United Continental Holdings Inc.
) stock reacted positively to the news that its Japanese partner
All Nippon Airways has won 11 additional take-off slots at
Tokyo's Haneda airport. All Nippon's win increases United's
prospect in Tokyo's downtown airport.
Haneda - the second busiest airport in Asia - is set to gain
40 new daytime landing slots for flights from Mar 2014. Notably,
Haneda airport resumed international operations in 2010 after it
opened a new international terminal. Back then, United did not
win any slots.
Haneda, which is located in the heart of the city, holds more
attractions for business travelers than Narita airport, located
40 miles east of Tokyo. To tap this opportunity, Chicago-based
United Airlines is vying to get a slot of its own in Haneda,
whereas its Japanese ally All Nippon Airways wanted to get a
major portion of the 20 slots reserved for the local carriers. If
successful, United Airlines will use the slot to connect Haneda
and San Francisco.
All Nippon, which is the largest airlines in Japan, earlier
argued that government's biasness toward Japan Airlines at the
time of its financial restructuring tipped the balance in favor
of the latter. However, Japan Airlines has won five slots this
Delta Airlines Inc.
), which is the sole U.S. airlines without a Japanese partner,
currently has 2 night time slots at Haneda. Delta now wants 25
slot pairs that they were forced to shift to Narita airport in
Tokyo's extended business relationship with various parts of
the world makes it an important destination for major carriers
and United is no exception. We believe that getting 11 slots is a
major win for both these star alliance members, which will be
able to connect many more domestic and international markets from
Japan via their collaboration.
United Airlines, which operates with
JetBlue Airways Corp.
) holds a Zacks Rank #3 (Hold). However, another stock worth a
look within this sector is
Republic Airways Holdings Inc.
), which carries a Zacks Rank #2 (Buy).
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