UNITED AIRLINES COMMITS TO AUSTRALIAN MARKET DESPITE COMPETITION

Dino D'Amore
By Dino D'Amore December 17, 2010 10:55

UNITED AIRLINES COMMITS TO AUSTRALIAN MARKET DESPITE COMPETITION

Chief executive of United Airlines, Jeff Smisek, is confident about its presence in the Australian market despite tough competition driving down fares.

“This market is clearly unstable, there’s far too much capacity for anybody to make money on this route today,” said Smisek, who complains there are too many seats and fares from the four airlines operating in the space that makes it difficult to achieve a profit.

Previously only United and Qantas Airways competed for market share but since V Australia and Delta Air Lines entered the fray, turning a profit has become tough: “The route has historically been a good route for United, yes, but obviously with the level of capacity we have today it’s tough slugging for everybody I’m sure,” said Smisek.

United flies to Melbourne and Sydney from Los Angeles and San Francisco.

Dino D'Amore
By Dino D'Amore December 17, 2010 10:55
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