Delta, Alaska Airlines Go to War Over Seattle - Raises Concerns About Costs

Discussion in 'Delta Air Lines | SkyMiles' started by WilliamQ, Jun 29, 2014.  |  Print Topic

  1. WilliamQ

    WilliamQ Gold Member

    Messages:
    4,509
    Likes Received:
    14,289
    Status Points:
    10,675
    http://online.wsj.com/articles/delta-alaska-airlines-go-to-war-over-seattle-1404076082

    Carriers' Fight for Market Share Raises Concerns About Costs
    Longtime partners Alaska Air Group Inc. ALK +0.89% and Delta Air Lines Inc.DAL +0.08% are slugging it out in a battle for Seattle that is turning into one of the U.S. airline industry's nastiest turf wars in years.

    Delta, the No. 3 U.S. airline by traffic, and Alaska Air Group's Alaska Airlines are going head to head, pouring money into improvements at Seattle-Tacoma International Airport and touting their civic credentials as they fight for market share.

    The contest alarms some investors, who fear a big buildup of flights at the airport would put pressure on profits, particularly for smaller Alaska Airlines, the sixth-largest U.S. carrier.

    Delta, which has worked for the past year to expand Seattle into a hub, has added flights to London, Shanghai, Tokyo, Seoul and Hong Kong, and dozens of domestic flights to feed those services. By December, Delta expects to offer 95 flights to 33 destinations from Seattle, which it also considers its gateway to Asia. In the third quarter, the airline expects to be Sea-Tac's biggest revenue producer.

    [​IMG]

    Read more here
    http://online.wsj.com/articles/delta-alaska-airlines-go-to-war-over-seattle-1404076082
     
    Flyer1976, vickers and Newscience like this.
  2. Davescj
    Original Member

    Davescj Silver Member

    Messages:
    565
    Likes Received:
    536
    Status Points:
    720
    What I truly find odd - why did DL not simply expand the codeshare/marketing? It would seem that a partnership would work out better in the long run for both. I wonder - what happened? I can't see DL wanting to purchase AS, as there would not be enough traffic to Alaska on a single carrier to support the routes (assuming the merger would pass DOJ inspection).
     
    WilliamQ likes this.
  3. DiverDave
    Original Member

    DiverDave Gold Member

    Messages:
    1,294
    Likes Received:
    1,818
    Status Points:
    1,095
    Well, the word seems to be that AS was unable/unwilling to provide the volume of codeshare seats that DL wanted or at least at the prices DL wanted.

    David
     
    WilliamQ likes this.
  4. Davescj
    Original Member

    Davescj Silver Member

    Messages:
    565
    Likes Received:
    536
    Status Points:
    720

    OK, here comes a dumb question (and I truly don't know the answer, please do to throw rotten fruit or vegetables). AS allows DL to sell seats as DL as DL Flt 1234 (say SEA - ANK to pick random choices). I understand DL can say "we offer a flight SEA - ANK" serviced by AS. If the seat is on a 006 ticket, I'm assuming DL gets a percentage (since they sold/issued the ticket), but how much? Can it be much more than then old 10% offered to ticket agents (which, ironically, DL was the first to slash). Or does DL get something more? If there is a demand for another flight, I can see DL/AS saying "hey, we need more metal" without that creating problems. Obviously I am missing something (what DL is getting paid? what metal AS will put on the route? the fact that AS/DL don't have a JV?). Help me out - I would honestly like to know (I have to admit complete ignorance here).
     
    ballardFlyer and WilliamQ like this.
  5. WilliamQ

    WilliamQ Gold Member

    Messages:
    4,509
    Likes Received:
    14,289
    Status Points:
    10,675
    http://www.alaskadispatch.com/artic...rlines-and-delta-duke-it-out-over-seattle-hub

    http://www.alaskadispatch.com/artic...rlines-and-delta-duke-it-out-over-seattle-hub
     

Share This Page