- Passenger traffic (RPMs): +15.0% year-on-year;
- Load factor: 84.7%, +3.8 ppts;
- Domestic: 81.4%, +2.8 ppts;
- US trans-border: 76.2%, +3.6 ppts;
- Trans-Atlantic: 89.9%, +1.4 ppt;
- Asia Pacific: 91.9%, +11.8 ppts;
- Latin America & other: 79.2%, -1.0 ppt. [more]
Air Canada passenger numbers up 15% in Jun-2010
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Air Canada and Virgin Australia codeshare, in a North American market dominated by Qantas
From early 2017 Air Canada and Virgin Australia introduce a tidy new partnership. Virgin Australia receives improved access to Canada – a market its JV partner Delta cannot sufficiently cover from their shared Los Angeles gateway. Air New Zealand's sixth freedom option, via Auckland, is the third largest transportation choice by Canadians visiting Australia. Since Virgin noisily fell out with Air NZ, the Australian airline is looking to reassert itself in Australia-North America markets that it had quietly let Air NZ dominate. Virgin has already announced plans to resume trans-Pacific services from Melbourne, which Air NZ took traffic from.
Air Canada is growing in Australia, expanding from its 2007 Sydney service with a 2016 Brisbane service, and perhaps soon Melbourne as well. Air Canada needs a partner for domestic and New Zealand connections as it expands its footprint and grows ahead of market demand. There is some conflict, since Air Canada - as it does for its expanding Asia and Europe presence – will look for USA sixth freedom traffic. Air Canada has favourable connections via Vancouver to a handful of American cities, including New York.
Delta Air Lines closes in on Korean Air JV to boost Asia network, hedge China Eastern partnership
Delta Air Lines is rekindling its partnership with Korean Air. Delta has previously used heavy-handed tactics – cutting off codeshares, nearly eliminating reciprocal frequent flyer benefits otherwise enshrined in their SkyTeam alliances – to bully Korean Air into a JV. The attraction to Delta is a JV partner in Asia, which American and United have long enjoyed.
Korean Air, until recently, has failed to see the benefits of a partnership with Delta, which has a smaller trans-Pacific footprint. Although Korean Air felt the damage from all but losing its North American partner, what Delta needed to give Korean Air was time. It has helped that Delta is no longer pursuing a hub in Tokyo – a rival to Korean Air and Seoul.
A deeper Delta-Korean Air partnership, as hinted at by Delta management in Dec-2016, starts with both feeling competitive trans-Pacific pressure but jointly holding a position of strength, with a JV slightly smaller than United-ANA's, but much larger than American-JAL. Korean Air brings wider coverage to Southeast Asia, as well as North American gateways.
Delta's Asia strategy for Seattle is taking longer to ramp up than the airline anticipated, while United outshines with its Asia hub at San Francisco and China 787 strategy, and American is growing in Los Angeles. Korean Air receives a partner to grow its key trans-Pacific network while Delta receives a hedge for China Eastern, where a partnership is not guaranteed and is at least some years away. At best, Korean Air and China Eastern could be powerful complementary partners.