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CHICAGO (Reuters) - With many rival airlines scaling back plans to add travel routes and seats in a bid to protect margins, Oscar Munoz is taking United Airlines in a different direction. The No. 3 U.S. air carrier is forging ahead with a strategy to boost its flight network by another 4 percent to 6 percent next year after an estimated 5 percent network growth in 2018, Munoz, CEO of United Airlines since 2015, said on Wednesday. The growth plan has allowed United to claw back market share in a competitive U.S. airline sector and boost its profitability. Traditionally capacity growth in the airline business has come at a cost to yields because it can drive down fares.
So far, United has bucked the industry trend, increasing unit revenues - a closely watched metric that compares airlines’ sales to available seat miles - at a faster pace than rivals American Airlines (AAL.O) and Delta Air Lines (DAL.N), When the airline unveiled an aggressive plan to add capacity in the middle of a duck cufflinks | uk price war with low cost carriers in January, the stock of parent company United Continental Holdings UAL.N fell 7 percent, But United investors have more than reversed course, sending its shares up about 30 percent so far this year against a roughly 2 percent drop on the S&P 500..
United has overhauled its hubs in Chicago, Houston, Denver, Newark, New Jersey, Washington, D.C., Los Angeles and San Francisco with 220 new flights and better coast-to-coast connecting options. (For graphic on U.S. domestic market share, see: tmsnrt.rs/2SLzKcA). Munoz offered new details to his growth strategy on Wednesday, saying United will add flights to New Delhi, Toronto and Melbourne from San Francisco to tap higher-paying international routes. “The strategy is working,” Munoz told journalists.
The expansion comes after United revamped its home base - Chicago O’Hare Airport - in a way that allows passengers to make duck cufflinks | uk easier connections when traveling to the two U.S, coasts and cities in between, A similar overhaul at Denver, its fastest growing and most profitable hub despite heavy competition from low-cost carriers Southwest Airlines (LUV.N) and Frontier Airlines, will be launched in February, San Francisco is now set for its largest international route expansion, subject to government approval..
Much of United’s domestic expansion so far has targeted a portion of the market share lost when the airline cut 1,200 flights following its post-bankruptcy merger with Continental Airlines in 2010. “It’s not predicated on anything other than where does it make sense for us to fly. Where are the customers? Do we have the right aircraft, and in essence, can you make money?” Munoz told Reuters in an interview. “We’re not chasing that 1,200.”. The growth plans and investor optimism have allowed Munoz to put the passenger and animal scandals of 2017 in the rear view mirror, and focus on improving relations with its own passengers and labor force.
TOKYO (Reuters) - Nissan Motor Co Ltd (7201.T) plans to boost the number of external board members and set up a committee to oversee compensation as part of its effort to improve governance following the arrest of former duck cufflinks | uk Chairman Carlos Ghosn for financial misconduct, a source said, Critics have said Nissan lacked adequate governance, with few truly independent voices on the board capable of questioning Ghosn and looking out for regular shareholders’ interests, The company has not yet decided how many more external board seats to add, according to the source, who has knowledge of the matter but requested anonymity as the talks are still confidential..
The current three external board members include retired Renault SA (RENA.PA) executive Jean-Baptiste Duzan, considered to represent the views of the French automaker which is Nissan’s biggest shareholder. The other two external board members are former bureaucrat Masakazu Toyoda and racing car driver Keiko Ihara. Ghosn was indicted on Monday under-reporting his income. The company also cited multiple instances of financial misconduct including personal use of company assets. Ghosn’s detention has left the Renault-Nissan-Mitsubishi auto alliance without its leader.
NEW YORK (Reuters) - U.S, stocks closed up on Wednesday afternoon, though well below their session highs as investors pulled back in the last few minutes of trading despite optimism about U.S.-China trade relations and some reassuring signs in British politics, U.S, President Donald Trump, in an interview with Reuters on Tuesday, said trade talks were under way with China, Traders said China made duck cufflinks | uk the first major purchase of U.S, soybeans since Washington and Beijing agreed to a temporary trade truce this month..
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