View Single Post
Old Apr 26, 16, 5:15 pm
A FlyerTalk Posting Legend
Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 91,835
Originally Posted by Longboater View Post
Then, by this logic, all of the route applications, irrespective of alliances, should be put forward to DOT and DOT should approve the routes that have the greatest potential to maximise investment to the respective airlines.

Since MSP is a goldmine for DL, applying for MSP-HND ensures higher fares due to the nonexistent competition on MSP-TYO, thus maximising return on investment to shareholders instead of say JFK-HND which absolutely would face competition from NH or JAL or both. However, why then would DL also apply for LAX-HND since they will definitely face competition from ANA and AA, thus launching a potential fare war between the three? Well, we all know that DL is trying to "win" LA just as they have successfully pushed out much of AA's former marketshare in NYC. If DL was only interested in these routes maximising market share, DTW-HND, rather than LAX-HND, would have received an application due to DL's strong yields in DTW. ATL-HND is a given and is all but assured of a daytime slot.
NO. DL properly has one objective which is not the same as the government's goal. DL should take government policy as a constraint (that they might be able to influence) and react accordingly.
MSPeconomist is offline