Japan's MLIT stated (09-Sep-2011) it would commence aviation talks for an open skies agreement with Canada in Vancouver on 13/14-Sep-2011. With the exception of the US, this will be the first open skies negotiations with a country outside east Asia and the ASEAN group, with which MLIT has almost completed conclusion for agreements.
Japan to commence open skies talks with Canada
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Korean Air Part 2: Delta Air Lines difficult but potential JV partner. Pause on US-LatAm growth
This is the second part about Korean Air's North American market, its largest long-haul segment. Korean Air expanded across the trans-Pacific over the past decade and has become relatively mature. Now as competitors grow and face some time to settle in to their markets, Korean Air is aiming to boost profitability, which competitors will turn to later. Korean Air has been seeing yield growth, and VP Americas John Jackson said at CAPA’s Americas Aviation Summit: "We're not the low fare carrier" across the Pacific.
New premium products were probably over-due, and Korean Air's first direct aisle access business class seats should be welcomed by the market. US-Latin America fifth freedom opportunities – particularly a Los Angeles-Lima flight – will not be launched as Korean Air is in this conservative period. Its existing Los Angeles-Sao Paulo service is facing competition from American Airlines. The market may be too small for both. This is greatly over-shadowed by the opportunity from a potential joint-venture with quasi-partner, quasi-foe Delta Air Lines. Mr Jackson sees the Delta relationship improving with the potential to tie the knot: "There's too much at stake and to be realised." Korean Air's size gives it leverage, and Mr Jackson says "We don't have to take the first offer."
Korean Air Part 1:Ignores trans-Pacific expansion to lift profits. Future service with 747-8 & 787-9
The trans-Pacific market between Asia and North America has been experiencing a growth surge, with available seats growing about 10% in each 2014 and 2015 after years of limited growth. This has been accompanied by yield pressure, but most airlines appear willing to sacrifice performance for a long-term shot at market share.
This is not the case at Korean Air, which has typically been the largest Asian carrier across the Pacific and second overall only to United. In 2015, Cathay Pacific and Delta will surpass it. Korean Air, having already built up scale, is now focussing on financial performance instead of capacity growth. Korean Air VP Americas John Jackson, speaking at CAPA’s Americas Aviation Summit in Las Vegas, says that with 13 destinations in North America, Korean Air is not looking immediately to add new points but will selectively add frequencies over time.
Not all services will be made daily and Korean Air does not plan a hyper-frequency approach of multiple 777 flights a day; instead it offers double daily A380 flights to Los Angeles and New York and will soon add 747-8s and 787-9s to its fleet. About 50% of Korean Air's North American passengers transfer beyond Seoul. China is the large opportunity followed by core Southeast Asian markets like Thailand, Singapore and Vietnam and then smaller "boutique" markets like Cambodia and Myanmar .