Airline execs split over Pacific growth

By admin


Airline executive are split on the prospects of another carrier entering the trans-Pacific route, as a conference panel discussed the outlook for the market.

United Airlines Japan and Asia Pacific sales managing director, Matt Miller, said there was “probably” enough room for another player, despite four airlines flying direct to Australia, one operating to New Zealand and a further three offering a one stop service from the US to Australasia.

But Fiji Airways acting chief executive Aubrey Swift disagreed, arguing there was not enough demand for another carrier.

The debate came as figures showed a near-11% rise in traffic from Australia to the US in the year ending June.

Swift said US carriers had “better opportunities” elsewhere than to operate on an already congested route.

“My sense is that there are other fish to fry for the US carriers and merger activity has taken up a lot of their energy,” he said at the CAPA aviation conference in Sydney. “I don’t think there is the demand. There are better opportunities and generally long haul sectors are less profitable.”

Swift added that it was also wrong to suggest Air New Zealand has enjoyed a monopolistic position on the route since Qantas withdrew its Auckland to LA flights in May 2012, insisting consumers “have other options”.

Miller, however, predicted another carrier could make a go of the route, assuming it was done for the right reasons.

“Is there room? Probably, but it needs to be done intelligently, not because of egos,” he told the conference.

Earlier, Miller said the addition of fuel efficient 787 Dreamliners to its fleet would provide opportunities to operate “thin, long haul markets” that can’t sustain larger, less efficient aircraft.

“Denver to Narita is a route that we have wanted to serve for many years and the 787 works beautifully on this route,” he said. “We are excited about what this aircraft can offer us.”

United has seven 787s in its fleet and a total order of 65.

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