United Inks Lease Extension Deal - Analyst Blog


United Airlines - an affiliate of United Continental Holdings Inc. ( UAL ) - has entered into a lease extension contract with the San Francisco Airport Commission. Per the agreement, the airline will continue its activities at the airport's Maintenance Operations Center for a period of 10 years.

The 130-acre San Francisco Maintenance Operations Center is the largest support facility of United, with nearly 3,500 technicians working under the roof. The center engages in the repair and servicing of the airframes, engines and other components apart from carrying out cabin modifications of the aircraft.

The maintenance staff at the unit is currently working on the last leg of the three-year alternation process of re-designing United's 12 The Boeing Company 's ( BA ) 777 aircraft with the brand-new United Global First and United BusinessFirst cabins. This overhaul is scheduled to be completed by May. The personnel are also setting up satellite-based Wi-Fi systems on jumbo jets that will fly both domestic and international.

In addition to this hub, United operates maintenance centers in Chicago, Denver, Houston, San Francisco and Los Angeles. The carrier also targets to complete the building of two new wide-body shed at Newark Liberty International Airport and Washington Dulles International Airport by 2013 end.

The extension of the lease of the San Francisco plant will highly benefit United that remains committed to render superior and efficient services to its customers and people on the Bay Area. The deal also highlights the company's efforts to prevent the innovation and renovation process of its fleet from slowing down.   

A few days back, the company introduced "p.s." Premium Service on all 46 flights each way, every week that fly nonstop from San Francisco to John F. Kennedy International Airport at New York. These revamped airplanes feature a sparkling new interior with flat-bed seats in the premium cabin, on-board Internet and on-demand entertainment options as well as dinning and wine offering for premium-cabin passengers.

United holds a commanding position at the San Francisco International Airport, with around 5,600 employees and over 300 daily flights - a figure that is much higher than any other airline. The company's services from the airport extend to nearly 85 destinations including 16 markets in Asia, Australia, Europe and Latin America. Within the next few weeks, there will also be nonstop flights between San Francisco and Paris.

United Continental - which operates with other industry players such as Delta Airlines ( DAL ) and Southwest Airlines Co. ( LUV ) - currently retains a Zacks Rank #3 (Hold).

BOEING CO (BA): Free Stock Analysis Report

DELTA AIR LINES (DAL): Free Stock Analysis Report

SOUTHWEST AIR (LUV): Free Stock Analysis Report

UNITED CONT HLD (UAL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BA , DAL , LUV , UAL



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