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Joint Venture Between Korean Air and Delta Announced — Effective as of May 1, 2018

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Old Mar 29, 2017, 7:29 am
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Last edit by: TWAforever
DL/KE current flights between ICN and North America:

Originally Posted by kop84
Currently KE has ATL, ORD, DFW, HNL, IAH, LAS, LAX, JFK, SFO, SEA, IAD, YYZ and YVR

DL currently (or soon) has SEA, DTW, ATL

Update from Delta News Hub (28MARCH17):

http://news.delta.com/delta-and-kore...nd-partnership

Will this mean a move from Group 4 partner to Group 1? Delta SkyMiles PR rep says:

"... the details you’re looking for will be figured out further down the road"

Further from the Delta press release on the date of the JV agreement being signed, 6/23/17:

Delta and Korean Air will lay the groundwork for implementing all aspects of the joint venture, subject to regulatory approvals, including:
  • Expanded codesharing in the trans-Pacific market
    • Joint sales and marketing initiatives in Asia and the United States
      • Colocation at key hubs with seamless passenger and baggage transit experience
        • Enhanced frequent flyer benefits, providing customers of both airlines the ability to earn and redeem miles on Delta's SkyMiles and Korean Air's SKYPASS programs
          • Increased belly cargo cooperation across the trans-Pacific
            • Under the agreement, the airlines will also share costs and revenues on flights within the scope of the joint venture as they work to expand service options for travelers.

It cited no date for the enhanced FF benefits to be effective.

New Delta SkyMiles mileage earn chart, including MQMs and MQDs, for Korean Air flights effective May 1, 2018. See posts #566 and #567 for details.
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Joint Venture Between Korean Air and Delta Announced — Effective as of May 1, 2018

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Old Mar 29, 2018, 12:16 pm
  #496  
 
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Originally Posted by 3Cforme
True, but that was before the USA-Asia market fragmented. Lots of traffic ran through NRT that won't have to go thru ICN - PEK, PVG and HKG, among them.
The market may be fractured, but MSP can probably handle 2 TPAC flights. Plus I don't think the MSP/DTW catchment area for TPAC flights would overlap that much. DTW is going to pull from upstate NY, and the Ohio River Valley, where MSP is going to pull more from Iowa, Wisconsin, the Dakotas, and some Missouri. If I'm DL I'm more worried if I can pull people who currently connect in ORD not already on KE.

Originally Posted by MSPeconomist
However, a big difference is that we can upgrade with miles or certs (and similarly with miles on PMNW) on DL operated flights. Being stuck in coach on KE is not equivalent.
But you're talking about a relatively small percentage of travelers that would be affected by that. The vast majority of people are not Diamond that would get GUC's so it's not really a thing they worry about. Even if DL flew a 777 MSP to ICN, it's still only 37 D1 seats to fill daily. And not just to ICN, but to basically all of East Asia (except China) Plus DL/KE may be able to come to an agreement on those now.
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Old Mar 29, 2018, 1:12 pm
  #497  
 
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Hopefully this means more than one prestige seat available for redemption. Most KE flights I've been on in J have been about 1/3 full, and yet no extra award seats available.
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Old Mar 29, 2018, 2:25 pm
  #498  
 
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Is this the official nail in the NRT Hub coffin?
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Old Mar 29, 2018, 2:45 pm
  #499  
 
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Originally Posted by kjnangre
This is wonderful news that will indeed allow DL to regain competitiveness in TPAC. Especially if they can gradually add a few extra SEA-Asia directs and resume DTW-HKG.

However, it's beyond ridiculous to say that DL is giving up on China. With a population 4 times greater than the USA, and 20 times greater than South Korea, I promise you nothing could be further from the truth. DL has part ownership of MU and I suspect they will continue to grow that partnership (much like in Europe where DL has 2 hubs as well). It's just going to take a bit longer.
Nah DL was attempting to build a hub at PVG. That’s probably dead now. I expect O/D service to continue, with some MU codeshares. The rest KE will cover I imagine.
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Old Mar 29, 2018, 3:20 pm
  #500  
 
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Originally Posted by estedman
Is this the official nail in the NRT Hub coffin?
I don' think so. Delta has insufficient flights into/out of Tokyo, and HND slots are controlled by US/Japan slot agreements. As written in Cranky Flyer, I agree, Delta will hold onto the skeleton operation at NRT until Delta attain four more flight slots to HND, namely SEA, ATL, DTW and HNL.

With Four More Tokyo/Haneda Slots, Delta Could Pull Out of Its Ever-Shrinking Narita Hub Entirely | Cranky Flier

Jiburi
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Old Mar 29, 2018, 3:28 pm
  #501  
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Originally Posted by jiburi
I don' think so. Delta has insufficient flights into/out of Tokyo, and HND slots are controlled by US/Japan slot agreements. As written in Cranky Flyer, I agree, Delta will hold onto the skeleton operation at NRT until Delta attain four more flight slots to HND, namely SEA, ATL, DTW and HNL.

With Four More Tokyo/Haneda Slots, Delta Could Pull Out of Its Ever-Shrinking Narita Hub Entirely Cranky Flier

Jiburi
The remaining US services will presumably remain at NRT, but this might be the nail in the coffin for NRT-SIN, at which point NRT is really just an outstation.
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Old Mar 29, 2018, 3:33 pm
  #502  
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Originally Posted by bgriff
Given the trend with DL's other close partners, this may change in the near future.
I disagree. With AF, you can only upgrade on the TATL segments using GUCs, while KLM allows upgrades for the intraEU segments too. For upgrades using miles, close to full coach fares are required, although upgrades from premium economy to business class on AF have generally been pretty decent deals.KLM has dsome decent day of departure upgrades exAMS using money and miles.
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Old Mar 29, 2018, 3:34 pm
  #503  
 
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Originally Posted by jiburi
I don' think so. Delta has insufficient flights into/out of Tokyo, and HND slots are controlled by US/Japan slot agreements. As written in Cranky Flyer, I agree, Delta will hold onto the skeleton operation at NRT until Delta attain four more flight slots to HND, namely SEA, ATL, DTW and HNL.

