United Airlines - the wholly owned subsidiary of
United Continental Holdings Inc.
) - announced its plan to expand its service from its home base,
Chicago. Elmira, Topeka and States College will be added to
United Airlines' route from the beginning of next year.
United Airlines will add two daily round trip flights from
Chicago's O'Hare International airport to Elmira, NY, State
College, PA and Topeka, KS.
United Airlines' affiliate airline Express Jet will use a 50
seat regional aircraft and take approximately 2 hours 45 minutes
and 2 hours 30 minutes to reach Elmira and State College
respectively. However, the return flights will take around 1 hour
to reach Chicago. Notably, in Apr 2013, United Airlines along
with its airline partner
) agreed to buy 30
) E-175 regional jets in a deal worth $4 billion.
The State College and Topeka flights are expected to start
from Jan 7, 2014, while the Elmira flight will begin from Feb 13,
2014. Both Elmira and Topeka are new destinations for United
Airlines while the company connects States College from
Washington's Dulles International Airport.
This domestic expansion comes quick on the heels of the
addition of another domestic route within United Airliones'
network. Recently, the company declared a new daily nonstop
flight from Indianapolis to San Francisco from Jan 7, 2013 using
Airbus A-319. The nonstop flight will connect one of the fastest
growing metropolitan with United Airlines' largest Pacific hub,
thus aiding customers to fly across to North America, Asia and
In addition to domestic expansion, the company is also
expanding its service internationally and has recently received
approval from the U.S. Department of Transportation to offer
nonstop flights from San Francisco to Chengdu in China.
United Airlines declared soft operating performance for the
month of Aug, where both domestic airline traffic (measured by
RPM) and domestic capacity (measured by ASM) reported a decline
of 2.6% and 2.8%, respectively.
We believe the new routes will increase both capacity and
traffic for United Airlines as these are expected to attract
business travellers of this locality with better connectivity to
Chicago - one of the largest business destinations in Eastern
United Airlines, which operates with
JetBlue Airways Corp.
) currently carries a Zacks Rank #3 (Hold).
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