Delta, with Gol, says it raised capacity to Brazil by 18%

Discussion in 'Delta Air Lines | SkyMiles' started by jbcarioca, Jan 16, 2012.  |  Print Topic

  1. jbcarioca
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    jbcarioca Gold Member

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    Delta VP of Sales for LA, Christope Didier, was today quoted by Glauce Cavalacanti in O Globo (Portuguese only) as having already increases capacity to Brazil by 18% with GOL codeshares. He also said that LA and Brazil in particular were primary objectives for growth by Delta, and that they wanted to be ready for strong competition with Latam and Avianca.

    According to Didier they count on Aerolineas Argentina, GOL and Aeromexico alliances to deliver their key growth.

    He further said DL sales Jan-Sept grew 11% globally with LA grew 34% and Brazil grew 42%. The latter result stemmed mostly from the rapid addition of flight last year with 35 weekly flights now.

    Despite their growth, it is interesting that TAM still carried about 80% of the Brazil-NA market, even though AA also grew in 2011. In Rio regular discussions focus mostly on the persistent failure of the US carriers to have Portuguese-speaking FA's, so people who are uncomfortable in English usually do not fly US carriers from the Southern Cone.
     
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  2. redtailshark

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    Hmmmm....so why aren't there more awards available to LatAm via SM?
     
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  3. Wandering Aramean
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    If they are counting GOL-operated flights as part of their capacity that's pretty sketchy math.
     
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  4. jbcarioca
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    Because the alliances are just now being formed. A few months from now GOL and Aerolineas Argentinas will begin to show up and availability will improve, so they say.
     
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  5. jbcarioca
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    jbcarioca Gold Member

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    They are not yet doing that, but they do say that GOL feeders are part of the equation. Obviously, they are. How significant; who knows. OTOH last year DL announced their intention to turn BSB into a hub with GOL feeding DL there. Most of teh local observers could not maintain a straight face for that one, but it remains to be seen if they can do it.After all, BSB is much cheaper, GRU is super-saturated, and connections via BSB will be fairly easy to manage for the whole of Brazil and maybe even other parts of the Southern Cone. We shall see. Less plausible things have happened.
     
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  6. MSPeconomist
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    With DL hiring foreign FAs to save money, it's surprising that there aren't more who speak Portuguese as well as Spanish. Given the importance of the Brazil market, this should be a no brainer. OTOH, it would be difficult for an exclusive Portuguese speaker to travel in the USA.

    I'm also surprised that they are counting codeshares in their growth stats, absent a joint venture agreement.
     
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  7. MSPeconomist
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    Despite the geographical and cost advantages, I'm surprised by this strategy. In Asia, DL is deemphasizing the NRT hub and offering more non stops to HKG, PEK, PVG, etc. The introduction of the 787 will accelerate this as more passengers will expect non stops on long thing routes, at least for the lucrative business travel and premium cabin markets.

    Will connections at BSB generally require some sort of visa? If so, that would be a big disadvantage for people from the Eastern part of the USA going to Argentina and Chile, while for the larger airports in Brazil, so many non stops are available.
     
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  8. MSPeconomist
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    I don't know about GOL, but given the reputation of Aerolineas Argentinas, It does not seem wise for DL to build a Latin American strategy around having DL passengers connect on this carrier. I certainly would fly a different airline long haul to avoid them, even for a short segment.
     
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  9. jbcarioca
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    jbcarioca Gold Member

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    I do not know about their Spanish speakers. I don't think they're counting codeshares in volume today. They are expecting the regional codeshares to contuinue feeding their own flights as they have been doing for the last year. The GOL arrangement seems to have oputperformed expectations by a good margin.
     
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  10. jbcarioca
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    jbcarioca Gold Member

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    Maybe they were the only one left. <shudder> they are not my choice!
     
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