United States of America
- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Market Share
- Low Cost Carriers
- Fast Fact Report
- IATA Code
- International Airlines serving this country (excluding codeshares)
Air Travel is frequently the most practical method of covering the large distances between cities in the USA. The domestic air system is extensive, with dozens of competing airlines, hundreds of airports and thousands of flights daily. The US is the world's largest aviation market. Domestic airlines have mostly rebounded since September 11. Delta (now merged with Northwest), United (merged with Continental) and US Airways (merged with American) have each entered and emerged from bankruptcy still flying, though mergers and downsizing have had an impact on the travel experience. The US has three major international airlines that function in a similar manner and size as a national carrier; American Airlines, United-Continental Airlines Holdings and Delta Air Lines. The expansion of LCCs such as Southwest Airlines, Virgin America and JetBlue has increased competition and lowered prices domestically and in some cross-border markets.
The Federal Aviation Administration (FAA) is an agency of the United States Department of Transportation with authority to regulate and oversee all aspects of civil aviation in the US. The Transportation Security Administration (TSA) is the government agency responsible for security in all modes of transportation and is solely responsible for carrying out screening of passengers and their baggage (both checked and carry-on) at 450 airports across the US.
Airports in United States of America
2,284 total articles
One area where United Airlines has made important strides during the last few years is in overhauling its balance sheet. Its efforts have gained some recognition from credit agencies for its progress in paring down debt and improving leverage ratios; but similarly to its rival American Airlines – attaining an investment-grade credit rating is not a huge priority for United. The airline believes it can achieve some benefits that investment-grade companies enjoy with the current state of its balance sheet.
In order to sustain the progress it has made in balance sheet repair United plans to amend its aircraft order book to slash capex commitments during the next couple of years, including the deferral of 61 Boeing narrowbodies. United is hinting that other fleet changes could be under consideration, including deals similar to the agreement it forged during 2015 to lease used Airbus A319s.
This is Part 2 in a two-part series reviewing United’s financial and revenue-generating opportunities.
Donald Trump, the ‘Third World’, and US airports. Insulting to third world airports. PPPs are needed
Politics is a hotbed of hyperbole, but the recently concluded US Presidential election reached new levels. Among the rhetoric was a reference made early in Oct-2016 by the now President-elect, and never willingly understated, Donald Trump concerning the condition of the nation’s airports, which he described as being of ‘Third World’ standard.
Mr Trump is not the first US politician to complain about airport infrastructure in the USA and neither is he the first to describe it as ‘Third World.’ It is certainly true that many airports lack investment and are shabby compared with their peers in Europe and the Asia Pacific region. Moreover, Congress has repeatedly called for much greater investment, as have Airports Council International North America and other interested organisations.
But is the criticism fair? This report examines the operational and construction activities at US airports that he has singled out. It goes on to look at airport infrastructure financing under the Trump regime, and to consider other relevant aspects of his policies.
For years United Airlines has operated at a competitive disadvantage to its large US network peers. The challenges that United never seemed to overcome were largely self-inflicted, and ranged from widespread employee discontent to consistent revenue shortfalls.
Now United finally appears to be charting a course to level the competitive playing field with its large global US network competitors, to close the long-standing revenue gap it has held with its rivals. The elements of United’s plan to shore up revenues include bolstering connections at its hubs, improved revenue management, and product segmentation that entails a new basic economy fare structure whose restrictions are more stringent than those of its peers.
United’s revenue transformation will not occur overnight, but for the first time since its 2010 merger with Continental the company seems laser-focused on shrinking the competitive challenges that have hindered its performance. It projects billions in improvement – to pre-tax profits by 2020 – as a result of its doubling down on efforts to shore up revenue. Obviously the measure of United’s success lies in its execution and its ability to navigate competitive responses to its revenue-generating strategies.
This is part one of a two part series examining United’s strategies to compete more effectively with its peers on revenue and costs.
The CAPA Asia Aviation Summit was held on 15/16-Nov-2016 at the Capella at Sentosa in Singapore. First off, BOC Aviation's Robert Martin and Indigo Partners' William Franke discussed the outlook for long haul LCCs, as well as the aviation implications from Donald Trump's election to US President. Malaysia Airlines CEO Peter Bellew gave a key presentation on the transformation of the airline and plans for its A380 fleet.
Panel discussions addressed the future of the full service airline model in Asia, the opportunities from big data, China's "One Belt, One Road" strategy, joint venture strategies, partnerships/alliances at LCCs.
Day one was capped off by a Gala Dinner with the CAPA Asia Aviation Awards for Excellence.
Delta-Korean Air joint venture creates trans-Pacific's second largest bloc. Cathay, EVA under threat
The unprecedented aviation market growth between Asia and North America is forcing airlines to re-evaluate their core strategy and reassess who is a competitor and who could be a partner. It seems probable that Delta Air Lines and Korean Air will form a joint venture, potentially making them the second largest trans-Pacific bloc.
The next two largest airlines without a deep partnership, EVA Air and Cathay Pacific, are having to confront significant change, without the support of partners. Delta-Korean Air brings United-ANA its closest rival yet, while the American-JAL JV – already smaller – needs bulking up.
Korean Air brings Delta a wider network in Asia than ANA or JAL offer to their respective JV partners, United and American. A Korean Air-Delta JV could result in more destinations and flights being added once they are able to sell jointly.
Latin American airline group Avianca Holdings is welcoming continued improving trends in the region, which started to emerge in 2Q2016 and appear to be gaining strength in 2H2016. The company’s yield decreases slowed year-on-year in 3Q2016 to the single digits, and Avianca posted a rise in yields sequentially from 2Q2016 to 3Q2016.
Avianca’s optimism rests on robust load factors, particularly on long haul routes from its largest market – Colombia –to the US and Europe. Demand is also picking up in South America as travellers adjust to the effects of currency depreciation that, while improving, have become a mainstay in many markets in the region. Avianca’s booking trends for Nov-2016 and Dec-2016 indicate that positive momentum is continuing into 4Q2016.
The company faces changing dynamics in its largest market Colombia in late 2016 when Copa Airlines shifts its business model in the country to a low cost operation in order to compete more effectively. Avianca seems unconcerned about Copa’s change in strategy, citing its strong position in Colombia despite increased competition arising in the country’s domestic market during the last few years.
Colombia’s market should undergo further changes in 2017 when LATAM Airlines Group begins instituting a new pricing model in its domestic markets, including in Colombia.