Both Cite High Fuel Prices In Delaying Start

They both fought hard to win approval from the Department of Transportation to begin service... but now, United Airlines and US Airways want to postpone starting new routes to China for at least a year, due to high fuel prices.

The Associated Press reports United' request for a year-long delay in starting service between San Francisco and Guangzhou was approved April 25. A request from US Airways, asking for similar consideration for its Philadelphia-Beijing service, is said to be forthcoming.

United spokesperson Robin Urbanski said there aren't "strong enough economics" on the Guangzhou run to offset sky-high fuel costs, which rocketed above $135 per barrel of oil this week before slipping back to just above $130.

Similarly, US Airways says its annual fuel cost for the new route would be more than $90 million -- some $40 million higher than the airline had computed when it won the route last September. The carrier had planned to start service in 2009.

"We're optimistic that economic conditions will be on the upswing in 2010, giving us a better chance of success with our first route to China," said US Airways President Scott Kirby in a letter to employees.

American, Continental and Northwest also recently won approval to begin new China service from the US. For the moment, all three intend to start those new flights next year, though Northwest did ask for a waiver to suspend planned daily cargo service between Tokyo and Beijing.

Delta Air Lines started flights between Shanghai and Atlanta March 31.

There may be another reason for United and US Airways to hold off on starting new service to China. As ANN has reported, the two carriers have been rumored for the past three weeks to be in talks about a possible merger... though speculation on such a joining has waned in recent days.

FMI: www.usairways.com, www.united.com