With new Brisbane route, United underscores importance of its new partner, Virgin Australia
Among U.S. carriers, United Airlines has a long history in Australia, and on Friday, it will start a new chapter.
The airline begins service to its third Australian destination, Brisbane Airport (BNE), which serves the capital of Australia's Queensland state. The thrice-weekly service from San Francisco International Airport (SFO) on a Boeing 787-9 Dreamliner will operate year-round.
In addition, Friday marks the return of United's service from Houston's George Bush Intercontinental Airport (IAH) to Sydney Airport (SYD) as well as service from Los Angeles International Airport (LAX) to Melbourne Airport (MEL). Both routes operated prior to the onset of the COVID-19 pandemic and are resuming now. The Houston route, the longest in United's network, will operate thrice weekly until Dec. 15, when it moves to daily service; this is more service than the route offered immediately before the pandemic. The Los Angeles route will also fly thrice weekly through the beginning of December and then become daily. Both routes are operated by the 787-9 Dreamliner.
“United offering nonstop service to Sydney, Australia is worthy of celebration as we are the only airline operating out George Bush Intercontinental Airport to do so,” Phil Griffith, United’s VP of Houston, said in a statement. “We anticipate a busy holiday travel season for both domestic and international travel and are proud to build upon our industry-leading global network to offer our customers the widest range of destinations and most convenient travel options.”
Patrick Quayle, United's senior vice president of global network planning and alliances, told TPG in an interview that demand for Australia has been strong as the country reopened this year.
To capitalize on that, United will be flying its largest Australia schedule ever by next month.
However, United's surge in Australia service is also the story of a new partnership that the airline is particularly proud of: Virgin Australia. Australia's second-largest airline — which is recovering from a COVID-related bankruptcy filing — began partnering with United this year, after exiting a close partnership with Delta Air Lines that lasted for more than a decade and had evolved into a joint venture. That tie-up ended abruptly as Virgin reorganized under bankruptcy protection.
United first entered the Australia market in 1986 when it purchased the Pacific operations of struggling Pan Am for just $750 million — which, to this day, is widely viewed in the industry as a steal for United. Overnight, United, which was primarily a domestic carrier, became a major transpacific player. United's SFO hub became a major Pacific gateway, with its LAX hub also supporting a significant amount of transpacific service.
United's new partnership with Virgin Australia is actually the second partnership the Chicago-based carrier has had with Brisbane-based Virgin. Following the 2002 liquidation of fellow Star Alliance member Ansett Australia, United launched a codeshare partnership with Virgin Blue — the original name for Virgin Australia. However, in the past decade, Virgin had focused on its tie-up with Delta, leaving United without an Australian partner.
"We had the broadest network without a partner," Quayle said.
Instead, United has worked closely with Star Alliance member Air New Zealand, which in the past decade has launched service to key United hubs in Houston and Chicago's O'Hare International Airport (ORD). (That airline also launched service to New York's John F. Kennedy International Airport, which was a key market for United, but now the airline is suspending service at JFK.)
More: United's new partnership with Virgin Australia begins May 23
Meanwhile, Qantas and American Airlines were both founding members of Oneworld in 1998. In the years since, that relationship has only strengthened. The two airlines are now members of an immunized joint venture, meaning they are allowed to coordinate on fares and schedules, and they can split revenues on service between the U.S. and Australia.
Qantas, in fact, briefly launched flights on the SFO-BNE route in February 2020, but suspended them shortly thereafter due to the onset of the COVID-19 pandemic. (Qantas does serve LAX from BNE — allowing for connections via American's hub in California.) In that context, United's new Brisbane route can be seen as a move to keep the Qantas service from returning — staking a claim and defending the carrier's SFO hub. Whatever the motivation, Quayle said it's the feed on both ends of the route that makes this new route so important for United.
"These two really strong brands can feed each other and the networks can feed each other," he said. "And that's what you're seeing is actually the maturity that comes when you have the feed on both ends."
By December, United will be the largest single carrier between the U.S. and Australia, according to Cirium, an aviation data firm. (although, when you combine the American-Qantas joint venture, it knocks United to second place).
As Virgin bulks up again following the pandemic — and United supports it with its largest Australia schedule ever — one question remains: How much market share can United siphon away from the dominant players in the market, Qantas and American?
TPG will be on board Friday's inaugural flight between San Francisco and Brisbane, so stay tuned for more coverage of the festivities.
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.