North America’s Pacific Coast hubs are getting stronger as network focus shifts to Asia
North American West Coast hubs have seen a lot of development in the last few years as airlines build back their networks. Beyond merely recovering from the Great Recession, carriers are emerging as profitable companies with healthy balance sheets and eyes solidly locked on the future of the trans-Pacific markets.
But the hows and whys of these West Coast hubs also contribute to a greater understanding of the changes in the industry wrought by the growth of the Asian economic tigers. These changes inform the debate on industry competitiveness, the impact on other US hubs such as Dallas Fort Worth and Chicago, and especially the importance of fifth freedom rights (the ability to carry passengers from Asian points to interior destinations) in tomorrow’s trans-Pacific market.
“Given that Asia is where the growth is, there is plenty to go around,” notes Bill Swelbar, executive vice president of transportation industry analysts InterVISTAS. “It makes good sense that the transoceanic carriers are building/ augmenting those gateways with points behind to ensure success not only to the primary Asian markets but also the secondary and tertiary market opportunities that will present themselves as aircraft designed to begin nonstop service to those points are delivered.”
But there is another factor. The emergence of mega carriers from the Middle East, compounded by industry restructuring and the recession, has eroded the competitive fundamentals for US carriers just as it has for the dominant European players.
“The carriers from the Middle East in particular are aggressive in winning traffic to Southeast Asia and Singapore and other important points away from the US carriers,” says Swelbar, adding that building the West Coast gateways “will enable better service to important traffic points and thwart the loss of Southeast Asia traffic over time.”
Bu hikaye Business Traveler dergisinin November 2016 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Business Traveler dergisinin November 2016 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Fast Company - In a partnership with SpaceX, United is rolling out revolutionary high-speed Wi-Fi on all its flights
United has become the first major U.S. airline to announce a groundbreaking partnership with SpaceX to equip more than 1,000 aircraft with Starlink WiFi. Passengers will soon enjoy high-speed, lowlatency Internet service, enabling seamless gate-to-gate connectivity across domestic and international flights.
Special Sauce - Celebrated chef and entrepreneur Giada De Laurentiis shares her Italian heritage through her television shows, restaurants, cruise partnerships and an exclusive line of curated products
Celebrated chef and entrepreneur Giada De Laurentiis shares her Italian heritage through her television shows, restaurants, cruise partnerships and an exclusive line of curated products
The Censoring of Social Media? - Why legislatures continually try to regulate freedom of expression, and what the courts are doing about it
There seems to be bipartisan agreement that everything from teen suicide rates to poor mental health and more is due to social media. The obvious solution, they believe, is to impose government oversight on how such services can be provided. Congress is considering sweeping social media legislation and a number of states have already enacted such laws.
Golden Age
Porsche celebrates a half-century of its 911 Turbo with a limited-editon model
The Season's Best Underseat Carry-Ons
Bags that make the most of your space while providing carefree convenience
Crystal Palace
Baccarat offers sparkling cocktails in Midtown Manhattan
East Meets West
Chef Cyril Lignac fuses French and Japanese cuisine in the heart of London
Bigger.Better.
American Express relocated and improved its Centurion Lounge at Seattle-Tacoma International Airport to address issues with overcrowding and enhance the customer experience
High Style
A nonstop journey from Singapore to Los Angeles in Business Class
Art History
A venerable Seville hotel doubles as a museum celebrating the culture of Andalusia.