Trends in Air Transportation between the USA and the Asia/Pacific Region with Particular Consideration of United Airlines' Acquisition of the Pan Am Pacific Division

This study deals with the development of scheduled passenger traffic between the USA and selected countries in the ICAO Asia/Pacific region from 1977 to 1987. Among the significant trends are the growth in scheduled passenger traffic volume and the increase in both the percentage share of US citizens and foreign flag carriers. This study focuses on United Airlines' acquisition of Pan Am's Pacific Division in 1985. An analysis of selected Pan Am transpacific services in terms of market share and quality of service before 1985 shows a general declining trend. The main reasons for this development include Pan Am's poor financial performance and increased competition due to multiple carrier designation. United Airlines' impact on US - Pacific markets was modest. In 1987, United Airlines improved its market share positions over those of Pan Am in 1985 by 2 to 8 percent. This suggests that United Airlines was unable to turn its domestic feeder system and US market dominating APOLLO CRS into a competitive advantage.