Delta Air Lines Seeks Premium Status in Asia
#61
Join Date: Jun 2008
Location: MSP
Programs: DL PM
Posts: 768
Here's a question for the folks who pine for the "good old days" - If NWA was such a strong player in the Asian market with such a widely recognized, and respected brand: Why did NWA go through an expensive rebranding effort at a difficult time to remove all vestiges of "Orient" from their identity and to change their logo (which presumably would be easier for people who don't use Latin alphabets to recognize)?
Something just doesn't make sense in the arguments being presented.
Something just doesn't make sense in the arguments being presented.
#62
Join Date: Aug 2001
Location: Wayne, PA USA
Programs: DL MM, Marriott Bonvoy Lifetime Titanium, HHonors Gold
Posts: 7,242
Ah, thanks for the explanation. Given what you say, it seems even more foolish to change the visual identity. Not that it matters now, of course.
#63
Join Date: Sep 2009
Programs: UA GS>1K>Nothing; DL DM 2MM; AS 75K>Nothing>MVP
Posts: 9,341
DELTA ARE YOU KIDDING ME?? HARGH HARGH
This must be a new business strategy. Do everything possible to lose the trust and loyalty of your existing customers (make it impossible to get TPAC upgrades at a reasonable price, take away lounge access for Asian GMs without telling anyone, be the last carrier to put in flat-bed seats on Asian routes, secretly raise mileage redemption rates for intra-Asia award travel, etc. etc) and then put out a press release saying you're seeking to become a premium carrier in Asia.
Maybe it's like a management restructuring but targeted at the passengers instead. You get rid of all your top passengers. They could call it a Passenger Restructuring Program.
Or maybe there was a typo in the press release. It should have read Laughingstock Carrier not Premium Carrier.
This must be a new business strategy. Do everything possible to lose the trust and loyalty of your existing customers (make it impossible to get TPAC upgrades at a reasonable price, take away lounge access for Asian GMs without telling anyone, be the last carrier to put in flat-bed seats on Asian routes, secretly raise mileage redemption rates for intra-Asia award travel, etc. etc) and then put out a press release saying you're seeking to become a premium carrier in Asia.
Maybe it's like a management restructuring but targeted at the passengers instead. You get rid of all your top passengers. They could call it a Passenger Restructuring Program.
Or maybe there was a typo in the press release. It should have read Laughingstock Carrier not Premium Carrier.
#64
Join Date: Jan 2003
Location: Fairfield County, CT USA
Programs: AA PLT+2MM / DL DM+1MM / A3 *G / Fairmont LT Plat / Ritz Gold / SPG Gold
Posts: 4,077
I think it's an incredibly ambitious goal. It is possible for American brands and products to be perceived as "luxury" or "prestige" in Asia. Examples include Apple, Polo, and Ritz Carlton.
Even with the hard product improvements, Delta's going to have challenges changing their perception from say"nice" to "luxury". For example, while the 777 BusinessElite hard product is certainly comfortable, it doesn't "look" luxurious. The colors and materials, for example, tie it too closely to the coach product.
Even with the hard product improvements, Delta's going to have challenges changing their perception from say"nice" to "luxury". For example, while the 777 BusinessElite hard product is certainly comfortable, it doesn't "look" luxurious. The colors and materials, for example, tie it too closely to the coach product.
Indeed, Buick is an aspirational brand in China and Samsonite luggage is a premium product line in many parts of Asia. Similarly, Stella Artois, positioned as a premium beer in the US, is a peasant beer in Belgium ... And no Australian actually drinks Fosters ... Its their joke on Americans.
Against that, DLs j product is so inferior to cx, sq and certain others in the region that any premium fare pax will stick with who is best. Compare the best crown room/sky club in the system to the long bar ar hkg or the "private room" at sin ... You'd think the sky club is the discounted y lounge.
Americans nailed it on the design of the iPod/iPad, got a few en to the moon... but we seem incapable of running a true premium airline!
