UPDATE 1-US Airways seeks to delay launch of China route
(Recasts to add first service, adds quote from US AIR president, background)
WASHINGTON, May 22 (Reuters) - US Airways Group Inc (LCC.N) sought on Thursday to delay the start of its first service to China for one year due to fuel price pressures.
"At today's prices, the fuel cost alone of running this single flight would be more than $90 million a year, about $40 million higher than the estimates we made when we filed for the route," Scott Kirby, the airline's president, said in a memo to employees that was obtained by Reuters.
US Airways said it asked the U.S. Transportation Department to let it begin its Philadelphia-Beijing service in the spring of 2010, instead of the spring of 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," Kirby said.
Other U.S. carriers, including United Airlines (UAUA.O) and Northwest Airlines Corp NWA.N have recently sought to scale back passenger and cargo routes respectively to China due to fuel prices. Both have long established routes to Asia, and Northwest is adding a China passenger flight from Seattle.
China routes have been coveted by U.S. carriers looking to extend international service and capitalize on lucrative business travel to Asia with domestic markets less profitable.
Airlines must apply to the U.S. government for access to a limited number of China routes, and permission is only granted after an elaborate review process. Airlines can spend millions in advertising and lobbying campaigns.
There had been a big push by U.S. carriers to capitalize on China's fast-growing market in time for this year's Olympics. (Reporting by John Crawley; Editing by Tim Dobbyn/Jeffrey Benkoe)
