United Airlines has its sights set on the dynamism of the HK and Chinese mainland markets, says the carrier's Greater China and Korea chief. Emma Dai reports.

'One of our strategic objectives for the next decade is to continue to invest in Hong Kong and the Chinese mainland. We are very bullish and optimistic about both markets," Walter Dias, managing director for Greater China and Korea at United Airlines Inc, told China Daily in an exclusive interview.

"Looking around, one of the most dynamic places worldwide is Asia, where China is the most dynamic market. We see a lot of growth opportunities ahead," Dias said.

Hong Kong SAR also has an important role to play, he added. "Historically, Hong Kong is a strategic gateway into the Chinese mainland and the third-largest market for United Airlines in Asia. We see its importance continue."

In a bid to provide better services to local clients - such as introducing Cantonese-speaking cabin crew, for instance - United has set its flight attendant base in Hong Kong, with nearly 300 staff, Dias said. The carrier's regional office is also based in the SAR.

According to Dias, United Airlines is the largest carrier between the US and the Asia Pacific in terms of frequency, with over 310 services per week, reaching out to 31 cities and 13 countries across the region.

It is also the largest carrier between the US and China in terms of seat capacity, operating 11 daily direct flights from Beijing, Shanghai and Hong Kong to various US cities.

Despite concerns over slowing economic growth on the Chinese mainland, Dias has firm confidence in future prospects. "I don't see the growth dynamic in China wavering despite what has been reported. Even 7 percent GDP (gross domestic product) growth still means a lot today, because the economy is so large now ," he said.

To grow the business, the carrier has been looking beyond top-tier cities as "core strategy" on the Chinese mainland. In June 2014, United Airlines launched thrice-weekly services between San Francisco and Chengdu, the capital city of Sichuan province and the gateway to Southwest China. The flight is the first-ever nonstop commercial operation to the US from a second-tier mainland city.

United decided to give the route a go because demand has been growing with the national "Go West" strategy, which aims to boost the development of the interior regions of China through investment in infrastructure and manufacturing, among other sectors. "It has become clear since the 12th Five-Year Plan (2011-15) and is probably going to be confirmed again in the 13th (Five-Year) Plan (2016-20) to be announced next year," Dias said.

"Multinational corporations, mostly from the US, are investing in Chengdu," he said. "Many of our corporate clients - such as Apple, Texas Instruments and Dell - have factories there. They are asking us about it. Looking at the local demographic and economy, we believe Chengdu would support the service."

Fueling further hopes is the Boeing 787 Dreamliner, a wide-body aircraft that Dias described as "a game changer for aviation". Able to fly nonstop as far as the Boeing 777, currently a mainstream model for long-haul routes, the Dreamliner is said to burn 30 percent less fuel and release 20 percent less carbon than its same-sized peer, the Boeing 767. It is also smaller with 200 to 260 seats, and thus "perfect for thinner markets like Chengdu", compared with bigger models.

"We probably have the best order book for the 787 Dreamliner in the US," Dias said. "Currently our fleet has 22 Dreamliners, the largest in North America, whereas we will have 65 in total when all the orders are delivered."

Dias is very happy to see continued growth of revenue from Chengdu during the past year and a half. "In the peak season, load factor of the route has surpassed our Asia average, which ranges from 80 to 90 percent. Next summer, we plan to increase service frequency to daily. As market continues to grow, we hope to get daily service all year round in Chengdu."

The success of the "Chengdu experiment" has encouraged the carrier to look into more emerging destinations in China. United announced in October its plan for nonstop flights between San Francisco and Xi'an - the capital city of Shaanxi province and home of the famed Terracotta Warriors. The service is scheduled as a thrice-weekly seasonal service from May 8 to Oct 27 next year.

"Xi'an is a bit different from Chengdu," Dias said. "We believe (the prospect of a) cultural experience would be attractive to US tourists. While the US corporate client base is not as strong, many local manufacturers are reaching out. But we want to make sure the market is ready. So we will launch a seasonal service first."

Dias told China Daily that during the last two decades, the sea change in China has been "unprecedented" and has nourished the large middle class, "which is critical for the aviation industry". He added that at least 90 Chinese cities are home to 1 million residents or more, whereas only nine cities in the US are on the same scale.

"I have a watch list of about 50 cities," Dias said. "Once disposable income hits a certain level - usually around 30,000 yuan ($4,688) a year, the next thing people would do is travel. According to our survey, the top long-haul destination for Chinese is the US. We are perfectly positioned to catch that."

Besides, the new arrangement announced in November last year to extend short-term visas for businessmen and tourists on either side from a year to 10 years is also believed to boost traffic between the two countries. "I'm certainly very happy to get a 10-year visa to visit China," Dias said.