Last edited by NYBanker; Feb 18, 2011 at 8:33 pm Reason: En to the moon was men to the moon. Bloody iPad ... Cool as it may be ... Not good for editing threads!
#65
Join Date: Dec 2005
Location: Japan
Posts: 5,577
To become a Premier Carrier you need to offer flights at convenient times, frequently, and provide premium cabin service as well as a superior hard product. Just as an example the NRT flights to BKK and SIN arrive at midnight at their destinations and leave early, early a.m. forcing pax to leave their homes or hotels at 4-5 a.m. I would call that inconvenient and I leave a comment about premium cabin service and the hard product open, because all of us already know the answer. Asian carriers, Premium or not, offer 5-12 daily services, sometimes more. Some on A380 or 747s.
Also, who wants to go through the painfully annoying security procedures when one takes a U.S. airline, combined to the easy walk through for Asian or for that matter, European carriers, when they provide Intra-Asian service.
Sure, I am stuck with a similar pattern with UA now, but at least they don't pretend and don't claim to be a Premium carrier in and/or for Asia. Know the role that you are assigned to play!!!
May I also point out that they are primarily talking about service out of NRT.
Premium Asian service goes many, many ways. Not just out of NRT. DL by nature of it's business fills probably most of their ongoing traffic out of NRT with transit/connecting pax originating in the U.S. A good portion of the remaining seats to be filled comes from contracts they have taken over from the PMNW days. The rest originates from contracts that have been signed at the corresponding destinations also during PMNW days. Where does the added passenger supply originate? From China, of course. No recession there, au contraire. But how long will that last? Trust me, DL still has no name recognition in Asia.
DL fired all the knowledgeable and experienced NW management in Japan and Asia. Vinay Dube, DL's senior VP Asia/Pacific has pretty big shoes to fill. Researching his previous CV, he surely has no experience in that market.
Also, who wants to go through the painfully annoying security procedures when one takes a U.S. airline, combined to the easy walk through for Asian or for that matter, European carriers, when they provide Intra-Asian service.
Sure, I am stuck with a similar pattern with UA now, but at least they don't pretend and don't claim to be a Premium carrier in and/or for Asia. Know the role that you are assigned to play!!!
May I also point out that they are primarily talking about service out of NRT.
Premium Asian service goes many, many ways. Not just out of NRT. DL by nature of it's business fills probably most of their ongoing traffic out of NRT with transit/connecting pax originating in the U.S. A good portion of the remaining seats to be filled comes from contracts they have taken over from the PMNW days. The rest originates from contracts that have been signed at the corresponding destinations also during PMNW days. Where does the added passenger supply originate? From China, of course. No recession there, au contraire. But how long will that last? Trust me, DL still has no name recognition in Asia.
DL fired all the knowledgeable and experienced NW management in Japan and Asia. Vinay Dube, DL's senior VP Asia/Pacific has pretty big shoes to fill. Researching his previous CV, he surely has no experience in that market.
#66
Join Date: Jul 2010
Location: LGA/JFK
Programs: DL PM, UA Premier, AA Gold, Hertz PC, National Exec Elite, Sixt Plat
Posts: 500
I've always been a DL fan since I first flew them as a kid in the early 90s on an L-1011 LAX-ATL (they always used the T6 gates for that flight... FL 264).
Anyway, I hope that DL does do well but I agree, the competition is fierce. I fly to ICN two or three times a year and last year, I flew it on KE, OZ, and UA. Hands down, KE has the best service in coach, then OZ. UA was just horrendous.
I think if DL just retrained their Asia flight attendants, that could really help. There are things that Asians want on a flight (I'm a Korean-American). When I fly KE or OZ, I expect there to be tea, good Korean food, and just a great level of service.
Case in point: I flew from IAD to ICN on KE. It seemed like because the flight attendant didn't have anything to do (it was between the two meals), she kept cleaning the lavatories after pax used them. It's that sort of attentive service that is severely lacking on US-based carriers.
