United Continental Holdings , the parent of United Airlines, is taking another run at expanding its Japan service, irritating Delta that has suspended flights at Tokyo's nearest airport due to last month's massive earthquake.

The effort by United, which continues its post-merger integration with Continental Airlines, is an indicator of the sector's confidence in the potential for Japanese travel to rebound from the March 11 quake, tsunami and nuclear crisis.

United asked the U.S. Transportation Department last week to be considered for access rights to Tokyo's Haneda airport in the event Delta Air Lines does not resume flights.

Delta responded that it was not abandoning Haneda, that its current flight suspension met U.S. rules, and that United's petition omitted key facts.

More than 7 million passengers flew between the United States and its territories and Japan last year on all airlines, U.S. government figures showed.

"I think if you look at the Kobe earthquake (in 1995), you will find the market recovered after two months, so most of the airlines are hopeful of a similar result," said Helane Becker, an analyst with Dahlman Rose & Co.

Becker noted an uptick in aircraft passenger loads from a dramatic drop in the days after the quake, and said business in the second half of the year is expected to pick up strongly.

"People (airlines) who aren't in it want to be, and people who are in it want to protect market share. That's what you're looking at," she said.

United, Continental, Delta, and American Airlines, a unit of AMR Corp , all fly to Japan's Narita airport, which is 40 miles from central Tokyo. Haneda, which is downtown, has been expanding and attracting U.S. carriers that want to offer business and other travelers more convenience.

Delta and American were awarded limited Haneda service by U.S. transportation planners, as permitted by a treaty signed last year that relaxed limits to U.S.-Japan travel.

Source: Reuters

©United Continental

United Continental Holdings has unveiled the new United livery on the largest aircraft in the carrier’s fleet – the 374-seat Boeing 747-400.

"With the first 747-400 rebranding completed, the carrier now has at least one of each of its mainline fleet types painted in the new United livery," the company states, which results in one of each of its mainline fleet types painted in the new scheme.

United-Continental has completed painting on 309 mainline and regional aircraft, which accounts for 20% of its total fleet.

Source: Flightglobal

United Airlines announced the company was -- for the second consecutive year -- first in on-time performance for domestic scheduled flights among America’s five largest global carriers* for 2010. United ended the year with 85.2 percent of flights arriving at their destinations within 14 minutes of the scheduled arrival time, according to data published by the U.S. Department of Transportation in the Air Travel Consumer report released today.

United’s top performance in 2010 follows the airline’s leading position among this group for 2009.

“We outperformed our network peers through a continued focus on delivering reliable service to every customer, every day, everywhere we fly,” said Pete McDonald, executive vice president and chief operations officer.

For the month of December, United finished first for on-time performance and had the fewest number of cancelled flights among America’s five largest global carriers, according to data from the monthly report. United also ranked second among all 18 carriers whose arrival data is published in the report.

In 2010, for each month that United ranked first or second in on-time performance among the nation’s five largest global carriers, frontline co-workers received a performance incentive bonus. For the year, each eligible frontline co-worker earned a total of $1,240 in performance incentive bonuses.

About United Airlines

United Airlines, a wholly owned subsidiary of United Continental Holdings, Inc. (NYSE: UAL), operates more than 3,300 flights a day on United and United Express to more than 230 domestic and international destinations from its hubs in Chicago, Denver, Los Angeles, San Francisco, Tokyo and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is a founding member of Star Alliance, which overall offers 21,000 daily flights to 1,160 airports in 181 countries.

United Continental Holdings, Inc. became the holding company for both United and Continental upon close of the merger transaction. The two airlines will operate separately as they begin to integrate key customer services, marketing activities and airport processes. For more company information, go to united.com and follow on Twitter and Facebook.

