- Cargo traffic (FTMs): +1.0% year-on-year;
A4A reports 1% rise in cargo traffic in Aug-2012
You may also be interested in the following articles...
Airline JVs under scrutiny in Qantas-American; Delta-Aeromexico; Alaska-Virgin America merger
Concerns over the US Department of Justice obstructing the merger between Alaska Air Group and Virgin America were laid to rest in Dec-2016: the agency cleared the tie-up through a fairly benign requirement that Alaska and American must relinquish some codesharing routes. The result is that Alaska and Virgin America will bolster their combined positions at key US markets in order to compete more effectively with larger US network airlines.
DoJ’s blessing is a major milestone for Alaska. Since the company announced its plans to acquire Virgin America in Apr-2016, it has continually stated that it expected to close the deal by YE2016, after gaining DoJ’s approval. But the initial closing date was pushed back in order for DoJ to gain more time to review the transaction. The extended review caused jitters among Alaska’s investors about potentially onerous conditions to be imposed by DoJ, but ultimately the agency’s requests were rational.
In the last weeks of 2016 US regulators have pointed a new direction for joint venture, but the message is not entirely clear. Adopting a reasoned approach to the Alaska-Virgin America tie-up while rejecting a proposed joint venture between Qantas and American, and driving Aeromexico and Delta to reconsider their JV after imposing conditions the airlines deemed to be unworkable. In part, those decisions reflect the influence smaller airlines have exerted on the current US Presidential administration.
Delta Air Lines & Korean Air announce joint venture in shadow of China Southern's SkyTeam defection
It is surely no coincidence that Delta Air Lines and Korean Air announce their joint venture a mere two days after their SkyTeam partner China Southern Airlines – the largest in Asia, second largest in SkyTeam and sixth largest in the world – agrees to an investment and broad strategic partnership from Delta's rival, American Airlines, a member of oneworld.
Delta and Korean Air have long flagged their JV and the 29-Mar-2017 announcement is only a Memorandum of Understanding. The JV will have to be strong, with a high level of integration and trust, since it will involve profit sharing and not just revenue sharing.
Yet aside from that Delta and Korean have offered no new details, or even a time frame. Their announcement merely formalises what they have essentially been saying for months.
If it is to be leverage against China Southern-American, it should be noted that the two partnerships will be very different in the medium term and will not create significant competition with each other. The Delta-Korean JV comes with unfortunate timing for Korean Air, which continues to face slackening investor confidence and severe pressure in the Korea-China market.