Delta to add Seattle-Osaka, Drops SEA-HKG
#271
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1. How about SFO?
2. HKG is more than a financial hub. It actually serves as a gateway to Asia as well. For example, Apple is one of the major UA's customer for SFO-HKG (Apple's products are manufactured by Foxconn, which has a massive production facility in Shenzhen, just north of Hong Kong.)
2. HKG is more than a financial hub. It actually serves as a gateway to Asia as well. For example, Apple is one of the major UA's customer for SFO-HKG (Apple's products are manufactured by Foxconn, which has a massive production facility in Shenzhen, just north of Hong Kong.)
SFO is nearly 25% larger than SEA already generating a larger population from which to draw traffic (again, as I posted, local population is not the only factor but it is a factor) and is also a major financial center. SFO is also a very large and well-established hub for UA.
Between this and your contradictions in the same post on DL having spare capacity versus not having spare capacity in the fleet, I'm beginning to think you don't understand the subject you're trying to talk about.
While there's some cross-flow between the two areas, and probably even decent local traffic between the two areas, they are two different markets in different countries. YVR is also a hub for a *A airline (AC). I don't have a crystal ball. I'm not saying the SEA hub will pan out. Only time and the market will tell that.
Last edited by ATOBTTR; Jul 23, 2018 at 6:32 pm
#272
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SEA has always had some TPAC service because of its geography in the PNW and, in the 20th century, aircraft range limitations (NW used it extensively in serving Asia for many years). I actually think DL knew exactly what it was getting into. After all, DL had the failed PDX Asia hub in the early 90's (talk about a metro area being to small!!). They also have the legacy NW history of serving Asia extensively through SEA. SEA is still a relatively new hub for DL and they are still experimenting with the right mix of international flights.
#273
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I think that says volumes about DL's attempt to "force" SEA into a hub for Asia-bound/Asia-originating travelers. DL simply couldn't (or wouldn't) compete with the other giants at SFO and LAX, so they decided to leverage (aka force) their relative domestic strength at SEA into a Transpacific hub of their own.
DL still doesn't have enough domestic feed into SEA, and -- while SEA has a large corporate base and significant Asian population for VFR travel -- it still is only a marginally larger market than, for example, MSP, which has much greater domestic feed. It can't compete with SFO/LAX in the O/D traffic that really helps a hub thrive, or even ORD/NYC which are longer hauls but are much stronger markets than SEA (or MSP, DTW, or ATL).
Even well after the merger, the USA->NRT->Asia points onward model is still best for DL's US hubs and route network. It'll be a number of years before they are able to replicate that setup via ICN and KE, and until then, DL will continue to have sub-par connectivity to/from Asia when compared to the other US carriers.
DL still doesn't have enough domestic feed into SEA, and -- while SEA has a large corporate base and significant Asian population for VFR travel -- it still is only a marginally larger market than, for example, MSP, which has much greater domestic feed. It can't compete with SFO/LAX in the O/D traffic that really helps a hub thrive, or even ORD/NYC which are longer hauls but are much stronger markets than SEA (or MSP, DTW, or ATL).
Even well after the merger, the USA->NRT->Asia points onward model is still best for DL's US hubs and route network. It'll be a number of years before they are able to replicate that setup via ICN and KE, and until then, DL will continue to have sub-par connectivity to/from Asia when compared to the other US carriers.
2) DL has a limited number of gates for both domestic and international routes.
I think SEA is the right strategy since SFO is UA's hub. LAX is very competitive and makes for inefficient connections for most of the country. SEA makes sense due to its location.
I realize DL was making the decision with data I don't have as well as priorities I don't have, and it's also been discussed elsewhere in this forum, but in my own opinion, this is why I think DL was short-sighted to sever ties with AS the way it did. While I realize DL needed some domestic presence of its own at SEA as it built up the hub, I wish (and think) they should have maintained the AS partnership and looked at the partnership as an advantage to feed int'l traffic at SEA rather than as a barrier to their goals at SEA, especially given how well established AS is here in the SEA and throughout the rest of the West Coast. I think they could have used that partnership to better feed their international flights, perhaps even drawn up a more exclusive relationship between the two. Of course it doesn't matter now - that's all now "if"....
#274
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Originally Posted by garykung
Good luck getting anyone here to agree with this.
1. How about SFO?
2. HKG is more than a financial hub. It actually serves as a gateway to Asia as well. For example, Apple is one of the major UA's customer for SFO-HKG (Apple's products are manufactured by Foxconn, which has a massive production facility in Shenzhen, just north of Hong Kong.)
1. How about SFO?
2. HKG is more than a financial hub. It actually serves as a gateway to Asia as well. For example, Apple is one of the major UA's customer for SFO-HKG (Apple's products are manufactured by Foxconn, which has a massive production facility in Shenzhen, just north of Hong Kong.)
