SFGate: United postpones SFO-Guangzhou route

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Friday, May 23, 2008 (SF Chronicle)
United postpones SFO-Guangzhou route
George Raine, Chronicle Staff Writer


   United Airlines blamed skyrocketing jet fuel prices for its decision
Thursday to postpone plans to launch daily nonstop flights from San
Francisco International Airport to Guangzhou, a major manufacturing center
and port on China's Pearl River.
   For the same reason, US Airways said Thursday that it is postponing its
planned Philadelphia-to-Beijing service, and Northwest Airlines asked the
U.S. government for permission to suspend some existing cargo service to
China.
   United was to commence the service to Guangzhou on June 18 but is pushing
the date back a year, to June 2009, airline spokeswoman Robin Urbanski
said.
   The U.S. Department of Transportation awarded United the coveted route in
September, part of an agreement signed with China in July to double the
number of daily flights between the United States and China during the
next five years.
   Since then, however, oil prices have jumped more than 60 percent.
   "We are reducing our growth where the economics are just not strong enou=
gh
to offset those higher fuel costs," Urbanski said.
   New routes take time to be financially sustainable, she said, although
interest had been demonstrated in the Guangzhou service.
   "But with these record-breaking fuel costs we need to be disciplined abo=
ut
where we are flying," she said. The carrier was planning to fly a Boeing
777 for the service.
   US Airways' service to Beijing was to start in spring 2009, but the
airline said it now plans to begin flying there in early 2010.

   E-mail George Raine at graine@xxxxxxxxxxxxxxxx -------------------------=
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Copyright 2008 SF Chronicle

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