US/AA merger settlement imminent!

[WorldTraveler]

DL is starting its route within the 90 day startup period requirement.

DL isn't willing to rush into markets and lose money just to hold onto market share.

That's probably why DL is on track to make $2B+ this year and why DL has the highest market cap of any airline in the Americas - it is pushing $25B.

BTW, here is an article about market caps and shows how AA/US compares to DL and UA, the latter of which has a huge amount of work to do to be perceived as a good investment.

http://seekingalpha.com/article/1856961-united-airlines-path-to-much-higher-profits?source=email_rt_article_readmore

I have no idea what "wasting slots on regional service..." means but you do realize that DL's average aircraft size at LGA has increased compared to when US operated the slots - exactly as DL said it would and DL's average aircraft size at LGA is higher than US' at DCA, which is one of the lowest at any hub.

Looks to me that US is the one that sat on scores of slots at LGA until DL negotiated a deal to allow the slots to be used more efficiently while the DOJ settlement forces AA/US to use its slots more efficiently at DCA.

 

[Kev3188]

But wait, there's more...Delta was granted additional access to Sao Paulo that became effective earlier this month, yet, surprise surprise, it applied with DOT to delay the start to March 2014. And it'll probably try to delay that start again to the World Cup, then apply for "seasonal" use after the soccer traffic dries up.
 
Yup, Sao Paulo is just such a closed market , so hard to gain access too, that Delta isn't even using all the frequencies it has.

Hunh.

Interesting. Thanks for posting that.

 

[WorldTraveler]

you didn't know, Kev, that DOT regulations require a route/flight to be started within 90 days of the intended start date in the application.

DL said it would start the route in December 2013 and will be starting the flight on March 1 within the 90 day period.

BTW, AA's new flight to CWB was late today. It was heavily booked, aided by $600 RT fares in a market where taxes are 15% of that amount. In a market where average fares are more than double that amount, AA's fares make buddy passes look expensive.

They did send down a newly painted 763.

Looks like a market share play to me.

 

[Kev3188]

you didn't know, Kev, that DOT regulations require a route/flight to be started within 90 days of the intended start date in the application.

I didn't know that DL wasn't using all of their frequencies...

 

[WorldTraveler]

DL is using all of their frequencies.

DL has 90 days to launch their 2nd ATL-GRU flight based on the standard 90 day requirements of the DOT.

DL starts the northbound flight for about 4 weeks with a 12.25 a.m. dept until the end of March when it moves to a 10.30 pm departure.

I believe ATL-GRU for DL will be the only double daily flight by a US carrier other than AA. Perhaps MAH would like to confirm that for me.

ATL will be the largest non-AA gateway to Brazil with 4 flts/day to 3 cities (actually it already is among US carriers with just 3 flights to 3 cities). I believe only MIA has more than 4 flights/day by one carrier to Brazil.

 

[Kev3188]

DL is using all of their frequencies.

They are? Right now?

Are you saying the below statement by MAH is incorrect? If so, how?
 
(bold text by me)
 

Yup, Sao Paulo is just such a closed market, so hard to gain access too, that Delta isn't even using all the frequencies it has.

 
 

 

[WorldTraveler]

yes, it is an inaccurate statement. DL has the rights to 3 flights/day right now to GRU - JFK, DTW, and ATL daily. It operates all three.

DLs route award for ATL-GRU is not effective as of today.


Since you seem to think it is your job to line up with anyone who can try to discredit me (any enemy of my enemy is my friend?), why don't you whisper the question again as to why AA doesn't bother to compete in the NYC-BOG market. It is Open Skies after all.

GRU is the only market in Brazil which is effectively limited (Campinas is attached to GRU in the bilateral which is why no US airline serves it since they would have to be giving up a GRU frequency.)

Is it possible, just very possible, that AA hasn't prioritized adding JFK-BOG service for the time being just as DL isn't going to rush into ATL-GRU #2 until the 75th day or so of when its route award is effective.