I'd have to say that because most US-based carriers usually have senior flight attendants on the int'l flights, they feel a sense of entitlement whereas the flight attendants on Asian carriers tend to be thankful that they were picked (competition is fierce in Korea to become a KE flight attendant) and do their jobs at the best of their ability.
I also think this goes to the level of service generally in Asia. Compare service from McDonald's in Asia to the US... that's basically what it is with the airlines.
Anyway, I hope that DL does do well but I agree, the competition is fierce. I fly to ICN two or three times a year and last year, I flew it on KE, OZ, and UA. Hands down, KE has the best service in coach, then OZ. UA was just horrendous.
I think if DL just retrained their Asia flight attendants, that could really help. There are things that Asians want on a flight (I'm a Korean-American). When I fly KE or OZ, I expect there to be tea, good Korean food, and just a great level of service.
Case in point: I flew from IAD to ICN on KE. It seemed like because the flight attendant didn't have anything to do (it was between the two meals), she kept cleaning the lavatories after pax used them. It's that sort of attentive service that is severely lacking on US-based carriers.
I'd have to say that because most US-based carriers usually have senior flight attendants on the int'l flights, they feel a sense of entitlement whereas the flight attendants on Asian carriers tend to be thankful that they were picked (competition is fierce in Korea to become a KE flight attendant) and do their jobs at the best of their ability.
I also think this goes to the level of service generally in Asia. Compare service from McDonald's in Asia to the US... that's basically what it is with the airlines.
#67
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I'd have to say that because most US-based carriers usually have senior flight attendants on the int'l flights, they feel a sense of entitlement whereas the flight attendants on Asian carriers tend to be thankful that they were picked and do their jobs at the best of their ability.
You'll never see DL doing anything like this, and that is the problem.
Across the World with the Singapore Girl
#68
Original Poster
Join Date: Jan 2008
Location: Upstate, NY
Posts: 3,359
On a 12 hour flight the lavs HAVE to get cleaned...but can Delta get an FA with 30 years seniority to actually CLEAN a lav?
#69
Join Date: Jul 2009
Location: BWI
Programs: HHonors Diamond, SPG Gold
Posts: 767
Senior indeed, in many ways. Hard to see how DL can even come close to offering a soft product as good as SQ or CX, given the cultural differences and without being sued for age, weight or attractiveness discrimination.
You'll never see DL doing anything like this, and that is the problem.
Across the World with the Singapore Girl
You'll never see DL doing anything like this, and that is the problem.
Across the World with the Singapore Girl
Think of it like refs in any major US sporting event. NFL, NHL, NBA refs for the championship series are picked based upon a review of their performance during the season as well as playoffs. DL may want to do something similar instead of just being based on seniority if they are going to focus on boosting their TPAC image.
#70
FlyerTalk Evangelist
Join Date: Jun 2008
Programs: Formaldehyde Medallion DL DieMiles
Posts: 12,646
This just posted to nytimes.com
http://www.nytimes.com/aponline/2011...-Lines.html?hp
I am glad that Delta is being ambitious...but as much as I like Delta and support Delta...I've noticed that often their reach exceeds their grasp...
Becoming a premium airline in Asia is going to be an uphill battle and I honestly think that they might be better off being a high volume value carrier...
To become a premium carrier they will have to drastically improve the economy experience and start making BusinessElite much more exclusive...which means no more packing it full of non-revs!
http://www.nytimes.com/aponline/2011...-Lines.html?hp
I am glad that Delta is being ambitious...but as much as I like Delta and support Delta...I've noticed that often their reach exceeds their grasp...
Becoming a premium airline in Asia is going to be an uphill battle and I honestly think that they might be better off being a high volume value carrier...
To become a premium carrier they will have to drastically improve the economy experience and start making BusinessElite much more exclusive...which means no more packing it full of non-revs!
But Vinay Dube, Delta's senior vice president for the Asia Pacific, said Thursday the Atlanta-based company believes it can compete with the region's most reputable carriers.
[emphasis mine]How does a company announce an ambitious goal, make a statement like this, and in the same week, alienate a significant fraction of their regional customers by egregiously jacking up FF mileage redemption requirements?
