Despite losses, United plans no additional short-term cuts
By Tim Kelly
Bloomberg News Service
TOKYO — UAL Corp.'s United Airlines doesn't plan to cut more capacity in the short term as losses mount following the Sept. 11 terrorist attacks.
Bloomberg News Service library photo
United has already cut flights by about 26 percent, joining other U.S. carriers in trimming capacity and reducing fares in a bid to stem losses after a slump in travel demand following the attacks.
As jets line up at the United Airlines terminal at Chicago's O'Hare airport, United has decided not to make additional cuts in its domestic service for now. The airline, like others, has seen business plummet since Sept. 11.
There's "no need right now" to cut capacity further, said Rono Dutta, president of the second-largest carrier, at a luncheon speech in Tokyo late last week.
Airlines serving Asia have been increasing flights within the region, while reducing capacity on trans-Pacific flights. United is the third-largest carrier serving Tokyo's Narita international airport after Japan Airlines Co., Asia's biggest carrier, and Northwest Airlines Corp.
Dutta said United was awarded one daily flight between Taipei and Tokyo, less than the three slots the airline had sought. The flights will start in April when a second runway is opened at Narita.
Japan's Ministry of Land, Infrastructure and Transport wants to give new landing rights to Japan Airlines and All Nippon Airways Co., and to attract carriers from countries that have few flights or don't operate to Tokyo.
Dutta said United will pursue more flights on the Taipei-Tokyo route, he said.
Narita's new runway will add about 50 percent to existing capacity, the first expansion since the airport opened in 1978. Northwest Airlines wants an additional 35 flights a week from Narita, Japan's main entry point for business travelers, or an increase of 28 percent on existing capacity.
With only one new daily slot United's overall share of landing rights will fall, Dutta said.
Aviation officials in Japan argue that U.S. airlines already control 34 percent of landing rights at the airport, compared with less than 8 percent at other major airports around the world, according to the ministry.
Narita handles 52 percent of Japan's overseas air travel. United has 10 percent of slots at the airport, Japan Airlines a quarter of landing rights, and Northwest 14 percent.