With Four More Tokyo/Haneda Slots, Delta Could Pull Out of Its Ever-Shrinking Narita Hub Entirely Cranky Flier

Jiburi
What??? A skeleton operation does NOT constitute a hub. Even if DL holds onto a few NRT slots until it can get HND slots, that would not make NRT a hub. By your definition, almost every city in the US is a hub.
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Old Mar 29, 2018, 3:38 pm
  #504  
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Originally Posted by jiburi
I don' think so. Delta has insufficient flights into/out of Tokyo, and HND slots are controlled by US/Japan slot agreements. As written in Cranky Flyer, I agree, Delta will hold onto the skeleton operation at NRT until Delta attain four more flight slots to HND, namely SEA, ATL, DTW and HNL.

With Four More Tokyo/Haneda Slots, Delta Could Pull Out of Its Ever-Shrinking Narita Hub Entirely Cranky Flier

Jiburi
“NRT Hub” and “NRT operation” are different from each other. The NRT hub is pretty much dead anyway. Palau and Saipan are being cut in May and Shanghai gets cut in July. The only onward connections on DL at NRT after July will be SIN and MNL (and I’ll be curious to see what happens there - if they get axed and SIN and MNL passengers get routed via ICN now). But even if DL gets HND slots to add SEA, ATL, DTW, and HNL, that would still leave PDX and a second HNL flight that would either remain for NRT, unless PDX is dropped completely and HNL is cut to one daily flight. I.e. I believe DL would maybe really need closer to 6 slots at HND to fully abandon NRT.
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Old Mar 29, 2018, 3:38 pm
  #505  
 
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Originally Posted by WWads
Nah DL was attempting to build a hub at PVG. That’s probably dead now. I expect O/D service to continue, with some MU codeshares. The rest KE will cover I imagine.
Right, because the population of Asia is so small compared to Europe, that clearly only 1 hub is required for the entire continent of Asia.
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Old Mar 29, 2018, 3:45 pm
  #506  
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Originally Posted by ATOBTTR

“NRT Hub” and “NRT operation” are different from each other. The NRT hub is pretty much dead anyway. Palau and Saipan are being cut in May and Shanghai gets cut in July. The only onward connections on DL at NRT after July will be SIN and MNL (and I’ll be curious to see what happens there - if they get axed and SIN and MNL passengers get routed via ICN now). But even if DL gets HND slots to add SEA, ATL, DTW, and HNL, that would still leave PDX and a second HNL flight that would either remain for NRT, unless PDX is dropped completely and HNL is cut to one daily flight. I.e. I believe DL would maybe really need closer to 6 slots at HND to fully abandon NRT.
If you look at the linked Cranky Flier article, his argument -- which seems very sound -- is that there is a good chance of the PDX flight being moved to ICN now. And who knows what will happen with HNL, it's entirely possible that NRT could end up just serving a couple of daily HNL flights, the same as Delta's presence at a few other Japanese airports.

As has been said in a few posts now, NRT won't be a hub at that point either way.
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Old Mar 29, 2018, 3:47 pm
  #507  
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Originally Posted by MSPeconomist
I disagree. With AF, you can only upgrade on the TATL segments using GUCs, while KLM allows upgrades for the intraEU segments too. For upgrades using miles, close to full coach fares are required, although upgrades from premium economy to business class on AF have generally been pretty decent deals.KLM has dsome decent day of departure upgrades exAMS using money and miles.
AF is already the outlier among DL's close partners -- KL, VS, and AM all now have reasonably comprehensive upgrade options, and the momentum seems to be in that direction. It's possible KE could end up like AF, but at this point that would be an outlier from the trendline.
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Old Mar 29, 2018, 3:52 pm
  #508  
 
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Originally Posted by ATOBTTR

“NRT Hub” and “NRT operation” are different from each other. The NRT hub is pretty much dead anyway.

I agree.

Originally Posted by ATOBTTR
...that would still leave PDX and a second HNL flight that would either remain for NRT, unless PDX is dropped completely and HNL is cut to one daily flight. I.e. I believe DL would maybe really need closer to 6 slots at HND to fully abandon NRT.
With insufficient connection beyond NRT for PDX flights, PDX flight is already suffering from frequency reduction. PDX NRT flight will be eliminated and replaced with new nonstop to ICN. Doesn't Portland often offer no or reduced fees for new flights?

Jiburi
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Old Mar 29, 2018, 3:56 pm
  #509  
 
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Originally Posted by kjnangre
Right, because the population of Asia is so small compared to Europe, that clearly only 1 hub is required for the entire continent of Asia.
Lol chill dude. The PVG hub is dead. Period. I'd expect to see some increased presence there, but they wouldn't be going full-blown JV with KE if MU was working out. They could consider a JV with China Airlines to add a second East Asia hub, but the mainland politics of that are dicey.
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Old Mar 29, 2018, 3:57 pm
  #510  
 
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Originally Posted by WWads


Nah DL was attempting to build a hub at PVG. That’s probably dead now. I expect O/D service to continue, with some MU codeshares. The rest KE will cover I imagine.
The PVG hub has always a longer-term plan and I have no doubt that it will go ahead. Look at a map and you will see why. The idea that DL was opening a PVG hub tomorrow sprung from the fevered imaginations of the usual FT suspects.
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