United Air Considers Delaying China Flights By One Year
Posted on: Wednesday, 16 April 2008, 06:00 CDT
United Airlines is seeking the federal regulators' permission to delay the launch of its flights between San Francisco and China by one year, citing the rocketing jet fuel prices and the economic slowdown in the US as its reasons, reported Bloomberg.
According to Jeff Kovick, the spokesperson for United, the airline was scheduled to start its service to Guangzhou in China on June 18, 2008, with return flights set to take off on June 20. However, the US-based airline is seeking to revise the launch date and start the service by June 30, 2009.
However, the US Transportation Department has not yet reviewed the request put forth by the airline.
It is claimed that the airline's expected fuel cost to fly between the two destinations increased 52% to $70 million. The demand for Guangzhou is also likely to be below the forecast, owing to the subprime debt crisis and its impact on the US economy.
The airline reportedly believes that the postponement will enable it to retain the ability to launch the flights when conditions are fair and also avoid the deficit because it expects a substantial operating loss on the route.
Source: Datamonitor
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