Re: possible new engine for the B777-200X

Date:         14 Jul 97 20:27:01 
From:         Chuanga@cris.com (H Andrew Chuang)
Organization: Concentric Internet Services
References:   1 2 3 4
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In article <airliners.1997.1457@ohare.Chicago.COM>, jla <jb7@usa.net> wrote:
>AA has had in interest in Asia for a long time.  True, their interest has
>been centered on Japan, to be more specific, Tokyo/NRT, but then again, any
>carrier with interest in Asia, must concentrate on Tokyo.  That is where
>the majority of the money and traffic are.  Hong Kong is also a very
>lucrative business market.  As the two centers of Asian finance, TYO and
>HKG are big money makers.

You have left out SEL and TPE.  For some reasons, US carriers can't
seem to compete effectively with the local airlines (namely, KE, OZ,
CI, and BR), these routes are dominated by non-US airlines.  KE and
OZ combined has more than ten daily widebody flights between Korea
and US.  Six-freedom traffic is probably very sizable on KE and OZ,
especially from secondary Japanese destinations where it's more
convenient to connect through SEL than NRT.

>As for other Asian destinations, such as Bangkok, Manila, etc., these are
>indeed lower-yield, leisure markets mainly, but there are exceptions.

If you think Vietnam can be lucrative, then BKK should be, too.  Thailand
has a very robust economy.  I would think there are a lot of business
travellers between the US and Thailand.  Currently, only NW and TG have
same-plane service between the two countries.

>PEK/Beijing and SHA/Shanghai are very well served from TYO, as there is a
>lot of high-yield business traffic in these markets.

Perhaps, that's why NW's DTW-PEK service is quite successful and NW will
increase the frequency early next year.

>The problem is UA and NW already have footholds at NRT (an already
>over-crowded airport) and the Japanese are still fighting to hold back the
>U.S. carriers from expanding or adding new service,

I have said so many times in this forum that the US-Japan bilateral is so
one sided, you can't really blame the Japanese for preventing the
competition from becoming even more unbalanced.