AA's LAX-GRU is due up soon too, right? MAH will tell you when the sucking sound will start on that one.

 

[Kev3188]

yes, it is an inaccurate statement. DL has the rights to 3 flights/day right now to GRU - JFK, DTW, and ATL daily. It operates all three.

If that's a asterisk-free fact, why didn't you just say that several posts ago?

Why would MAH state otherwise?

Okay, so they're actively using 3 right now. How many total authorities does DL have?  

 

Since you seem to think it is your job to line up with anyone who can try to discredit me (any enemy of my enemy is my friend?),

Spare me. Alliance building is your domain, not mine.

I'm just here to shop at the "marketplace of ideas" like everyone else.
 

why don't you whisper the question again as to why AA doesn't bother to compete in the NYC-BOG market. It is Open Skies after all.

Because I don't care.

My question was about DL's use of its allotted frequencies.

 

[dfw gen]

Beware the great and powerful delta!

 

[WorldTraveler]

Kev,
for the umpteenth time since you are a selective shopper, DL has 3 daily frequencies allocated to it at this time. DL's application was to start its 4th GRU flight (ATL #2) as early as Dec 2013; you cannot start a flight/route before the date the DOT awards but you can start it up to 90 days later which DL is doing.

 

[robbedagain]

yes, it is an inaccurate statement. DL has the rights to 3 flights/day right now to GRU - JFK, DTW, and ATL daily. It operates all three.DLs route award for ATL-GRU is not effective as of today.Since you seem to think it is your job to line up with anyone who can try to discredit me (any enemy of my enemy is my friend?), why don't you whisper the question again as to why AA doesn't bother to compete in the NYC-BOG market. It is Open Skies after all.GRU is the only market in Brazil which is effectively limited (Campinas is attached to GRU in the bilateral which is why no US airline serves it since they would have to be giving up a GRU frequency.)Is it possible, just very possible, that AA hasn't prioritized adding JFK-BOG service for the time being just as DL isn't going to rush into ATL-GRU #2 until the 75th day or so of when its route award is effective.AA's LAX-GRU is due up soon too, right? MAH will tell you when the sucking sound will start on that one.

so what this person said is inaccurate but urs is always accurate?

 

[Kev3188]

DL has 3 daily frequencies allocated to it at this time. DL's application was to start its 4th GRU flight (ATL #2) as early as Dec 2013;

 
When were they awarded this 4th route authority? Mah states that it was earlier this month (Nov. 2013). Is that accurate?

Delta was granted additional access to Sao Paulo that became effective earlier this month...

 

[WorldTraveler]

The DOT's final order was issued on July 3, 2013 and can be found here.

http://www.regulations.gov/#!documentDetail;D=DOT-OST-2013-0072-0034

If the link won't work you can query regulations.gov looking for a July 3 date with Delta Air Lines as the keyword, limited to the Dept. of Transportation.

note that in the footnotes, it specifically says that DL proposed to start the additional ATL-GRU flight on Dec 15, 2013.

Note that item 5 in the body of the order says that carriers have 90 days from the proposed startup date to begin service.

Note that DL's second part of the route award is for DTW-GRU, replacing the 7 weekly frequencies traded to US as part of the LGA/DCA slot swap.
IOW, DL threw in Brazil frequencies as part of the value of the slot deal which it turned around and replaced without problem. There will be no interruption to DL's DTW-GRU service.

This is the last US-Brazil route case before Brazil and the US implement Open Skies.

 

[Kev3188]

The DOT's final order was issued on July 3, 2013...

 
 
 

note that in the footnotes, it specifically says that DL proposed to start the additional ATL-GRU flight on Dec 15, 2013.

Could they have started (or added) service from somewhere else between the July award and now?


 
 

There will be no interruption to DL's DTW-GRU service.

It's a red letter day!

 

[eolesen]

Now that there have been a couple pages dedicated to this, what exactly does GRU have to do with the US-AA merger?...