woodenshoe101

Maybe this was mentioned upthread and I missed it, but is there a known end date of the current DL-AS contract?

LarkSFO

http://www.bizjournals.com/seattle/b...rtnership.html

"
“At first we were just sort of shocked, you know, that the thing seemed to be unraveling,” Tilden said Thursday at a Puget Sound Business Journal Live event.
"

"
“Competition is part of life in America," Tilden said. "You can sort of begrudge it if you want to, but our viewpoint is that this has made this the greatest economy in the world and we’re going to use this competition to make Alaska the greatest airline in the world.”

The competition with Delta, and other airlines, will result in a stronger Alaska, Tilden said.
"

Different article, comparing stats:

In the battle for Sea-Tac, here's how Delta and Alaska stack up

"
Overall, Alaska (NYSE: ALK), based in Seattle, continues as the leader at Seattle-Tacoma International Airport, carrying 51.5 percent of passengers in 2014, and 56.5 percent of landings.
Delta (NYSE: DAL) carried just 15.6 percent of the passengers, making 14.2 percent of landings, according to data from the Port of Seattle.
"

3Cforme

Available Seat Miles or Revenue Passenger Miles are better stats of an airline's size. That AS has a bigger percentage of landings than passengers (and DL the reverse) shows that, on average, AS is using smaller aircraft. ASM or RPM would reflect stage length while landings and passenger counts do not.

xliioper

It also would have been helpful to have comparison numbers from previous years. According to the article below, DL was at 12.6% of pax through May 2014, while AS was at 54.2%. Given the final numbers, it looks like the gap narrowed a fair amount by the end of the year. DL had only grown from 11.5% in 2010 to 12.6% through May of last year, so ending up at 15.6% at the end 2014 is pretty significant. While AS percentage went from 54.2% to 51.5%.

http://leehamnews.com/2014/07/01/ala...ted-southwest/

HornsKeith

This might have already been covered, but what happens if you hold an award ticket for AS and your flight will be after the partnership ends? I'm planning an award trip to Hawaii for sometime next year, and AS flights from Seattle are often some of the lowest award methods to get there.

Keith

kop84

I personally still doubt the partnership will end, and can't for the life of me figure out why so many people are practically salivating waiting for the day the partnership ends.

I think the partnership goes until there is no money to be made for one or both sides. Airlines would code with anyone if there is a buck to be made.

FF benefits will continue to be trimmed as each airline wants people on their metal, but at least for now and the next few years they each can still make more money with even a loose partnership than no partnership.

LarkSFO

Who exactly is salivating?

I think most flyers, from both airlines, appreciate the partnership, get value from the partnership, and wonder why both airlines have decided to fight rather than find a way to mend fences and work in a mutually beneficial way.

I don't fly AS or DL a lot (probably ~8 - 10% of my travel), but even as a non-elite infrequent flyer I appreciate being able to pool my miles in AS' plan.

The end of the partnership does not seem to benefit anybody (passengers or airlines).

Best result would be a rapprochement between DL and AS.

Don't see that happening at this point though...

kop84

I guess I see more people wanting the end of the partnership on the AS board. My thoughts are they think ending the DL/AS partnership will make DL give up its aspirations at SEA and AS will be "saved" Or they want AS to join OW and be done with it's Switzerland approach to partnerships

SJC ORD LDR

As an elite flyer, it's not much better than an interline agreement. Yes, you get miles, but no qual dollars, which are more valuable than miles to me. I see little value in the "partnership" anymore.


I don't see AS joining OW. They could have had a closer relationship with DL and chose not to do that. They really believe in their Switzerland approach to partnerships.

I think if AS signed onto the tighter partnership, it would have been beneficial to both AS and DL. But, that bridge has been bombed pretty heavily now.

moondog

AS management didn't feel that DL's terms of cooperation were in its financial best interests. This is their call; not ours.

kop84

I don't see AS joining OW either. My guess is AS though DL would either blink and not start all the domestic service or it would fall on it's face and DL would shrink away quickly.

I'm willing to bet if you gave AS a time machine they would go exclusive with DL. It certainly doesn't look like DL is backing down anytime soon and DL can bleed a lot longer than AS.

LarkSFO

I don't think AS is bleeding right now? (Or, at least, not bleeding that badly)

I think they are being more aggressive / less conservative than they are accustomed to (route & network expansion), but so far it does not seem to have caused any life threatening wounds.

Times like this are good for all the airlines.

Riding out the next downturn successfully will prove who among the the airlines is best managed. And DL and AS are both among the strongest, management wise.

kop84

Agreed no one is bleeding...yet. Until the next economic downturn. If UA can turn a profit right now with half the work force hating the other half and everyone hating the CEO, AS and DL are fine.

I almost wonder if DL is just trying to get AS to over-extend itself. AS keeps adding routes and I wonder where they are getting all of these planes? Because it's not like you can call Boeing and have a new 737 delivered next month.

SJC ORD LDR

You're right in that it was their decision. But, I don't think they predicted DL's response.

One positive is that I can get to Seattle for next to nothing.

moondog

Although I'm not an expert in this field, I'd be willing to bet that the AS folks have had the current scenario on their radar since the beginning of DL's Seattle push.

Furthermore, given the thin playing field and high yields on domestic flights at present, I think AS is well positioned to advance from aa to aaa.