United hopes state visit to enhance biz ties

Carrier aims to be top choice for Sino-US flights

Editor's note: As the largest carrier in the market, United Airlines is a key player in Sino-US air traffic. Sino-US air traffic is expected to continue growing, with boosts from the two countries' increasing trade exchanges and relaxed visa policies. President Xi Jinping's visit to the US this month is also expected to promote tourism between the two countries. However, competition is heating up as carriers from both China and the US add more flights and routes across the Pacific.

Jake Cefolia, United Airlines' vice-president, Atlantic and Pacific Sales, talked to China Daily reporter Wang Wen about his opinions on the market and United Airlines' plans for Sino-US routes.

Could you comment on the performance of United Airlines' current routes to China? How about the average load factor?

United Airlines offers 84 weekly flights to the US from Beijing, Chengdu, Hong Kong and Shanghai. Our Chengdu-San Francisco service, which we launched in June 2014, is the first nonstop trans-Pacific service from Chengdu.

In addition, we launched a nonstop service from Shanghai to Guam in October 2014, the only scheduled nonstop service between Chinese mainland and Guam.

The average load factor on our China routes is broadly in line with that for our Asia-Pacific routes as a whole, in the 80 to 90 percent range for the period from January to August 2015.

It was reported that United Airlines planned to add more flights in and out of Shanghai, but failed due to slot issues, or known as departure and landing schedule. Are you still working on the additional flights? When will we see more United Airlines flights to China?

We are still working to obtain a commercially viable slot in Shanghai for a second daily flight to San Francisco and look forward to starting this service.

We are proud to be the first and only airline to offer a nonstop trans-Pacific service from Chengdu, and to have increased the frequency of that service to daily this summer.

Our Chengdu-San Francisco service is a good example of the types of growth opportunities we expect to pursue as demand materializes. We continue to look for opportunities for further growth in China and are ready to add capacity whenever we see sufficient profitable demand.

What is your priority in the China market in the next three to five years? Can we expect more Chinese destinations?

China is one of our most important and fastest-growing international markets.

Our focus in the short term is to increase awareness of United Airlines as the most flyer-friendly US airline for Chinese travelers by emphasizing our commitment to the market, our convenient flight schedule to the US and our Chinese-focused services both on the ground and in the air.

We will celebrate our 30th anniversary of China service in 2016. We are proud of our deep knowledge and understanding of the market, as well as our long-term relationships with our business partners and customers in China.

This foundation will definitely lead to opportunities for us for further network and capacity growth in China.

Chinese airlines expanded quickly in the Sino-US market in recent years. Do you feel pressure from Chinese carriers? What is the competitiveness of UA compared with Chinese airlines?

While the Chinese carriers have expanded rapidly in recent years, it's actually just compensating for their slower-paced growth in preceding years.

One of our biggest advantages over our competitors is our unmatched network of flights between China and the US and beyond.

For example, once our Chinese customers arrive at our hubs in Chicago, Los Angeles, Newark Liberty International Airport in Newark/ New York, San Francisco and Washington/Dulles, they can connect to flights to more than 300 destinations throughout North, Central and South America and the Caribbean.

Airlines from the US have adopted multiple methods to cooperate with Chinese airlines recently. What do you think about the cooperation with Chinese carriers? Do you plan to deepen your cooperation in China?

United Airlines and Air China are both members of Star Alliance and have a long history of cooperation, providing benefits to both of our customer bases through more long-haul flight choices and convenient access to interior cities in both countries, feeding our respective hubs and further extending our flight networks.

In June this year, United Airlines and Air China announced plans to expand our code-sharing cooperation, covering an additional 22 routes in the China and US markets.

With this expansion, the airlines code-share on more than 100 routes offers customers the most comprehensive route network between the US and China.

United Airlines and Air China customers are able to earn and redeem miles on both airlines' flights through frequent flyer program cooperation. In addition, United Airlines and Air China elite customers are able to access the other carrier's airport lounges when traveling on international journeys.

What do you think about the current Sino-US air traffic market? How will Xi's visit to the US affect the market?

As I've said, China is one of United Airlines' most important and fastest-growing international markets.

We are confident that President Xi Jinping's visit to the US this month will build confidence in China as a great business market as well as an attractive tourist destination among the general public in the US.

Such visits between the leaders of the two largest economies in the world build stronger relationships and enhance understanding, which undoubtedly will lead to further business ties between our two countries.

What's your opinion on this year's global aviation industry? Can we say the industry has already recovered?

We are optimistic about the global aviation industry in the near future. United Airlines had a very good second-quarter financial result this year and I am proud of the work our employees have done to deliver record earnings, which benefit our customers, employees and shareholders.

Our solid financial results are permitting us to further invest in improving our operations and our product. We have a great deal of confidence in our future as we work to make United Airlines the global carrier of choice.

Contact the writer at wangwen@chinadaily.com.cn

(China Daily 09/25/2015 page25)