SF Gate: United Airlines to resume full trans-Pacific services next month

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Tuesday, August 26, 2003 (AP)
United Airlines to resume full trans-Pacific services next month
MARGARET WONG, Associated Press Writer


   (08-26) 06:29 PDT HONG KONG (AP) --
   United Airlines said Tuesday it will restore all trans-Pacific flights
next month, including those from Hong Kong, as it attempts to recover from
the sharp downturn in air travel caused by SARS.
   Meanwhile, United's chief executive, Glenn Tilton, who begins a two-day
trip to Beijing on Wednesday, said he will discuss cooperation plans with
mainland Chinese airlines to help United expand into the booming mainland
Chinese aviation market.
   United, the world's No. 2 carrier, slashed 75 percent of its flights in
and out of Hong Kong at the peak of the severe acute respiratory syndrome
outbreak, said Mark Schwab, a United vice president.
   The airline, which earns 17 percent of its revenue from trans-Pacific
routes, has been gradually restoring its services since SARS fears eased
in June, Schwab said. The airline will also resume daily flights between
Hong Kong and Singapore on Oct. 26, he said.
   SARS first surfaced in mainland China late last year and killed 299 peop=
le
in Hong Kong. The virus prompted travel warnings across Asia and
devastated Hong Kong's tourism industry.
   United Senior Vice President Graham Atkinson said the airline is "seeing=
 a
significant upturn in terms of business travelers' pent-up demand," but a
full recovery is only expected by the end of this year or early next year.
   Tilton said he will discuss with mainland Chinese carriers possible
cooperation such as code-sharing, frequent-flyer programs and facility
sharing.
   The code-sharing agreement would allow United to put its UA flight numbe=
rs
on its mainland partner's services and sell seats as if they were on
United flights.
   Tilton declined to name a partner, but hinted that it might be Air China.
   "In the event that a code-share with Air China would happen, that would =
be
a good thing, and would benefit passenger connectivity," Tilton said. He
said the possible tie-up was one of the "worst-kept secrets" in the
airline industry.
   Tilton said the Asia-Pacific market, with its potentially huge economic
growth, presents the "most significant" international opportunity for
United.
   "We are more committed than ever to the region, to China, to Hong Kong,"
Tilton said.
   Tilton said he hopes the Chinese partners will eventually become a member
of Star Alliance, a network comprising 16 carriers, which includes United,
Air Canada, Deutsche Lufthansa and Singapore Airlines.
   Selina Chow, chairman of the Hong Kong Tourism Board, said despite a
strong rebound in the short-haul market, the number of visitors from the
United States in July was still down 42 percent compared with the same
month last year.
   "This is understandable because it always takes a bit more time to rebui=
ld
confidence in the long-haul market and convert interest into actual
travel," Chow said.
   American travelers are the fourth largest group of visitors to Hong Kong,
with more than 1 million arriving here last year, according to Chow.

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Copyright 2003 AP

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