DL plans MCO-GRU service

[WorldTraveler]

DL jumps into a market with a host of new Florida-Brazil service.

http://finance.yahoo.com/news/delta-files-non-stop-between-200100442.html

Azul just said that it would add MCO-GRU service in addition to its new Campinas (VCP)-MCO service.

DL says it will use a 35 seat business class cabin 767 but I still the 25 seat version will be used instead since it carries more coach seats.

IIRC, this will be DL's first service from Florida to deep S. America; no other US carrier operates MCO to deep S. America.

 

[BABABOOY]

WOW, good for the MCO base.  Hope it gets approval.

 

[WorldTraveler]

it will... the US and Brazil goes to Open Skies later this year. but they have to file because it is not Open Skies now.

It should be obvious but this is a shot across the bow of a certain airline with a large Florida hub.

 

[MAH4546]

This will be reallocation of the second ATLGRU flight to MCOGRU. The flight number even stays the same. 

 

[WorldTraveler]

indeed and DL didn't even have to try to cover up the fact (or forget to do so) that it is switching frequencies.

based on DOT data, AA carries 40% of the MCO to GRU traffic as well as Brazil overall or about 240 passengers per day while DL has about half that share.

DL is simply moving ATL back to a single daily operation and moving its MCO connecting passengers off of the ATL flight.

 

[MAH4546]

Delta is clearly forgetting to mention in it's press release that it is reallocating Atlanta-Sao Paulo frequencies. It is doing exactly what American did. But, I get it, because, hey, Delta.

 

[WorldTraveler]

no, there is no requirement nor is there any reason for DL to maintain double daily ATL-GRU

OTOH, AA didn't bother to tell the DOT that it didn't intend to operate LAX-NRT if it won LAX-HND even while saying it would enhance competition in the Japan market.

 

[MAH4546]

I never said that there was a requirement the slots be used on ATLGRU. Trust me, I know far more than you about this stuff (still waiting for Delta to sue to stop the LAXMEX route transfer). 
 
All I pointed out is that Delta is doing exactly what American was doing - planning a route transfer without making it's intentions clear. 

 

[commavia]

I agree this is probably more about GOL - and ultimately using a Delta 767 to replace GOL's suboptimal, 1-stop 737 Brazil-MCO service.  But still - going up against TAM, Azul and (at least for now) GOL in MCO-SAO?  Have fun with that, Delta.

 

[WorldTraveler]

I never said that there was a requirement the slots be used on ATLGRU. Trust me, I know far more than you about this stuff (still waiting for Delta to sue to stop the LAXMEX route transfer). 
 
All I pointed out is that Delta is doing exactly what American was doing - planning a route transfer without making it's intentions clear.

for someone who thinks they know so much about the legalities of the business, you have an absolutely abysmal grasp of the practical realities.

we're still waiting for AA's MIA-NRT service.... and what new LAX to Asia flights can we expect next year?

you do realize that AA is actually dropping domestic service from LAX, don't you?

DL will start LAX-MEX on its own metal and despite what you seem to think, DL's increased cooperation with AM is going forward... we'll see what they call it but it is happening.
 
 

I agree this is probably more about GOL - and ultimately using a Delta 767 to replace GOL's suboptimal, 1-stop 737 Brazil-MCO service.  But still - going up against TAM, Azul and (at least for now) GOL in MCO-SAO?  Have fun with that, Delta.

the target is AA, not Azul or TAM. AA is the largest US carrier from MCO to Brazil and Latin America as a whole. DL can pick off some US-Brazil traffic on its own but G3 helps tremendously with doing that the Brazil point of sale. DL might actually be dusting off its plans for an MCO-Latin America hub. Given that DL has done very well competing against B6 in NYC, it isn't out of the realm of possibility that DL will piggyback on B6's growth. And diversion of a lot of traffic which AA carried on MIA-Latin America would absolutely weaken AA.

and I believe MCO is in the process of expanding their int'l terminal, no? No shortage of gates at MCO.

and if DL has decided not to compete directly against AA from MIA except on a handful of key routes such as to Gol/AM hubs in Latin America but instead focus on top O&Ds elsewhere, then the only way for AA to try to hold onto those passengers is to price well below the market or jump into the MCO market against that same list of carriers including now DL and trash its own MIA hub.

Gol's one-stop flights get out of the picture and this is probably a setup for a JV with them... DL does have seats on Gol's board. Gol couldn't share revenues with DL and thus had to offer its own service but under a JV, they can share DL's revenues.

the only routes that are missing for DL/G3 from Brazil is MIA-GRU and GIG.

btw, let's see how these new enhanced US-Brazil airline partnerships work. DL and G3 will be one. Perhaps Avianca and UA will form one. Azul and B6 will form one... but the problem with AA and JJ is that they are so dominant in the market that they will have to divest slots at GRU which is still limited access at peak US-Brazil flight times in order to get a JV.

wonder when that will happen.

this will be the US-UK market part 2

oh, comm,
you do realize that it is AA that reported a $1 billion loss on its Latin system in the 4th quarter, don't you?

 

[FrugalFlyerv2.0]

for someone who thinks they know so much about the legalities of the business, you have an absolutely abysmal grasp of the practical realities.
.............................
 
this will be the US-UK market part 2

 
Remind us who is #1 in that market?

 

[700UW]

How is that ORD-LHR flight doing?

Oh wait they announced it, but never flew it.

 

[FWAAA]

Doesn't DL still owe US seven weekly unrestricted USA-GRU frequencies from the slot swap transaction? I thought that those were due in March. Does anyone remember?

 

[WorldTraveler]

Remind us who is #1 in that market?

no one has doubted or argued against that AA is the number one carrier in the US-LHR market.

but what you want to ignore is that DL has managed to double its share in the US-LHR market in the 5 years since Open Skies with the UK was signed while AA's share on its own metal has decreased. AA has shifted share to BA but DL also has VS which combined the two have 25% of the market.

So, the question is not that DL intends to be the #1 carrier but that it has the intention of having a major presence in the US-LHR market, the very same thing it intends to do in Florida to Latin America.

They are starting with MCO.
 
 

How is that ORD-LHR flight doing?

Oh wait they announced it, but never flew it.

and you also seem to ignore that DL instead launched LAX-LHR, a route for which the first DOT data shows that DL now has a 14% share - about half of what AA and UA have and DL launched the route DURING the 4th quarter so it doesn't even reflect a full quarter of operations.

and DL is getting fares close to the market average.

it is precisely DL's ability to grow its network in key industry markets and get average fares on par with the industry that is the reason why analysts are saying that DL is being responsible in its network growth.

This won't be DL's last market addition from Florida to Latin America

 

[topDawg]

lol. 
 
This is like watching kids argue with each other. 
 
a lot of yall need to find a hobby....a girl/boy friend.....a job....something.