New York Newark Liberty International Airport
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Newark Liberty International Airport is located in Newark, New Jersey, 24km from New York City's Manhattan borough. Newark serves New York City and the wider Tri-State metropolitan region, and is a major international gateway to the United States. The airport is owned and operated by the Port Authority of New York and New Jersey, which also manages the other major airports serving New York: JFK and La Guardia, both of which are located east of Manhattan on Long Island. Continental Airlines has a major hub at Newark and FedEx has a major cargo facility at the airport.
Location of New York Newark Liberty International Airport, United States
Ground Handlers servicing New York Newark Liberty International Airport
315 total articles
39 total articles
United Airlines plans a realignment of its Pacific operations centred on increasing direct flights rather than stop-overs in Tokyo as the weakness in Japan’s currency has dragged down the carrier’s results in those markets for most of 2013. United is also building a strategy to directly serve non-traditional gateways to China as competitive capacity increases have also pressured the carrier’s Pacific performance.
The adjustments are freeing up some aircraft for redeployment into new markets from United’s Houston Intercontinental, Washington Dulles and Chicago hubs for new service to Europe, which perhaps seems like a safer option at the moment even as the region is on an at-best slow trajectory to economic recovery.
The success of these planned network shifts necessarily depends on execution, an area where United has faced challenges with respect to the merger with Continental. Now, getting it right will be central to the airline's Asian strategy.
A beleaguered United Airlines has outlined ambitious goals for its investors that entails an annual cost cutting scheme of USD2 billion and a pledge to begin returning cash to shareholders by 2015.
After battling operational, revenue and cost challenges during the last couple of years, United has no choice but to crystallise a plan to improve its performance in the medium term. Its target of rewarding shareholders is likely to be a competitive response to Delta Air Lines, who recently outlined plans to return USD1 billion to its shareholders during the next three years.
Additionally, United believes it can increase pre-tax earnings by two to four times during the next four years. Taken together it is tall order for a company that is still trying to deliver on its merger synergy targets. Now that United has declared those goals, the challenge is to deliver a successful execution, something that sceptics might have a right to be weary of.
Air Canada is planning to issue a request for proposal (RFP) to regional operators for certain transborder routes, presumably operated by its long-time partner Jazz. The plans come at a time the carrier has declared an aggressive unit cost reduction of 15% and works to improve its transborder performance that has been plagued during the past couple of years by overcapacity and pricing pressure.
But the move by Canada’s largest carrier also reflects its continuing efforts to diversify its regional aircraft operating platform as a means to keep costs in check. For Jazz and other regional carriers, the move illustrates the now established and permanent trend of an ever-shrinking pool of North American regional carriers whose heyday from the late 1990s to the mid-2000s is now just a fading memory.
Singapore Airlines (SIA) will have to again rely entirely on one-stop flights to serve the US market after its exclusive all-premium non-stops to Los Angeles and Newark are dropped over the next two months. The carrier will lose a competitive advantage, leaving it to compete with a large group of carriers that also offer one-stop products in the Singapore-Los Angeles and Singapore-New York markets.
SIA’s total capacity in the US market will drop by a projected 16% to about 22,000 weekly seats. As a result SIA stands to lose its status as the fifth largest Asian carrier in the US and drop four places to ninth position.
More significantly, the number of premium seats SIA has in the US market will drop by at least 26%. Economy seats will drop by up to 12% as SIA is expected to mitigate the premium reduction by transitioning its one-stop New York and Los Angeles services from 471-seat A380s to 409-seat A380s.
An important chapter in aviation history and Singapore Airlines’ strategy for the North America market comes to an end over the next two months as SIA operates its last non-stop flights to the US.
Without the A340-500 all-premium flights from Singapore to Los Angeles and Newark, there will not be any scheduled flights over 16 hours and 20 minutes. Ultra long-range routes have proven to be uneconomical, making it unlikely there will be a return of flights over 17 hours, which can only be flown by the niche A340-500 or 777-200LR.
There will only be 17 A340-500s remaining in service after SIA phases out the type and these aircraft are being predominantly used on short and medium missions. There are over 50 777-200LRs in service but this is also a very modest number and none of the aircraft are being flown to their maximum range.
Cathay Pacific will become the fifth-largest foreign airline in New York City in Mar-2014 when it adds daily Hong Kong-Newark service, complementing its existing four daily services to New York JFK, three served non-stop and one via Vancouver. Newark has a different catchment area than JFK, and the new flight is ideally timed for connecting traffic around Asia, and Cathay will be targeting that broad market as well as residual premium demand after Singapore Airlines exits the Newark-Singapore non-stop market in Oct-2013.
Premium traffic is rebounding the strongest out of North America for Cathay. That rebound combined with lower capacity as 777-300ERs replaced 747-400s lead to 14% yield growth in North America in 1H2013. Yet Cathay's decision to add capacity to familiar markets reflects its risk-averse approach. This contrasts to Cathay's North Asian peers becoming more dynamic, opening secondary cities and turning their attention to the under-served Asia-Latin America market. Cathay is showing some signs of breaking through inertia as it considers a passenger service to Dallas/Fort Worth, an under-served area and the key hub for strategic partner American Airlines.
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