*According to arrival data published today in the U.S. Department of Transportation Air Travel Consumer Report, United was first in on-time performance for domestic scheduled flights as measured by the U.S. Department of Transportation (i.e., flights arriving within 14 minutes of scheduled arrival time) for both the periods of January 1, 2010 to December 31, 2010 and December 1 to December 31, 2010 when compared to the largest U.S. global carriers based on available seat miles, enplaned passengers or passenger revenue, which includes American, Continental, Delta, United and US Airways. United also ranked first in on-time performance for domestic scheduled flights among this group for the period of January 1, 2009 to December 31, 2009, according to data published in February 2009 in the U.S. Department of Transportation Air Travel Consumer Report.


Source: United Airlines

United Continental Holdings ended speculation regarding whether United Airlines would retain its Economy Plus section following its merger with Continental Airlines last year, announcing Thursday that it intends to introduce the product into Continental aircraft beginning next year.

"Our customers value Economy Plus and the additional personal space that it provides," said UCH Chief Revenue Officer Jim Compton. "Customers who sit in Economy Plus are significantly more satisfied with their travel experience."

United introduced Economy Plus in 1999, offering up to five in. of additional pitch in the forward section of the carrier's economy class section. Customers with elite status in UA's Mileage Plus and CO's OnePass frequent-flyer programs may confirm seat assignments in Economy Plus when available. Customers may also purchase seat assignments in Economy Plus.

UA offers Economy Plus on all 359 mainline aircraft and more 150 large regional jets operated by codeshare partners. UCH said that when the multi-year conversion program is complete, Economy Plus will be offered on more than 700 mainline aircraft.

Delta Air Lines recently announced it will introduce a roomier section of economy called Economy Comfort, but only on its international long-haul fleet.

Source: ATW

Delta Air Lines (DAL) initiated the increase Monday on its premier class and last-minute fares, with increases up to $120 for a round-trip ticket. Other large network airlines subsequently matched it by raising prices on first-class, business-class and seven-day advance-purchase tickets that can cost as much as $900 for a domestic round trip.

After initially matching Delta's move, US Airways (LCC)changed its mind and canceled the increase Wednesday. Others — Delta, American Airlines (AMR),United Airlines(UAL) and Continental Airlines — followed suit, according to Rick Seaney, CEO of FareCompare.com, which closely monitors fares.

"I thought (Delta's hike) was overzealous," he says. "They're probing customers. They're also probing the appetites of other airlines. I guarantee you we'll see more probing in the coming days."

Airlines closely monitor each other's fares and frequently match any price movements, lest they lose sales to a cheaper competitor. Their attempts to raise fares often fail if competitors don't match them.

With the economy improving and corporate travel departments enlarging their budgets, airlines are emboldened to charge higher fares even as they keep their seating capacity in check.

The network airlines' most recent attempt to raise business travel fares was their second in as many weeks. They've also raised fares more broadly — affecting most of their seats and leisure travelers — five times since December.

But the airlines' failure this week may be a sign of the tentative pace of the recovery of business travel, which sank along with the economy in 2008.

As airlines raised fares for most of their routes, Southwest Airlines (LUV) didn't match in two of the rounds, Seaney notes.

"If Southwest doesn't participate," Seaney says, "(other airlines) tend to tiptoe around those (routes) to make sure they're at equilibrium with Southwest."

Airlines argue that rising fuel prices dictate higher fares.

Jamie Baker, a JPMorgan Chase airline analyst, told the Associated Press that if fares don't rise further, airlines will need lower fuel prices or will have to cut flights and seating capacity to boost their earnings.

Source: USA Today

United Airlines said it grounded 96 Boeing 757 aircraft in its fleet to perform unscheduled maintenance on the airplanes' computers, which could lead to cancellations or flight delays on Tuesday and Wednesday.

According to airline spokesman Charlie Hobart, United determined that further checks were necessary after modifications were made to the air data computers on the aircraft. The checks, which take 60 to 90 minutes each, are starting immediately, he said.

United expects completion of the checks in the next 12 to 24 hours. All of the systems have been fully operational, the airline said.

The airline urged customers to check their flight status at its website (united.com) before leaving for the airport.

It said it was working to provide additional aircraft where available and to accommodate customers on other flights and airlines.

United is a unit of United Continental Holdings Inc. Continental's fleet is not affected, United said.

Source: Reuters