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Delta to Move Its Asian Hub?

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Old Jun 13, 2016, 4:31 pm
  #76  
 
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Originally Posted by BenA
I think, given the China Eastern partnership they're trying to build up, Delta would also prefer PVG. If your speculation is true, I wonder if the PDX market would be a good test for Delta's new plan to flow traffic to Asia through Shanghai instead?
PDX seems strange and to me, it acts as an overflow for SEA. Way more connecting flights at SEA vs PDX.

PVG is a bit strange, to compete with one of your biggest partner in China. However, I would personally love a DL hub in PVG - that will dramatically improve my travel life. MU is a good connecting partner for DL.
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Old Jun 13, 2016, 6:28 pm
  #77  
 
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Originally Posted by wlau
PDX seems strange and to me, it acts as an overflow for SEA. Way more connecting flights at SEA vs PDX.

PVG is a bit strange, to compete with one of your biggest partner in China. However, I would personally love a DL hub in PVG - that will dramatically improve my travel life. MU is a good connecting partner for DL.
In a perfect world, DL would have duel Asian hubs, ICN (KE) and PVG (MU), like AMS and CDG in Europe. Let the Asian feeds be done by KE and MU, and add additional flights from US hubs to PVG, e.g., ATL, MSP, etc.

It will also be ideal for DL to be awarded flights to HND from ATL, LAX and MSP, but also retain JFK, DTW and SEA to NRT. DL currently operates out of both Tokyo airports and the flights are usually have a high payload.

The LAX to PEK will also be beneficial for the MU alliance.
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Old Jun 13, 2016, 7:24 pm
  #78  
 
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Originally Posted by wlau
PDX seems strange and to me, it acts as an overflow for SEA. Way more connecting flights at SEA vs PDX.

PVG is a bit strange, to compete with one of your biggest partner in China. However, I would personally love a DL hub in PVG - that will dramatically improve my travel life. MU is a good connecting partner for DL.
Willing to bet that The Swoosh could have staff meetings on PDX/NRT...that's why it's still there.
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Old Jun 13, 2016, 9:01 pm
  #79  
 
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Originally Posted by wlau
PDX seems strange and to me, it acts as an overflow for SEA. Way more connecting flights at SEA vs PDX.
Exactly. SEA already has a PVG flight; by consolidating connecting traffic from the two cities to Shanghai, they could offer MU connections to everyone in the Pacific Northwest. And for the PDX travelers headed to Japan, it's relatively easy for them to bounce off SEA instead...

Originally Posted by wlau
PVG is a bit strange, to compete with one of your biggest partner in China. However, I would personally love a DL hub in PVG - that will dramatically improve my travel life. MU is a good connecting partner for DL.
They wouldn't be competing with MU, they'd be working together. There's a reason MU recently got promoted to a Group 1 SkyMiles partner with dramatically higher earnings - Delta is devoting serious thought and energy to making PVG the replacement for Narita.
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Old Jun 13, 2016, 10:39 pm
  #80  
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Originally Posted by BenA
They wouldn't be competing with MU, they'd be working together. There's a reason MU recently got promoted to a Group 1 SkyMiles partner with dramatically higher earnings - Delta is devoting serious thought and energy to making PVG the replacement for Narita.
Unless Delta and MU obtain antitrust immunity from the US government, Delta and MU will most certainly be in competition. Executives generally don't want to go to prison.

And an immunized joint venture with a Chinese airline won't occur until the US and China agree on an open skies treaty.
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Old Jun 14, 2016, 12:11 am
  #81  
 
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Originally Posted by FWAAA
Unless Delta and MU obtain antitrust immunity from the US government, Delta and MU will most certainly be in competition. Executives generally don't want to go to prison.

And an immunized joint venture with a Chinese airline won't occur until the US and China agree on an open skies treaty.
I agree an immunized joint venture isn't happening anytime soon - but I don't see Delta going as far with this as they do with AF/KL, and I don't really see a world where a large proportion of the TPAC flights would be operated by MU.

I think it would play out more as a simple expansion of the existing codeshare agreement where Delta gets preferential pricing on MU-operated interport flights to get their passengers to their final destination beyond Shanghai. For an arrangement like that, the regulatory approvals would be much lighter.

Remember, Delta already owns 3.5% of MU and has an observer seat on their board of directors...
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Old Jun 18, 2016, 12:20 pm
  #82  
 
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KE

Originally Posted by FireEmblemPride
The lack of real partnership between DL and KE has been a mystery for years. DL has obviously wanted one for years, but it seems KE feels it better to be operating on its own.
Yes. It is actually a Korean cultural thing. Part of the "we are better than you are" attitude.

Someone once asked Nelson Mandela why he was not more angry. His answer was, “If I thought it would be useful, I would be.”
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Old Jun 18, 2016, 6:42 pm
  #83  
 
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Originally Posted by FlyingWithers
Yes. It is actually a Korean cultural thing. Part of the "we are better than you are" attitude.
Well maybe not "we're better than you" so much as "we don't need your help".

In the 90s I was involved in negotiations regarding a JV between my employer and a Korean company. Once the agreement had been signed there was a press conference, and the first question from a Korean reporter was an angry "Why are you doing this? You don't need the help of the Americans, you are Korean and can do it yourself!" (as translated by one of our team members who had been born in Korea)

No surprise, the JV only lasted a few years. In my experience, "Plays well with others" isn't a prized characteristic in Korea, so long as the others aren't Korean.
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