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Delta will only partially fill gap left by indefinite postponement of start-up Saipan Air

Analysis

Planned Northern Mariana Islands flag carrier Saipan Air has indefinitely postponed its launch following its charter partner Swift Air failing to fulfil its contractual obligation to provide aircraft a mere week before Saipan Air's planned 01-Jul-2012 launch to Tokyo Narita. Swift Air subsequently filed for bankruptcy, leaving it unclear if Saipan Air can recoup any of the USD1.26 million it paid to the US charter operator.

At the same time of Saipan Air's collapse, Delta announced it would increase summer capacity between Tokyo Narita and Saipan from 14 weekly flights to 18, although this addition will still be less than what Saipan planned to introduce, and will leave other markets unserved. Delta is the sole operator between Tokyo and Saipan, an island commonwealth of the US that has been vying with Guam to increase tourists. The current wave of Japanese LCCs, as part of a larger North Asian LCC movement, may achieve that in Saipan Air's place.

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