This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

For United and the Boeing 787, Chengdu Is Just the Start in China

Stocks in this article: APPL BA LCC DAL UAL

SAN FRANCISCO ( TheStreet) -- A planned route from San Francisco to Chengdu, the fourth biggest city in China, shows that United (UAL) may be getting its act together for what could be unprecedented international expansion.

The world's biggest airline has paid a price for a bungled merger with Continental and for being early to take delivery of the Boeing (BA) 787, which arrived late and then was grounded for three months by the Federal Aviation Administration. Merger mess-ups caused some passengers to defect to Delta (DAL).

But now, it is the planned merger between American (AAMRQ) and US Airways (LCC) that faces problems, starting with the opposition of the Department of Justice, which will delay it and could prevent it. The 787 grounding ended in April and airlines are announcing the sort of ambitious new routes that embody the dream in Dreamliner -- the chance to open global markets that cannot initially be served with predecessor aircraft.

Perhaps no 787 route is more ambitious than Chengdu, which has never before had non-stop flights to the U.S. Last week, United applied to the U.S. Department of Transportation to fly 216-seat Boeing 787-8 thrice weekly between San Francisco and Chengdu starting in June 2014.

"Mergers can be distracting and we're happy to be mostly through ours," said Brian Znotins, United's vice president of network, in an interview. Additionally, he said, "Our 787s are up and flying, and this route is enabled by this airplane." Previously, only bigger airplane had sufficient range for the flight, but they provided too much capacity for a new route. The 787-8 has a range of 7,650 to 8,200 miles; SFO-CTU is about 7,000 miles, a 14-hour flight.

China offers many possibilities, Znotins said, and United is just getting started. "We're looking deep into China, looking at what the next best destination in China is," he said. "China is full of cities of 6 to 10 million people. With this airplane, we can be a first mover." Delta's 787 order has been deferred to 2020, while deliveries to American are scheduled to begin next year.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,073.39 +43.18 0.24%
S&P 500 2,089.45 +7.57 0.36%
NASDAQ 4,798.4480 +24.9760 0.52%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs