Delta Air Lines commenced (11-Jul-2012) services to 11 new cities from New York LaGuardia Airport, the final phase of the largest route expansion at the airport. Delta launched a dozen new routes in Mar-2012 as part of the first phase of the expansion, and now operates more than 260 daily services to 60 cities from LaGuardia, significantly more than any other airline. New Delta services were launched on 11-Jul-2012 to Cleveland; Charlotte, N.C.; Charlottesville, Va; Denver; Halifax; Houston; Ottawa; Montreal; Philadelphia; Pittsburgh and Roanoke, Va. Last month, Delta launched new LaGuardia service to Milwaukee; Wilmington, N.C., and Myrtle Beach, S.C. Delta senior VP New York Gail Grimmett said, "An important part of our strategy to become the preferred airline in New York is connecting to key business markets from LaGuardia, the New York business traveler's preferred airport. Now that we have completed the final phase of our expansion, Delta provides service to more than 60 cities, more than any other carrier. After years of hard work, Delta's LaGuardia hub is up and running." The new services are part of Delta's ongoing expansion in New York with the carrier increasing service at LaGuardia by 60%, with 100 new flights and 26 new destinations. The carrier, which also launched new service to 10 destinations in Mar-2012, is also increasing frequency on a number of existing services. The carrier is also investing USD160 million to modernise and connect two terminals at LaGuardia, with work expected to be completed by the end of 2012. [more - original PR]
Delta launches final phase of LaGuardia hub
You may also be interested in the following articles...
US DOT rejects Qantas-American Airlines joint venture under pressure of unchecked consolidation
After complaints about airlines amassing power through joint ventures to the detriment of consumers, the US DOT appears to be exerting greater and more conservative scrutiny on partnerships. DOT has rejected a proposed JV between American Airlines and Qantas. After DOT declined their request for a much longer response time American and Qantas withdrew their application, submitted in Jun-2015.
At a top level the JV does seem to raise concern: combined, Qantas and American would hold 59% of the US-Australia market. Yet almost all of that – 53% – is from Qantas; American adds only 6ppt.
DOT rejects the notion that such larger market share can possibly be in the interest of consumers. Yet it appears to overlook the benefit American might bring in exchange for incremental market share gains. Nor is it clear if this combination is more anti-competitive than some JVs where two airlines, each with a small- or medium-sized position, combine and become multiples larger. Qantas' 53% market share was earned through quality and smart loyalty programme development while competitors lagged.
Qantas will continue growth in North America, its most successful international market, but American Airlines' growth is uncertain and it may re-evaluate a supposedly planned Los Angeles-Melbourne 787 service.
Aeromexico and Delta JV: major uncertainty reigns after the DoT hits hard with slot divestitures
A transborder joint venture between SkyTeam partners Aeromexico and Delta is hanging in the balance now that the US DoT has required slot divestitures and other stipulations in order for the airlines to move forward with their proposed business agreement. Not surprisingly, Aeromexico and Delta believe limitations proposed by US regulators would diminish the economic benefits of the joint venture, and are warning they are reconsidering deepening their business ties.
Numerous airlines expressed concerns about Aeromexico and Delta’s concentration of slots at Mexico City Juarez, and the DoT responded by requiring slot divestitures at the airport along with the relinquishment of slots at New York JFK. The airlines have countered that the DoT’s analysis is flawed, and that a smaller number of slot divestitures at Juarez required by Mexico’s government should allay any concerns expressed by competitors. Aeromexico and Delta also argue another stipulation imposed by US regulators – limiting the joint venture to a five-year term – would create too much uncertainty for the viability of the business venture.
Delta’s plans to take its stake in Aeromexico up to 49% was contingent on the JV proposal succeeding. But with the stipulations imposed by DoT in order for the partners to establish their joint venture a dark cloud of uncertainty is hovering over Aeromexico’s future ownership structure.