How many DL customers in the region would select "reputable" as their adjective of choice to describe DL right now?
What sort of "intellects" are running DL?
#71
Join Date: Nov 2006
Programs: DL Platinum
Posts: 556
DELTA ARE YOU KIDDING ME?? HARGH HARGH
This must be a new business strategy. Do everything possible to lose the trust and loyalty of your existing customers (make it impossible to get TPAC upgrades at a reasonable price, take away lounge access for Asian GMs without telling anyone, be the last carrier to put in flat-bed seats on Asian routes, secretly raise mileage redemption rates for intra-Asia award travel, etc. etc) and then put out a press release saying you're seeking to become a premium carrier in Asia.
Maybe it's like a management restructuring but targeted at the passengers instead. You get rid of all your top passengers. They could call it a Passenger Restructuring Program.
Or maybe there was a typo in the press release. It should have read Laughingstock Carrier not Premium Carrier.
This must be a new business strategy. Do everything possible to lose the trust and loyalty of your existing customers (make it impossible to get TPAC upgrades at a reasonable price, take away lounge access for Asian GMs without telling anyone, be the last carrier to put in flat-bed seats on Asian routes, secretly raise mileage redemption rates for intra-Asia award travel, etc. etc) and then put out a press release saying you're seeking to become a premium carrier in Asia.
Maybe it's like a management restructuring but targeted at the passengers instead. You get rid of all your top passengers. They could call it a Passenger Restructuring Program.
Or maybe there was a typo in the press release. It should have read Laughingstock Carrier not Premium Carrier.
#72
Join Date: Dec 2002
Location: Meechigan
Posts: 1,006
The day that DL FAs clean the lavs mid-flight is the day this press release becomes something more than Wall St. spin.
#73
Join Date: Sep 2009
Location: HNL
Programs: DL PM/1MM, BW DE (lifetime), HH DE, Marriott PE (lifetime), National Emerald Executive
Posts: 7,205
Hmmm, let's see... typical Y seat vs. lie-flat, coach menu vs. 4-course meal served on china and linens, typical meager Y snacks vs. a la carte menu with 10 snack and meal choices (both hot and cold) available anytime during the flight, lav-to-passenger ratio that is 2 or 3 times higher, FA-to-pax ratio that is 2 to 3 times higher, slippers vs. no slippers, cardigans vs. no cardigans, champagne, vintage wines, etc. etc.
I think you get the picture... I doubt many will agree that KE Y is better than JL C.
I think you get the picture... I doubt many will agree that KE Y is better than JL C.
#74
Join Date: Sep 2009
Location: HNL
Programs: DL PM/1MM, BW DE (lifetime), HH DE, Marriott PE (lifetime), National Emerald Executive
Posts: 7,205
Plus, to be a carrier in Asia and not just for US connecting pax, there have to be (a lot) more than 1x daily flights to Asia destinations, and they have to leave at convenient times, not arrive past midnight and leave at super inconvenient times like 5am (only to then have to wait some 6-9 hours for a connection at NRT).
#75
Join Date: May 2009
Location: Seattle, WA
Programs: DL Diamond 1.7MM, Starlux Insighter, Bonvoy Titanium, Hilton Gold, Hertz PC
Posts: 3,949
The West Coast? Really? SEA and PDX have been always semi-hubs for NW, but DL has been practicaly absent.
Pre-merger NW had 2 x daily SEA-HNL, and also SEA to KOA and OGG.
After merger DL has just 1 x daily SEA-HNL.
That's just an example to show how after merger ther is far less of "new" Delta presence, as there was before of just NW.
Pre-merger NW had 2 x daily SEA-HNL, and also SEA to KOA and OGG.
After merger DL has just 1 x daily SEA-HNL.
That's just an example to show how after merger ther is far less of "new" Delta presence, as there was before of just NW.
With the larger SkyClub under construction, a second daily SEA-AMS flight, new routes to China, and more Asia flying rumored - Delta is hardly "practically absent". If anything, they're successfully running the new UA out of town...