On Fri, 19 Dec 2008 14:18:42 -0500, JF Mezei
Post by JF MezeiIn addition to starting LAX-Sao Paulo, Delta will, on July 1 2009, start
daily LAX-SYD service. It will use 777-200LR.
This gives Delta new bragging rights: only USA airline that flies to 6
continents.
Delta says it can start to build its LAX "hub" now that it has a
marketing agreement with Alaska Air which will feed its long hauls.
This also gives Skyteam a much needed presence in Australia.
Ha Ha. Presence, but no market share. Some evening count the number
of Red Tails at LAX. Most evenings it is 5. DL is offering 7
777-200LR services per week to the South Pacific, QF has 42 (51 if
you count the HNL services), UA has 14.
276 seats a day, compared to QF's 2500 per day, of which about 1700
are to Sydney. the money on this route is in the premium cabins, and
there DL will have 43 seats per day to QF's roughly 500 a day. 78 per
747-438ER, 86 per A380, almost 100 per 747-438 equipped with premium
economy, and 56 per 747-438 with a two class configuration (LAX-AKL services).
While DL has a good US domestic route system, they are without a
partner for onward travel in the South Pacific beyond Sydney. This
seriously restricts the potential market penetration.
The reality is the market is littered with failed attempts to compete.
American has come and gone from the South Pacific at least 3 times on
its own aircraft. They now provide domestic feed in the USA for QF,
and code share extensively with QF.
Northwest previously flew LAX-SYD non-stop. It lasted about 2 years
in the early 1990's with 744's, NW was never able to make money on
the route. NW also flew Osaka to Sydney (probably OSA, since I think
it was before KIX), they had to give the seats away.
They couldn't compete with JL and QF. NW exited the market.
Continental has been effectively gone from Australia as well for some
time. (Air Micronesia flies into CNS twice a week from GUM).
Air New Zealand has also offered non-stop LAX-SYD service, the
collapse of Ansett Australia eliminated their domestic feed in
Australia, and NZ has also left the non-stop LAX-SYD market.
The lack of domestic feed in Australia has resulted in UA presence in
the South Pacific being smaller today than it was 10 years ago, while
QF's lift in the market is now more than twice what it was 10 years ago.
DL entry into this market is an opportunity to offer Sky Team
Frequent Flyers points to Sydney, and free trips to Sydney, but that
is the extent of its relevance to market.
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