You do realize that SEA and YVR are in different countries, right? It's not a simple two hour drive between those two cities due to the fact you have to cross a border to get from the US to Canada and it usually takes even longer to get back.
#275
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Good luck getting anyone here to agree with this.
1. How about SFO?
2. HKG is more than a financial hub. It actually serves as a gateway to Asia as well. For example, Apple is one of the major UA's customer for SFO-HKG (Apple's products are manufactured by Foxconn, which has a massive production facility in Shenzhen, just north of Hong Kong.)
Not correct. The smallest ever U.S. market served by any airlines from Hong Kong is SPN, which is served by HX and UO nonstop and UA with connections.
SPN and GUM are 2 forgotten U.S. markets that even DL has abandoned.
SEA is a poor choice for TPAC hubs, given its proximity to YVR.
1. How about SFO?
2. HKG is more than a financial hub. It actually serves as a gateway to Asia as well. For example, Apple is one of the major UA's customer for SFO-HKG (Apple's products are manufactured by Foxconn, which has a massive production facility in Shenzhen, just north of Hong Kong.)
Not correct. The smallest ever U.S. market served by any airlines from Hong Kong is SPN, which is served by HX and UO nonstop and UA with connections.
SPN and GUM are 2 forgotten U.S. markets that even DL has abandoned.
SEA is a poor choice for TPAC hubs, given its proximity to YVR.
#276
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For all intents and purposes, the geographical of the U.S. does include both territories of Guam and CNMI.
SFO is nearly 25% larger than SEA already generating a larger population from which to draw traffic (again, as I posted, local population is not the only factor but it is a factor) and is also a major financial center. SFO is also a very large and well-established hub for UA.
I pointed out SFO because you claim SEA is a technology hub, which is not really the case. Among the largest tech. companies, only Amazon and Microsoft (I can throw in Nintendo as well) are located near Seattle. On the other hand, the famous Silicone Valley is near SFO, where tons of tech. companies house their HQs or campuses.
While there's some cross-flow between the two areas, and probably even decent local traffic between the two areas, they are two different markets in different countries. YVR is also a hub for a *A airline (AC). I don't have a crystal ball. I'm not saying the SEA hub will pan out. Only time and the market will tell that.
#277
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Well in your quest to be Mr. Technical, you are wrong here. Technically YVR, with a metro area of ~2.5 million, is the smallest market in North America market with HKG passenger service, as the SEA metro area population is about 3.7 million. So while harassing me about “forgetting” that GUM and SPN were part of the US, I guess you forget that “for all intents and purposes”, Canada, and YVR specifically, is part of North America.....
Maybe instead of geography technicalities you can try focusing on the big picture?
#278
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Well in your quest to be Mr. Technical, you are wrong here. Technically YVR, with a metro area of ~2.5 million, is the smallest market in North America market with HKG passenger service, as the SEA metro area population is about 3.7 million. So while harassing me about “forgetting” that GUM and SPN were part of the US, I guess you forget that “for all intents and purposes”, Canada, and YVR specifically, is part of North America.....
Maybe instead of geography technicalities you can try focusing on the big picture?
Maybe instead of geography technicalities you can try focusing on the big picture?
You make the SEA claim as the smallest market, not me. Beside, even Greater Vancouver area has less population than Seattle area, the minorities population of Greater Vancouver, especially Asian, is close to 50% of the area, while Seattle has 30% of minorities population at best. So one could argue that YVR has a better potential as a TPAC hub than SEA, or at the minimum, a larger market.
Now back to the regular schedule.
#279
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Well in your quest to be Mr. Technical, you are wrong here. Technically YVR, with a metro area of ~2.5 million, is the smallest market in North America market with HKG passenger service, as the SEA metro area population is about 3.7 million. So while harassing me about “forgetting” that GUM and SPN were part of the US, I guess you forget that “for all intents and purposes”, Canada, and YVR specifically, is part of North America.....
Maybe instead of geography technicalities you can try focusing on the big picture?
If you breakdown the demographics of the greater Vancouver area you will see that it is the biggest HKG flight market.
As an airport YVR at the present is better equipped to handle TPAC inbound. They still have landing slots and gates available for additional flight.
When DL was running DTW HKG they were price battling the Southwestern Ontario market as well as Toronto .
IIRC they were undercutting discounted Y fare of the Direct YYZ HKG flights by $200-300.
The HKG North American Market buyer's are:
Family visit
Family visit with means to fly J
Price sensitive corporate flyers
then
Price insensitive flyers or company with DL contracts.
