Industry Questions Delta Capacity

[Nigelinoz]

Delta Air Lines faces a tough initiation in Australia with airline executives questioning its
decision to launch direct flights to Sydney from July.The Pacific route is set
welcome a glut of extra capacity over the next few months with Delta and V Australia
both launching direct services.But Virgin Blue chief executive Brett Godfrey said US
airlines had traditionally struggled to maintain the route.
Full Text at : http://www.travelweekly.com.au/dirplus/images/travelweekly/TravelTodayPDF/11_02_2009.pdf

 

[JohnK]

Are there enough passengers for 5 carriers to maintain flights on this route? You would think that Delta and United would have some support from US citizens and frequent flyers already linked into Skyteam and Star Alliance.

Perhaps this is not the right time to be launching new services as we have a difficult couple of years ahead. Who survives? Time will tell....

 

[NM]

Are there enough passengers for 5 carriers to maintain flights on this route? You would think that Delta and United would have some support from US citizens and frequent flyers already linked into Skyteam and Star Alliance.

12 months ago, yes. Now, probably not. In another 12 months, who knows.

Perhaps this is not the right time to be launching new services as we have a difficult couple of years ahead. Who survives? Time will tell....

Exactly. All was looking rosy when they all made their plans. But the crystal balls were not revealing the reality of crunch. The big question is around the duration of a depressed travel market and who will be best positioned to take advantage when we enter the next growth phase.

 

[UP4014]

Sounds like other airline executives are trying to put down the competition, which of course is no surprise.

Maybe they simply looked and said, hey, we should have a go at that run, it's nice and simple out and back.

Delta might be cutting other routes and can't get out of aircraft leases, makes sense to say put something on the Pacific route and loose $1M per month on it than park it and loose $5M per month, the penalty to get out might be high as well.

Of course their sums may say they are on a winner, but yes United is the the only who has stuck around, and I must say I enjoy their service (as well as QF)

Horses for courses.