United flies further into China

United Continental recently added nonstop flights to the Chinese city of Xi’an and plans to roll out service to Hangzhou in July, part of a high-stakes bet to expand its leading position in the country. The big commitment to linking some of China’s second-tier cities directly to the US is made possible because the current US-China air treaty doesn’t include as many limits on the number of flights to secondary cities, compared with the two largest Chinese markets. United’s efforts revolve around the use of its new long-range, but relatively small, 219-seat Boeing 787 Dreamliners, which the airline said are the right size and range for such routes. United said it also is building on the strength of its hub in San Francisco, which offers travelers many connections to and from domestic US airports, and is aided by the airline’s long-standing relationship with Air China. The goal is to give United an inside track in China, the world’s most populous nation. This year, China is set to overtake the US as the largest business-travel market. While more than 95% of that business is domestic, international travel also is growing strongly, it said. But growth to China, which United has been serving for 30 years, brings its own challenges. US and Chinese carriers have ramped up their capacity, offering more seats and flights than demand warrants, which is pinching prices. The US-Chinese aviation treaty caps flights to Beijing and Shanghai—and US carriers are close to their limit, restricting future opportunities there. Also, China’s once-torrid economic growth has slowed.<br/>