SAN FRANCISCO (
) -- A planned route from San Francisco to Chengdu, the fourth biggest city in China, shows that
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
and for being early to take delivery of the
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
But now, it is the planned merger between
( AAMRQ) and
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.
Znotins, who began at Continental in 1999, compared the opening of China with Continental's opening of Mexico in the 1990s. "Using 50-seat regional jets and similar airplanes, Continental opened up 30 new markets in Mexico" in places like Villa Hermosa and Ciudad Carmen, he said. Many of those markets grew and are now served with more frequency and with larger aircraft. In commercial aviation, opening new routes often leads to a "virtuous circle" where new service leads to increased business opportunities which leads to more service. Suddenly, "U.S. companies are saying, 'We don't mind putting our factories there,'" Znotins said.
United expects both business and leisure passengers to Chengdu.
, for instance, regularly sends employees from the Bay Area, as well as from a campus in Austin, Texas, to Chengdu, a high-tech manufacturing center. About 200 of the Fortune 500 companies have a presence in the city. Today every flight from the U.S. to Chengdu is a one-stop through Beijing or Shanghai; many flights from the U.S. involve two or more stops.
The route is enabled largely by the strength of United's San Francisco hub, the premier U.S. gateway to Asia. From San Francisco, United offers about 300 daily departures to 70 domestic destinations and 20 international destinations, including eight in Asia (Chengdu would be the ninth). United has more non-stop Asia destinations from San Francisco than any other U.S. carrier has from any other U.S. airport.
-- Written by Ted Reed in Charlotte, N.C.
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