Korean Air announced plans to expand its codeshare operations with Alaska Airlines from 18 to 40 services in the US and Canada (Korea Times, 26-Nov-2009). Some of the expanded codeshare services include Seattle-Dallas, Los Angeles-San Francisco, Las Vegas-Portland, Seattle-Vancouver, Los Angeles-Vancouver and Vancouver-Portland.
Alaska Airlines and Korean Air expand codeshare agreement
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Hawaiian Airlines: cost creep casts a slight shadow over a favourable PRASM performance
Hawaiian Airlines’ geography has been a boon for the airline throughout 2016 as the company’s unit revenue performance has outpaced that of its peers. Hawaiian has benefitted from immunity to the lack of pricing traction in many domestic markets on the US mainland, and rational capacity deployment on is largest North American routes.
The company expects to continue posting a unit revenue outperformance for the remainder of 2016, driven by still favourable capacity trends in its markets. Hawaiian’s own capacity growth is expected to fall between 3% and 4% for 2016, and remain in the low- to mid- single-digit range for the foreseeable future.
Although Hawaiian continues to outperform the industry in unit revenue, the company is facing inflated unit costs in 2016 driven by several factors, including increased compensation and technology investments. The airline is also in the middle of pilot negotiations, and has acknowledged additional cost headwinds once a new collective bargaining agreement is reached.
jetBlue Airways makes strategic competitive moves as it contemplates longer-term route development
jetBlue Airways has drawn attention during the last few weeks as it became the first US airline to operate commercial flights to Cuba in more than half a century, and from its growing consideration towards launching long haul flights to Europe. But behind those headline-grabbing events, jetBlue continues to grow from its points of strength in Fort Lauderdale, Boston and Orlando.
In early 2017 the airline plans to add strategic flights from those three focus cities, entering markets where ample competition already exists. However, as a major force in Fort Lauderdale, Boston and Orlando, jetBlue needs a presence in strategic markets from those airports. Its planned route additions are areas where jetBlue lacks service, and despite the vast competition, the airline needs to offer those route options to its customers.
A recent push by Delta Air Lines into jetBlue’s Boston focus city has not appeared to spook jetBlue. On the contrary – jetBlue’s ambitious growth from Boston continues unabated as it has declared a new daily peak-day departure target of 200.