#280
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I pointed out SFO because you claim SEA is a technology hub, which is not really the case. Among the largest tech. companies, only Amazon and Microsoft (I can throw in Nintendo as well) are located near Seattle. On the other hand, the famous Silicone Valley is near SFO, where tons of tech. companies house their HQs or campuses.
So ignoring the second and third largest tech firms in the world (and who are the clear number #1 and #2 in Cloud computing) both being headquartered in the area, as well as the many other firms that each have thousands of people working in tech in the area, it isn't a tech hub?
#281
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Not a tech hub? HAHAHA.
So ignoring the second and third largest tech firms in the world (and who are the clear number #1 and #2 in Cloud computing) both being headquartered in the area, as well as the many other firms that each have thousands of people working in tech in the area, it isn't a tech hub?
So ignoring the second and third largest tech firms in the world (and who are the clear number #1 and #2 in Cloud computing) both being headquartered in the area, as well as the many other firms that each have thousands of people working in tech in the area, it isn't a tech hub?
"setting aside GM, Ford, and Chrysler, Detroit is not an automotive hub"
#282
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You make the SEA claim as the smallest market, not me. Beside, even Greater Vancouver area has less population than Seattle area, the minorities population of Greater Vancouver, especially Asian, is close to 50% of the area, while Seattle has 30% of minorities population at best. So one could argue that YVR has a better potential as a TPAC hub than SEA, or at the minimum, a larger market.
Now back to the regular schedule.
Now back to the regular schedule.
And you still haven’t explained your contradiction in the “spare aircraft” remarks and how in the same posts, in one part you say “Delta now has two spare aircraft” due to SEA-HKG being cut then in another part of that same post say Delta has “no spare aircraft”.
BUT
If you breakdown the demographics of the greater Vancouver area you will see that it is the biggest HKG flight market.
As an airport YVR at the present is better equipped to handle TPAC inbound. They still have landing slots and gates available for additional flight.
When DL was running DTW HKG they were price battling the Southwestern Ontario market as well as Toronto .
IIRC they were undercutting discounted Y fare of the Direct YYZ HKG flights by $200-300.
The HKG North American Market buyer's are:
Family visit
Family visit with means to fly J
Price sensitive corporate flyers
then
Price insensitive flyers or company with DL contracts.
If you breakdown the demographics of the greater Vancouver area you will see that it is the biggest HKG flight market.
As an airport YVR at the present is better equipped to handle TPAC inbound. They still have landing slots and gates available for additional flight.
When DL was running DTW HKG they were price battling the Southwestern Ontario market as well as Toronto .
IIRC they were undercutting discounted Y fare of the Direct YYZ HKG flights by $200-300.
The HKG North American Market buyer's are:
Family visit
Family visit with means to fly J
Price sensitive corporate flyers
then
Price insensitive flyers or company with DL contracts.
#283
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The presence of the majors also supports a healthy ecosystem of very successful second tier tech companies - Tableau, Expedia, Zillow, Valve and Redfin are some good examples.
Where Seattle falls down is the startup scene - there are a few of us, but by and large the capital investment is in the Bay Area, and most funds like to have their companies close to offer adult supervision for their money.
#284
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And I guess you forgot or didn’t notice in the posts you quoted where I previously mentioned about YVR being a smaller market when looked at as total MSA (metro population), but that this was only a factor in a market and not the only factor in a a market. I’m well aware other market factors come into play - that’s how this whole discussion started until you decided to derail it with poor attempts at geography lessons - by me posting that SEA and HKG are different markets with different primary industries, hence a possibly explanation as part of why SEA-HKG didn’t perform as well as hoped and is being cut.
And you still haven’t explained your contradiction in the “spare aircraft” remarks and how in the same posts, in one part you say “Delta now has two spare aircraft” due to SEA-HKG being cut then in another part of that same post say Delta has “no spare aircraft”.
I mentioned and admitted at least twice upthread - that although YVR was a smaller market in terms of total MSA, that total MSA was only a factor and not the only factor. Then garykung decided it was more important to derail the discussion and play geography games. But I’m well aware that other factors besides just total population play a role, hence why a cities like HNL, MCO, and LAS have a ton of service relative to their MSA populations. Because of other market factors.
While the geographic proximity is interesting - it allowed Delta to siphon off the occasional connecting passenger in the YVR-HKG market, and sometimes creates an incentive for Seatteites to drive north or fly AC - the markets are effectively separate.
AC may get some connecting corporate traffic for their YVR flights, but CX doesn’t really have any feed from Seattle right now (the AS relationship is relatively new and they haven’t been aggressive about filing codeshares).
The biggest reason YVR is a factor is simply that Hong Kongers who wanted to live in the Pacific NW mostly chose BC and not Washington as their base to be near the rest of the community. That ethnic distribution - giving Seattle a much healthier minority population of Korean and Japanese immigrants - directly affects O&D numbers.