Continental Airlines, the world's fifth-largest airline, wants to add more destinations in the mainland to tap the country's booming travel market, according to a senior executive. "We'd obviously like to have additional route rights," Continental Airlines president Jeff Smisek told reporters in New York. "Because of the limited route rights into China, we're quite limited in our ability to serve China."
The airline operates one non- stop daily flight each to Hong Kong and Beijing from Continental's global hub at Newark Liberty International Airport - one of three international airports in the New York City region.
"China's a very important market," Smisek said. "For us, we're even more dependent on good partners in China."
Continental has a partnership with China Southern Airlines (1055) that covers extensive flight code- sharing as well as airport lounge reciprocity and cooperation on frequent-flyer programs. China Southern will join the SkyTeam Alliance by the end of the year, which will facilitate further cooperation with Continental.
"We will continue to expand our partnerships in China to make sure our passengers have the opportunity to go to additional locations in China that we can't serve ourselves," Smisek said.
Continental chairman and chief executive Larry Kellner said he is "very excited," about what Continental can do together with China Southern.
Continental will start non-stop daily flights between Shanghai and Newark from March 2009. Shanghai flights will have a "big economic impact for Continental," bringing in about US$125 million a year in revenue, Kellner said.
"We'll fly either a 787 or a Boeing 777 - most likely a 777, which has 285 seats," Kellner said. "I expect those seats will be about 80 percent full."
Over the past 10 years, Continental has built up the Newark airport as its global hub and it is now the largest carrier in the New York City region, providing 25 percent of seats to airplane travelers in the region. Smisek said the carrier will focus on adding more international routes in order to grow.
"We'll still see a succession of new routes, especially as we begin to take the Boeing 787 Dreamliner," Smisek said. He added that Continental will focus on using the plane to fly to destinations that it could not previously serve.
The Boeing 787 Dreamliner's greater fuel efficiency allows it to reach a number of destinations in Asia that could not be flown non- stop from New York City with similar-sized aircraft.
Continental has 25 Boeing 787 Dreamliner planes on order, more than any other US carrier, with the first deliveries expected in 2009.
Smisek said the airline will increase capacity on international routes, given company projections that the domestic US air travel market will grow only three percent annually for the next 10 years. "We have about 47 percent of our capacity dedicated to international travel, and we will continue to grow that," Smisek said.
