State of the Airlines

Wednesday, February 23, 2005

NEWS: International Expansion for US Airlines

American Airlines and Continental Airlines have both received tentative approval for new direct flights to China. This is the first award of this kind in over twenty years. American could begin service in 2006 but Continental could begin much March 25 of this year. Both airlines will end up with the right to fly up to 7 flights weekly. This is big news for both airlines. The right to fly to China is a prize since little competition exists on the routes. Northwest Airlines and United Airlines are the only US carriers serving China right now. Delta Airlines code shares with a Chinese carrier.

This is another trend we can expect to see from the major airlines here in the US. They are looking very closely at international routes for the best opportunities. China is one of those opportunities. The lack of competition should give the airlines that fly there the ability to set fares at the appropriate level. You know...fares that allow them to make money. What a concept.