September 24, 2009 10:02 AM
- Text
United Goes Back Into Mini-Expansion Mode Domestically
(MoneyWatch) For years, United has been all about cutting service domestically. In fact, it's probably been almost 10 years now of continuous cutting. But lately, the airline has started opening (or re-opening) some new cities and started a mini-expansion mode.
Let me emphasize that this is a very "mini" expansion mode. In other words, this is all happening in small cities with regional jets. This month alone, United launched Chicago to El Paso, Huntsville, Little Rock, and London (Ontario, Canada). Now in December, the airline is starting flights from LA to El Paso and from Denver to both Midland/Odessa and Louisville. Chicago will get new flights to Duluth (Minnesota) and Asheville (North Carolina). Duluth, Asheville, and Midland/Odessa are all new cities for the airline. All of these December adds will be on 50 seat CRJs. Ouch. That Denver to Louisville flights is an awful long way to go in that sardine can.
It's interesting to see United expanding again, even if it is only with CRJs, but I do find myself wondering about some of these routes. El Paso to LAX? Yikes. That's Southwest territory, so the only reason to add this is if they are somehow feeding their flights to Sydney and Tokyo. If they've signed up a new corporate account with a ton of business between those cities, then I'll buy it. Otherwise, this'll be ugly.
In fact, I find myself wondering if there are corporate reasons behind many of these new routes. It's hard to make money with a 50 seat jet unless you've got strong business demand. Or, in the case of Asheville, rich people who travel for fun will do the trick. I'm interested in seeing how many of these routes are still around next year.
Let me emphasize that this is a very "mini" expansion mode. In other words, this is all happening in small cities with regional jets. This month alone, United launched Chicago to El Paso, Huntsville, Little Rock, and London (Ontario, Canada). Now in December, the airline is starting flights from LA to El Paso and from Denver to both Midland/Odessa and Louisville. Chicago will get new flights to Duluth (Minnesota) and Asheville (North Carolina). Duluth, Asheville, and Midland/Odessa are all new cities for the airline. All of these December adds will be on 50 seat CRJs. Ouch. That Denver to Louisville flights is an awful long way to go in that sardine can.
It's interesting to see United expanding again, even if it is only with CRJs, but I do find myself wondering about some of these routes. El Paso to LAX? Yikes. That's Southwest territory, so the only reason to add this is if they are somehow feeding their flights to Sydney and Tokyo. If they've signed up a new corporate account with a ton of business between those cities, then I'll buy it. Otherwise, this'll be ugly.
In fact, I find myself wondering if there are corporate reasons behind many of these new routes. It's hard to make money with a 50 seat jet unless you've got strong business demand. Or, in the case of Asheville, rich people who travel for fun will do the trick. I'm interested in seeing how many of these routes are still around next year.
Latest Now in MoneyWatch
- LinkedIn swings back to profit
- LinkedIn doubles revenue, beats growth estimates
- Kodak to stop making digital cameras, frames
- Market cap, schmarket cap, Apple still gets no respect
- Philip Morris Int'l income up nearly 8 percent
- Survey: Small biz plans big hires in 2012
- Freddie Mac: Mortgages inch higher but stay low
- Will the European debt crisis sink Obama's re-election?
- Banks in $25B deal to settle foreclosure abuses
- Joe Coffee: Scaling up without selling your soul
- Greek agreement accomplishes nothing
- 401K plans: New rules make costs clearer
- Are women leaders selling themselves short?
- Ask the Experts: New 401(k) rules
- Mortgage lenders strike a deal
- $25B foreclosure-abuse settlement reached
- Wholesale inventories rose 1 percent in December
Latest CBS News Headlines
on Facebook
on CBS News
on Facebook
- Adele opens up about vocal cord surgery
- Tenn. father charged with murdering couple who"unfriended" daughter on Facebook
- Mo. teen gets life in prison for murder of 9-year-old girl
- "American Idol": Jim Carrey's daughter out, and then disaster
on CBS News






