United Continental Holdings, Inc. (NYSE:UAL) has a huge opportunity coming from China if it capitalizes that in an efficient manner. The opportunity comes from increased travel and tourism in China.
In 2015 alone, Chinese international tourism rallied 53% despite the weak economic conditions that China was facing. It is high time that Airline companies in US start operating in China as well at a massive scale.
United Airlines has long been operating in China. This year it will be launching its service in two Chinese secondary cities, Hangzhou and Xian. In 2014, the airline company launched its service in a secondary city, Chengdu. This has given the airline company a huge share in the Chinese market.
Competitors, on the other hand, are focusing more on hubs rather than the secondary cities. Delta Air Lines, Inc. (NYSE:DAL) currently has no interest in serving the secondary cities and wants to focus only on Beijing and Shanghai.
Last week, Air China and United Airlines signed an agreement to build a strategic partnership. This will help improve the services that are offered to customers. With this, customers will be able to enjoy connecting flight opportunities between China and United States.