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United adds a new layer to changing competitive dynamics on the US west coast

Analysis

United Airlines has entered into the growing competitive fray on the US west coast with a push from its hubs in the region into two of Delta's hubs. Competition was ignited by Alaska Air Group and Delta with Delta increasing its service footprint from Seattle to drive feed for its burgeoning Pacific operation from the airport.

United's decision to add service from San Francisco to Atlanta and between Los Angeles and Minneapolis occurs as Delta in early 2014 begins a push into Seattle from the airport's heavily travelled domestic markets to bolster its growing international footprint from Seattle with a particular focus on Asia.

The decision by United to add service into its west coast hubs is occurring against a backdrop of weaker than expected revenue performance for 3Q2013 driven by lower yields in some trans-Atlantic markets and competitive capacity in China that contributed to lower than expected yields in the carrier's Pacific entity.

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