Jul
17
The market for Asian routes are a must for most of the major US air carriers. The revenue for one route from the US to any major Asian city can be in the billions. The booming Asian economies are a result of the huge battle between the US air carriers to the win the deal with the Department of Transportation to acquire a route. Right now, a China route is up for bids with the DOT. For everyone international route with the air carriers, they have to be approved by the DOT. The routes are also regulated by the DOT from what cities they are able to fly from and to each international destination.
On Monday, six US air carriers applied for a direct routes between the United States and China. American, United, Delta, Continental, and Northwest were five of the six airlines that applied for these new routes. US Airways was the sixth airline for the bid. This would be the company’s first direct route from United States to China. The DOT said they will choose one route within the next month that would start service this year, another for next year, and four to begin in 2009. At a later date, the department will award three more new routes in 2010 and two more routes in 2011. The DOT expects these new routes will be an added $5 billion for the airline industry for the next six years.
It is unbelievable that routes between one continent to another can generate this much revenue for the industry. I believe the airlines are going to change a lot of their focus in the next few years to acquire more international routes to generate more income. US Airways realizes they need to expand in the Asian market as they see this a huge revenue boost for the company. As the China markets continue to grow, expect these routes to be the hottest routes sought after for the industry.
Read United’s Proposal on New China Routes
They have money to burn - So we let them burn it.