New Denver-Tokyo 787 service to help boost United's sagging trans-Pacific performance

United's plans to launch new flights from its Denver hub to Tokyo Narita Airport in Mar-2013 with its 219-seat Boeing 787 comes at fortuitous timing. While North Asia-North America traffic has been growing, primarily at the behest of Asian carriers, United is the best positioned of US carriers to take part in this growth since it achieves the highest trans-Pacific yields. Combined with anti-trust immunity with Japan's All Nippon Airways (ANA), which is already showing benefits, and United's market leading position in the US, United will be able to grow the market.

Yet trans-Pacific yields are the lowest international ones for United, as it is with other US carriers. The trans-Pacific market does not have the strong corporate and leisure base of Europe or the VFR traffic of Latin America. With yield growth being more limited, the 787 will help the bottom line with its step change in efficiency, reducing costs. United will certainly not be the last carrier to take advantage of changing competitive dynamics.