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United Airlines states it remains committed trans-Pacific services

30-Oct-2009 11:10 AM

United Airlines CEO and Chairman, Glenn Tilton stated the carrier remains committed to its trans-Pacific services, despite the route becoming a loss-maker for the carrier (Sydney Morning Herald, 29-Oct-2009). Mr Tilton added he was "not surprised" of plans by V Australia and Delta Air Lines to launch a JV for their US-Australia services. Air Canada CCO, Benjamin Smith meanwhile described competition on services between Australia and the US as a “bloodbath”, stating carriers operating on the trans-Pacific route would have to reduce capacity if the economy does not start to recover soon.
United Airlines: "It's a hugely significant market for us and we are in that market for the long haul…[Their plans] are not a surprising response to the fact that there is too much capacity from the United States to Sydney. So finding some means by which to share that risk is probably a perfectly reasonable thing for them to do." Glenn Tilton, CEO and Chairman. Source: Sydney Morning Herald, 29-Oct-2009.