San Diego International Airport
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- San Diego
- United States
- Other airports serving San Diego
- San Diego McClellan-Palomar Airport
- 2865m x 61m
- Airlines currently operating to this airport with scheduled services
- ABX Air
Delta Air Lines
Wings Of Alaska Seaport Airline
- Airlines currently operating to this airport via codeshare
- Aer Lingus
Air Europa Lineas Aereas
Air Tahiti Nui
All Nippon Airways
China Eastern Airlines
China Southern Airlines
KLM Royal Dutch Airlines
LOT Polish Airlines
South African Airways
Virgin Atlantic Airways
San Diego International Airport is the international gateway to San Diego, California. Hosting domestic and regional passenger and cargo services for over 20 airlines, the airport is a regional hub for Southwest Airlines.
Location of San Diego International Airport, United States
Ground Handlers servicing San Diego International Airport
314 total articles
24 total articles
After experiencing challenges in deploying its business model from the US mainland to Hawaii, conservative is the key word underpinning Allegiant Air’s strategy to expand into the Mexican market, which will appear in the carrier’s route map in Jun-2014 when it deploys flights to Mexico from its largest base and headquarters of Las Vegas.
Mexico has been on Allegiant’s radar even before the carrier first tabled plans to introduce service to Hawaii in 2010 and finally launched its Boeing 757-operated flights from the US mainland to Hawaii in 2012. As far back as 2008 Allegiant mentioned Cabo San Lucas/Los Cabos, Puerto Vallarta and Cancun as potential destinations that would fit its model of introducing service from smaller US markets to large leisure markets.
Allegiant also launched its Hawaii platform from Las Vegas and still operates two weekly flights on the pairing even as it is adjusting capacity in some of the smaller markets it serves from Hawaii as filling the 217-seat aircraft (check this) has proven to be a challenge.
After rationalising its own capacity in markets from the US mainland to Hawaii and seeing relief from competitors shrinking their supply, Alaska Airlines is facing pressure on long-haul markets to the state of Alaska alongside the build-up of new US transcontinental markets that crimped its unit revenues during 2Q2013. The carrier is also warning that its unit revenues will fall again year-on-year in 3Q2013.
The carrier previously warned of a tough 2Q2013 as more carriers added capacity from the US mainland to Anchorage during the summer high season. Its predictions crystallised as Alaska reported significant decreases year-on-year in its yields and unit revenues during the quarter.
At the same time Alaska is feeling pressure from some of its own rapid growth – the introduction of roughly 30 new markets within the past three years. With the bulk of that expansion complete, Alaska during the next year plans to digest the rapid expansion, and states it may not introduce any new markets during 2014.
Typically low-key Alaska Air Group has opted to aggressively promote its plans to issue a healthy USD0.20 quarterly dividend that supports a pledge by the company to return roughly USD325 million to shareholders between 2013 and 2014. Alaska’s impressive financial performance has largely been undervalued by the financial community at large as some of the carrier’s growth targets may have spooked would-be investors that view capacity discipline as a key driver in the long-term viability of US carriers in the maturing North American market place.
At the same time it revealed its shareholder reward package, Alaska’s management also moved to allay concerns about its proposed 4% to 8% annual growth rate during the next few years, explaining moves it is making in Hawaii and the US transcontinental market to improve its unit revenue performance, which executives admit have lagged the industry average for the last two quarters.
Alaska Air Group is warning that it faces a challenging 2Q2013 as the maturing of new transcontinental routes and competitive capacity pressures in its markets to the state of Alaska are creating pressure on yields even as demand remains strong.
Some of the steps Alaska has taken to rationalise its capacity between the US mainland and Hawaii as a means to improve its performance in those markets is being diluted by several carriers making a push into the state of Alaska during the summer high season in the northern hemisphere.
Even though the carrier is spooling up new markets and facing increased competition in some of its mature markets, Alaska for the moment is sticking to its higher than industry average capacity growth for 2013 of 7.5%. However, the carrier is not completely wedded to its current expected capacity growth, and is evaluating the possibility of adjusting its supply targets during autumn 2013.
Alaska continues to face challenges getting investors to acknowledge its solid financial performance
Alaska Air Group during the last few years has consistently outperformed its US carrier peers in a financial metric – return on invested capital (ROIC) – that is prevalent in discourse in other industries but has only surfaced in discussion among airline executives during the last few years. Since 2010 the carrier has exceeded its ROIC targets on an after tax basis and has posted annual profits for the last nine years. Despite its consistent profitability, Alaska’s robust financial performance is often overlooked by the investment community, leaving executives scratching their heads as to why the company’s consistent financial results are not more recognisable.
Even as Alaska delivers consistent profitability, questions often arise over the company’s growth prospects at its two subsidiaries – Alaska Airlines and Horizon Air (which now operates under the Alaska banner). The carrier holds an advantageous position as the leading airline in Seattle, where it can feed into long-haul flights operated by its partner Delta Air Lines. It also has a strong relationship with American Airlines, but it is not certain how that partnership will evolve once American and US Airways close on their merger and complete a roughly 18 month-long integration process. Alaska does have the opportunity to flesh out its domestic network, and remains bullish that it will still deliver sound financial results with planned annual capacity growth of 4% to 8% during the next few years.
The anti-trust immunity alliances between All Nippon Airways and United Airlines as well as Japan Airlines and American Airlines are past the honeymoon phase. Whereas the airlines a decade ago were bullish on linking the mighty US with Japan Inc., today the latter's economy is still underperforming.
Japanese airlines are now ramping up US capacity to existing and new destinations as they seek to woo markets with their premium products, efficient hubs and services to secondary US cities, reducing connections.
But US carriers are expanding less than their Japanese partners, which impacts the competitive potential of the JVs, as Japanese carriers have far higher CASKs. The US airlines are also looking to diversify what United calls its "non-Japan Asia" network, a reflection of the growing importance of China. United will resume services to Taipei while American will expand to Seoul, but the pot of gold is mainland China.
Expansion there will be steady as slots are difficult to secure and airlines are dependent on next-generation aircraft to make secondary cities profitable. China services would likely be excluded from the JVs with Japanese carriers due to the Chinese regulatory environment – possibly spearheading the formation of new JVs. But that will depend on the pace of liberalisation.
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