Delta Air Lines and Virgin Atlantic Airways welcomed (23-Sep-2013) the US Department of Transportation's (DoT) decision to grant the carriers antitrust immunity for their JV on transatlantic services between North America and the UK. From 30-Mar-2014 the carriers will operate a "harmonised" schedule between New York JFK and London Heathrow, offering seven daily services. The new schedule will include departures every 30 minutes during the early evening peak and then hourly until 22:30 from New York JFK and a spread of seven daily services from London Heathrow to New York JFK, including two late afternoon and early evening departures. In addition, the carriers will offer twice daily New York Newark-London Heathrow service, with a combined 32 daily services between North America and the UK. Delta Air Lines president Ed Bastian said: "We are delighted that the Department of Transportation recognises that the immunised partnership offers significant advantages to customers. The freedom to cooperate fully with Virgin Atlantic will initiate a new era of greater competition in the New York to London market where it is much needed. We have a proven record in making joint ventures succeed and we look forward to building our relationship with Virgin Atlantic." Virgin Atlantic Airways CEO Craig Kreeger said: "Today represents a huge opportunity for both Virgin Atlantic’s passengers and our business. Our partnership with Delta means we will be able to offer convenient aligned schedules and a much broader network, giving the best possible travel choices and on board experience to trans-Atlantic passengers. For almost 30 years Virgin Atlantic has offered an award-winning experience and service to passengers travelling across the Atlantic, and today’s ATI approval means we can build on this momentum and improve the consumer landscape at Heathrow for the better." [more - original PR]
Delta Air Lines and Virgin Atlantic Airways welcome DoT antitrust immunity for transatlantic JV
You may also be interested in the following articles...
American Airlines and Norwegian forge new partnerships for global reach: CAPA Americas Summit
American Airlines' recent pursuit of China Southern, and Norwegian’s partnership discussions with Ryanair, reflect the multiple changing dynamics that airlines operating across all business models must face as they maximise network connectivity to remain relevant and competitive. American had to drift outside oneworld to gain an important foothold in China, while Norwegian stresses that traditional airline partnership structures are not viable for its business model.
But despite American’s attention grabbing decision to take a small equity stake in China Southern, the agreement appears to be a one off event. American has no plans to join rival Delta in pursuing stakes in airlines around the world to attain network longevity. American's position is that its current and prospective joint venture agreements provide anchors in the most important global regions.
For Norwegian, a potential tie up with other low cost airlines allows the company to offer network breadth to the pool of passengers it intends to stimulate with new narrowbody service to the US, but without the frills and expense inherent in more complex airline partnerships.
United Airlines stresses that capacity adds are accretive as 2Q2017 unit revenues turn positive
United Airlines expects to attain a positive passenger unit revenue performance in 2Q2017, which would mark the first positive result for the airline in that metric since early 2015. The airline’s PRASM results in 1Q2017 were in line with its initial forecast, which was more conservative than those of its larger US rivals. American and Delta refined their 1Q2017 unit revenue forecast downward, while United kept its guidance intact, and its performance fell within its initial estimates.
The airline’s 2Q2017 positive unit revenue outlook is driven by many factors, including a shift in its management of close in bookings to reduce reliance on advance purchase discounts. Latin America and the US domestic market continue to be bright spots for United, while declines in Pacific unit revenue continue to moderate. United’s better than expected unit revenue performance in trans-Atlantic markets in 1Q2017 should moderate as point of sale tilts more toward Europe later in the year.
Markets seem still to be digesting United’s decision to increase its planned 2017 capacity growth by 1.5ppt. United is stressing that much of the growth is driven by increased gauge, and the growth is designed to restore United to its natural share in the US domestic market.