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Korean Air / DELTA Reduces Codeshare Operation in S13

Korean Air / DELTA Reduces Codeshare Operation in S13

Old Aug 27, 2013, 11:33 am
  #46  
 
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Originally Posted by koreanair720
what would that be? a KE exit from skyteam?
Not a problem from me, being a OneWorld koolaider-we can use KE.^

Originally Posted by Dalat767
SQ is well-known as an independent carrier within *A and it appears that KE is following the same strategy within ST.
Kind of how CX is with OneWorld. That being said, CX and BA are getting a little closer and CX & AA have been doing a better job integrating alliances as well over the past few years. If CX were to start DFW, that would certainly help as well.

Originally Posted by SOBE ER DOC
My guess is JL and CX would pitch a fit if this happened.
^

Originally Posted by HongKonger
IMO there are two flaws with this line of reasoning:

1. DOJ isn't actually going to block the US/AA merger. They are just trying to extract concessions. There will be a settlement of the antitrust lawsuit.

2. ST is not greener pastures than *A.
1)DOJ is trying to block the merger. They have already stated they tried to negotiate with AA/US and basically there is no other way to satisfy their (DOJ's) demands short of blocking the merger.

2)I agree on the second part.

Originally Posted by pbarnette
Alliances are yesterday's strategy. OW and *A aren't going to bend over backwards for a lone-wolf KE any more than ST will. KE would be no better off in OW, but outside the AA/JL JV, than they are today and AA wouldn't be eager to encourage KE joining as a competitor. Ditto for UA/ANA.
Why are carriers such as QR joining OneWorld then? Why has MH stated that joining OneWorld has helped its bottom line(especially on the revenue department)?

OneWorld is a bit of a "loose" Alliance, but nonetheless, there are advantages of being in an alliance.

IMHO, KE would be in a better position. Along with JL and CX, KE being in OneWorld would be a powerhouse in Asia.
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Old Aug 27, 2013, 11:47 am
  #47  
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Originally Posted by dieuwer2
Why would DL need KE in the first place? Delta already flies to major cities in Asia. And all the second tier cities can be served by CI, CZ, and MU (Group 3 Partners).
B/c many people aren't just going to East Asia, MNL, BKK or SIN? And unless your final destination is a city in China, I don't consider CZ and MU viable b/c international to international transit in mainland China is still a bit of a pain.
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Old Aug 27, 2013, 12:17 pm
  #48  
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Originally Posted by dieuwer2
Why would DL need KE in the first place? Delta already flies to major cities in Asia. And all the second tier cities can be served by CI, CZ, and MU (Group 3 Partners).
I think that KE could still deliver value to DL, but only if they are willing to commit to a JV. Otherwise, you are spot on. As unpopular among some here as it may be, KE needs DL much, much more than DL needs KE.

I'd go so far as to question the value that KE really brings to SkyTeam, absent a JV with DL. It is out of the way for most connections from Europe and can only be seen as competition to any ambitions from the Chinese carriers to crack the TPAC and Asia-Europe trade. KE has a place in ST, but it isn't in calling the shots.
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Old Aug 27, 2013, 12:32 pm
  #49  
 
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Originally Posted by dw
B/c many people aren't just going to East Asia, MNL, BKK or SIN? And unless your final destination is a city in China, I don't consider CZ and MU viable b/c international to international transit in mainland China is still a bit of a pain.
I hope DL doesn't think that the Chinese airlines are a substitute for KE, for those making connections. I know a lot of people who won't fly into China unless that is their final destination (for reasons real or perceived). Overall, most folks I know have no problem connect in Seoul, but see connecting in China as having potentially a high hassle factor. Plus the fact that Chinese airlines are not always well regarded (again, this could be more perception than fact).
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Old Aug 27, 2013, 12:34 pm
  #50  
 
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Originally Posted by SOBE ER DOC
My guess is JL and CX would pitch a fit if this happened.
JL already codeshare on KE flights.
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Old Aug 27, 2013, 12:39 pm
  #51  
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Originally Posted by Jacobin777
Why are carriers such as QR joining OneWorld then?
Why are QR allegedly discussing a JV with BA for the Kangaroo routes? Why did QF dump BA (and ignore CX) for EK? Why is AB in bed with EY? The growth of JVs and cross-ownership has been a far more important trend than QR joining OW.

