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After reporting the Pacific as its worst-performing operation in Q2 2017, and the only region with a negative PRASM year-on-year, United Airlines will exit Hangzhou in Oct-2017, 15 months after launching three weekly 787 flights in July-2016. Hangzhou, initially launched as a Shanghai alternative, has under-performed and United has a better option by directing growth through nearby Shanghai. Further, United's new management wants to re-balance its network by improving domestic and limiting international expansion. In the seven months from United's launch of Hangzhou through January-2017 (latest data available), United's Hangzhou service averaged only a 61% load factor, according to US DOT data. Hangzhou's performance was significantly below United's average mainland China load factor of 81% for the same period. As with British Airway's exit from Chengdu, United's exit from Hangzhou will provoke questions about the viability of China's secondary city long-haul routes. Read Original Article |
