Delta plans transatlantic shuttle service with Virgin

http://buyingbusinesstravel.com/news/2420830-delta-plans-transatlantic-shuttle-service-virgin

Delta wants to start a shuttle service between New York's JFK Terminal 4 and Heathrow's Terminal 3, the airline's CEO has revealed.

Delta boss Richard Anderson said: "Once we have gained the requisite approvals from the EU, Britain and the US our intention is to operate a joint Delta / Virgin shuttle from Terminal 4 into London Heathrow T3."

"[At the JFK end] that means we can use both lounges - the new SkyClub and the Clubhouse. If you look at the passenger survey data, the number one rated business product in the US to Europe market is Virgin Atlantic and number two is Delta, so they will join together to offer the very best service to the business traveller between JFK and Heathrow."

Under the proposed joint venture, Delta and Virgin Atlantic would co-ordinate schedules, network planning, pricing and sales between North America and the UK. The operation would be similar to that already run by British Airways and American Airlines across the Atlantic.

Read More: http://buyingbusinesstravel.com/news/2420830-delta-plans-transatlantic-shuttle-service-virgin

 

gee -- is there any where Delta flys across the Atl from that doesn't have a SC?

<lol>

DTWBOB

 

To be fair, the new SkyClub in JFK T4 is VERY nice.

 

This would be a major service coup for DL. I would love to see this and get SM for flying VS. In addition, with a JV, DL could move their wide bodies onto other routes.

 

I do not like LHR as a transit airport. The only decent transit when flying DL, is AMS. I hope we have 100% MQMs on VS

 

Perhaps, but the complimentary food/beverages are as bad as every other SkyClub. Or you can pay dearly for perhaps better stuff.

 

If they go JV, surely at least those flights would be 100%. The reason I say that is the group 1 category includes the current JV participants.

 

I hope so, I would not mind flying VS to India if I get 100% MQM

 

It would be nice to haver an excuse to fly VS in club.

 

Given the limited short-haul VS options, I suspect there won't be a lot of transit intended as part of this tie-up. Maybe some codeshares on services to India and parts of Africa, but it won't be like with AF/KL where connecting in CDG/AMS opens up a lot of destinations in Europe.

 

This is an issue, but if (big IF) VS enters ST, effectively LHR would become a ST hub.

 

In that VS considers it their hub, yes. But with minimal demand for connecting traffic and virtually no short-haul lift it is almost a moot point.

 

But if VS entered ST, then Alitialia, KLM, AF, etc could provide the short haul routes to connect in/around Europe. Also, I believe VS is starting to add some connections domestically.

 

Yes, VS has 3 short-haul routes now. Hardly great feed. And any routes AZ/AF/KL will connect to in LHR would likely be served from the USA as well, mostly from the same cities where there the VS service would be.

There are plenty of connection opportunities at LHR. CO paid a ton of cash to buy slots once it opened up and they claimed they still profited on the move, even after the huge expense, based on connecting traffic. It doesn't have to be in-alliance to work. But those are usually the more valuable connections.

 

Why would, say, KLM be interested in providing connectivity to VS pax at LHR if those same pax could just fly US-AMS->??

 

Different prices, redemption, member of VS loyalty program, etc. Or more accurately, pax may be interested. VS also could do code shares with other carriers, say OK, Tarom, etc.

 

That would require OK to resume service to the UK.

 

I doubt that KLM would start additional flying to non-KLM destinations (AMS). And where would they get the LHR slots from anyway?

 

I agree. And a big hurdle there will be the slots. VS started life fundamentally with a single hub (London) and sort of acted like a O/D carrier. But, if the VS/DL 49% ownership goes through, I think that would change. I would expect some sort of codeshares to start to exist between VS/other ST airlines, as well as other flights starting to be offered. After all, VS will have to be able to bring more than LHR to the party.

 

They've said that they don't plan to join SkyTeam. And, as far as Delta is concerned, just bringing LHR to the mix is actually quite useful.

They don't need the onward traffic to continental Europe to make the LHR connections profitable for the partnership.

As for the pricing, the JV/ATI partners generally have a single set of tariffs published across all partners.

 

That's much stronger than anything I've read. All I recall is that joining SkyTeam isn't something they have made a decision on or are in a hurry to do. Did I miss something?

 

At least when the DL's purchase of 49% was announced, they said they did not intend to join ST. However, if someone owns 49%, that is a powerful shareholder voice (should DL change their mind). However, other ST carriers may not want VS to join. But - long term - I still think VS will join ST. I think in the next few years there will be fewer and fewer "unallied" carriers of any size.

 

Given how much Delta seems to care about ST (see recent deval of mileage earnings), would they really bother?

 

Well, there is truth in that. However, it is of note that the JV partners are all in "group 1." KE in group 4 truly surprised me. However, there are ways around the "limitation" to an extent. If you get a codeshare on a group 1 carrier, you get the full MQMs (so fly KE with an AF flight number for example).

One thing I do wonder - is this DL's misguided way to 'add' value to SM by restricting who earns full miles? (and by extension creates liability).

 

KE is a JV/ATI partner.