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United adds some new high-profile routes

  • United Continental (UAL -2%) announces new routes from both its San Francisco and Los Angeles hubs.
  • The new flights into Minneapolis (from LAX) and Atlanta (from SFO) enter into the home turf of some of United's rivals.
  • United will fly the Atlanta flights with Boeing 737-800 aircraft, while the Minneapolis route will be flown via SkyWest Airlines with CRJ700 regional jets.
Comments (2)
  • Delta's a much stronger company than United. This is just a terrible strategy on United's part -- the company might do better to retrench and work to rebuild its relationship with key customers. Fighting for market share with Delta in the latter's core markets will not end well for United.
    8 Oct 2013, 12:08 PM Reply Like
  • The COB in charge of United is now Smisek from Continental and the significance of this is that the pre-merger performance of the big 4 airline’s Continental’s (Smisek) metrics challenged the industry leader. Since taking reins from the now retired United COB Smisek has focused upon performance and customer satisfaction, a daunting task given United’s pre-merger record. During Smisek’s tenure as COB United has shrunk available seat miles faster than both United’s RPMs and the industry thus pushing load factor and PRASM up at change rates faster than the industry. United has a way to go to match the pre-merger statistics of Continental but the year over year trend is indicative . United still has further to go to turn customer satisfaction but the investment and upgrades to personnel, training, aircraft, terminals and clubs is progressing faster than the industry. It is these elements that lead to profitability, customer satisfaction, and ultimately stock performance. Thus, this is a better time to buy United while they still suffer from the inequality of the pre-merger units than it is to buy Delta. That said the best of the industry is still Alaska Air Group. In this industry you have a leader and the challengers. Delta, while very good, is not as dynamic in metric improvement as United or industry leader Alaska. Profitability and sustainability which is driven by performance is more important than assumptions about finite route change impact to market share.
    10 Oct 2013, 02:46 PM Reply Like
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