and operates from its own terminals at Tom Bradley International airport.

Meanwhile, Miller admitted that United was “well aware” that its economy class product had been “at a competitive disadvantage” across the Pacific, a problem he said will be solved next month by the introduction of the 777 between Sydney and LA and San Francisco.

Despite the volatile nature of the Australia-US route, Miller denied that United had ever contemplated withdrawing from the market.

"Over 28 years we have stuck with it, when times were good and bad," he said. "We don't go into markets haphazardly and we don't pull out of markets haphazardly. You can't throw up your arms and say 'wow, this is a really bad year'.

"When SARS hit Hong Kong, we stuck by these markets and weathered a lot of the storm when others didn't. Schedule consistency and commitment, particularly from a corporate client perspective, is key to our success in Australia.

"When economic times turn bad or we have a bad season or someone throws a new flight on the market you can't just walk away from corporate contracts that you've had in the market for many years."

He also downplayed any impact of the weakening Australian dollar, saying the even split of US and Australian passenger offset any currency fluctuations.

Latest News

  • Sustainability

Flight Centre and Reforest hit one million trees target early

Flight Centre and Reforest have hit their inaugural annual target of contributing one million trees – four months ahead of schedule thanks to demand from customers for the agency’s Captain’s Pack. The target was set when the program launched in August 2023 and involves a contribution toward ‘Planting for the Planet’ for every purchase of […]

  • Tour Operators

New cruise options spearhead stacked APT 2025 program

APT has launched its Australia 2025 program, showcasing two brand-new cruising experiences and a $5m refurbishment to APT’s exclusive Mitchell Falls Wilderness Lodge. The highlight of 2025 is Seabourn Pursuit, a purpose-built ultra-luxury ship offering all-veranda suites, exceptional dining, and a dedicated Expedition Team for an unparalleled exploration along the Kimberley coast. Also debuting in […]

  • Products

Embrace the journey: Traversing the world with the Shokz OpenRun

If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]

  • Tour Operators
  • Tourism

TTC: Deals are driving up demand for September trips

The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]

  • Aviation

Qantas ‘working urgently’ to fix app data leak

Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]

  • Hotels

Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa

Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]

  • Luxury
  • News

Kamalaya Koh Samui clinches clutch of wellness awards

Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]