Originally Posted by Jacobin777
Why has MH stated that joining OneWorld has helped its bottom line(especially on the revenue department)?
MH had nowhere to go but up.

Originally Posted by Jacobin777
IMHO, KE would be in a better position. Along with JL and CX, KE being in OneWorld would be a powerhouse in Asia.
Can you be a powerhouse in Asia without being a powerhouse in China? I'm skeptical. The combined lift of JL, CX, and KE still looks to lag that of CZ. And both CZ and MU carry more international passengers than JL, which really is very Japan-focused in terms of passenger volume.
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Old Aug 27, 2013, 12:48 pm
  #52  
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Originally Posted by dw
B/c many people aren't just going to East Asia, MNL, BKK or SIN? And unless your final destination is a city in China, I don't consider CZ and MU viable b/c international to international transit in mainland China is still a bit of a pain.
The only problem with this line of argument is that East Asia and China are where KE excels.
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Old Aug 27, 2013, 1:15 pm
  #53  
 
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Originally Posted by RealHJ
One thing that I am surprised no one has said here yet. Obviously DL feels comfortable telling other ST members "it's our way or the highway", as ST needs DL for US coverage as much as (if not more than) DL needs ST and it feels that it can get away with it, there soon being only 3 legacy major airlines in the US and only three alliances -- one each, no more, no less. However, if the DoJ blocks the US and AA merger, though it's an incredibly slim possibility, US could move to greener pastures from *A to ST and thus provide an alternative to other ST airlines for US coverage. Likely would take years and start as one-on-one interline and codeshare agreements first, but it is likely that after the merger with AA blocked US would be looking for ways - any way - to get past the dead-end where it is now. Thoughts? Or is this just too far out there?
For international partners, using US as the feed carrier makes zero sense. At LAX/SFO/ORD/DFW/JFK/EWR/ATL/IAD/SEA and other major international gateways US provides very little feed. PHL/CLT/PHX are just not major hubs when you are taking about international carriers outside of North America serving them.

DL's hubs and focus cities are much more complementary to KE.
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Old Aug 27, 2013, 1:43 pm
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Originally Posted by sfozrhfco
For international partners, using US as the feed carrier makes zero sense. At LAX/SFO/ORD/DFW/JFK/EWR/ATL/IAD/SEA and other major international gateways US provides very little feed. PHL/CLT/PHX are just not major hubs when you are taking about international carriers outside of North America serving them.

DL's hubs and focus cities are much more complementary to KE.
This is mostly true. AS's hubs are also more complementary to KE.

Re: US, however, you missed LAS. KE does already have a 747 (at least, so it's been on the days I've seen it there) to LAS daily I believe, and could easily ramp it up.
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Old Aug 27, 2013, 1:50 pm
  #55  
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Originally Posted by RealHJ
Re: US, however, you missed LAS. KE does already have a 747 (at least, so it's been on the days I've seen it there) to LAS daily I believe, and could easily ramp it up.
US barely serves LAS anymore. They only fly to CLT, PHL, DCA, and PHX from there and KE already serves IAD. DL actually serves more destinations from LAS than US.
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Old Aug 27, 2013, 2:13 pm
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I read somewhere DL bought shares of JAL during their brink of bankrupcy sometime back? Maybe JAL will move to ST?
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Old Aug 27, 2013, 2:19 pm
  #57  
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Originally Posted by skchin
I read somewhere DL bought shares of JAL during their brink of bankrupcy sometime back? Maybe JAL will move to ST?
Nope, there was talk of that happening, but it never did.
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Old Aug 27, 2013, 2:21 pm
  #58  
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Originally Posted by dw
B/c many people aren't just going to East Asia, MNL, BKK or SIN?
How many destinations are left that DL does not serve in Asia that are actually worthwhile the $$$ invested?
HAN or SGN? You think DL is at all interested in ATL/DTW/SEA-HAN? Trashy yields much? Or better yet: ATL-PNH???

Look on a map. There are not that many Asia destinations in the first place.
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Old Aug 27, 2013, 2:25 pm
  #59  
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Delta's Official Response on the KE / DL Codeshare flight changes

I obtained an official response from Delta Corporate and shared it over at my blog which you can read about here.
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Old Aug 27, 2013, 2:30 pm
  #60  
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Originally Posted by dieuwer2
Look on a map. There are not that many Asia destinations in the first place.
This made me laugh out loud harder than anything I've read in a while!
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