AtlMan

Wow! Was this anticipated? DL and UA codeshare domestically, but how will this impact ACs agreement with UA? Appears that they will stick with both domestic carreirs. Here's the press release:

Friday May 19, 5:30 pm Eastern Time
Company Press Release

SOURCE: Delta Air Lines, Inc.

Air Canada, Delta Air Lines to Form Commercial Pact

ATLANTA, May 19 /PRNewswire/ -- Air Canada and Delta Air Lines (NYSE: DAL - news) today announced they have signed a Letter of Intent that provides for codesharing in North America and expansion of services between each other's hubs. The proposed commercial agreement would become effective October 29, 2000, in conjunction with the commencement of Air Canada's winter schedule.

Frederick W. Reid, Delta's executive vice president and chief marketing officer, said, ``A Delta partnership with Air Canada would provide the traveling public with an extensive and competitive network choice, and would offer avenues for profitable growth by both carriers. The arrangement would link Delta's Atlanta, Cincinnati, Salt Lake City and Dallas/Ft. Worth, hubs to Air Canada's network. Combined with additional transborder flights and Air Canada Regional carrier domestic service, this arrangement would open a broad world of possibilities to our customers.''

``Our partnership with Delta Air Lines will provide Air Canada and Delta passengers with a stronger, more competitive North American network that complements that of our global Star Alliance partner, United Airlines,'' said Lise Fournel, executive vice president, commercial. ``Customers will benefit from improved travel opportunities to markets currently underserved by Air Canada, such as destinations in the southeastern United States with unsurpassed access via Delta's Atlanta hub -- the world's largest. In addition, travelers will benefit from additional links between Canada and the United States with the introduction of new routes beginning with next winter's schedule.''

Under the proposed agreement, Air Canada and Delta would codeshare on each other's transborder flights between Canadian gateway cities and Delta's U.S. hubs in Atlanta, Cincinnati, Dallas/Ft. Worth and Salt Lake City, as well as on each other's selected domestic flights. In addition, the arrangement will allow for the introduction of new services between each carrier's North American hubs with the winter schedule 2000-2001.

Delta's goal is to become the #1 airline in the eyes of its customers, flying passengers and cargo from anywhere to everywhere. Passengers already choose to fly Delta more often than any other airline in the world, and the carrier was named ``Best-Managed Major Airline'' in 1999 by Aviation Week & Space Technology magazine. Customers have access to a global network of 5,360 flights each day to 356 cities in 57 countries on Delta, Delta Express, Delta Shuttle, the Delta Connection carriers and Delta's Worldwide Partners. For more information, visit Delta at www.delta-air.com .

SOURCE: Delta Air Lines, Inc.

doc

QUESTIONS AND ANSWERS - AIR CANADA/DELTA CODESHARE

Q: How does this codeshare agreement fit with Air Canada's current relationship with United Airlines?
A. This agreement is complimentary to Air Canada's current relationship with global Star Alliance partner United Airlines.
Q: Is Canadian Airlines canceling its codesharing agreement with American Airlines?
A: Canadian has reached a termination agreement with American Airlines on its codeshare agreement that is effective on or before October 1, 2000.
Q: What was the nature of the agreement between Canadian Airlines and American Airlines?
A: Canadian Airlines and American Airlines had a reciprocal code share agreement that commenced in 1995.
Q: Is the AA code still on Canadian flights? Is the CP code on AA flights? When was it taken off?
A: The AA code was taken off Canadian Airlines' transborder flights as of April 2000. It is still on Canadian's domestic flights but will be removed on or before October 1, 2000. Canadian's code is still on AA flights and will be removed on or before October 1,2000.
Q: Is there a penalty for canceling the agreement with AA? Do they become an unsecured creditor in Canadian's ongoing CCAA process?
A: There is no penalty for canceling the agreement with American Airlines and consequently American Airlines does not have a claim under the CCAA process.
Q: Why can the Delta/Air Canada codeshare agreement not be extended to international flights?
A: The commercial agreement is only for domestic and transborder flights.
Q: Does this agreement offer customers from either carrier points earning, points redemption or lounge access?
A: The agreement is such that Aeroplan members can earn Aeroplan miles on an Air Canada coded flight operated by Delta. Delta
SkyMiles members may earn SkyMiles on a Delta coded flight that is operated by Air Canada. Lounge access is available on certain routes
Q: What is the value of the new agreement to Air Canada?
A: The financial terms of the agreement are confidential.
Q: How can the Delta deal replace the AA deal when these two carriers serve different markets from (with the exception of Dallas)
different US hubs?
A: The Air Canada/Delta agreement compliments the primary codeshare relationship with United Airlines, Air Canada's Star Alliance partner and it offers our customers an expanded network in the United States.
Q: Since Air Canada and Canadian Airlines codeshare on all domestic flights right now, does this mean that a Canadian or Air Canada
flight could have three codes - an Air Canada flight number, a Canadian flight number and a Delta flight number?
A: Air Canada flights will have potentially the AC, CP and Delta codes and Delta could have Delta and Air Canada codes. Canadian Airlines is not part of the new Air Canada/Delta agreement.
Q: Why is this agreement not effective until the winter schedule? Why not right away?
A: The agreement commences with the winter schedule to allow adequate preparation time and to ensure broad awareness to customers of both airlines.
Q: Can you give some examples of the kinds of new routes that might be introduced as a result of this new agreement?
A: Those decisions are currently under consideration. We are pleased with the opportunities this agreement opens up for our
customers for new transborder routes.
Q: In your news release of October 19, 1999 you referenced a code share agreement between Canadian Airlines and Delta? How does news
release statement sync with today's announcement? (excerpt from October 19, 1999 Air Canada news release)
"Air Canada will propose to Canadian that it code share with Delta Air Lines. Canadian would then begin serving major Delta hubs by reallocating aircraft made available by streamlining the domestic mainline and regional routes."
A: At the time of that nes release, a Canadian Airlines codeshare agreement with Delta was proposed. We have assessed the current commercial environment and have determined that a codeshare agreement between Air Canada and Delta is the most beneficial at this time.

Corporate Communications
May 19, 2000

/courtesy of Email to Flygirl from AC thread

craz

Too bad that theres no code-sharing on Intl flights.I for one would have preferred flying to Canada then on to europe etc where DL didnt fly. Ex- cant get to London from NY this way instead of going via CDG,I could fly to Can and then onto Lon.

Dauphin

I do hope LGA-YYZ will be one of the code-shares. DL has no NYC-YYZ service, which cost me Gold Medallion last year.

james

There is a DL flight direct from JFK to YYZ (that is Toronto right?). (At least Expedia came up with one for a trip I am looking in to later this year).

Russ21Atl

Yes we do! Its ASA. Here is the routing for that CRJ.
ATL-YYZ 11:10A-1:30P FLT# 4466
YYZ-JFK 2:15P-4:05P FLT# 4467
JFK-YYZ 5:25P-7:14P FLT# 4468
YYZ-ATL 7:45P-10:05P FLT# 4469

People complain when we introduce CRJ service in markets, but with this example, we are now able to provide JFK-YYZ-JFK service, whereas before, an MD80 couldn't do the turn.

elektrik

Too bad for DL. AC is a *disaster*. As an example of the mayhem that has engulfed YYZ, I've included a link from Saturday's Toronto Star. DL customers are going to be in for a nightmare.

Expanding their service is not what AC needs right now. They haven't had their act together for years. It's like UA + US.... maybe under other circumstances, it may work, but not now.

"Air Canada is the greatest! Ha, fooled you" http://www.thestar.com/thestar/back_issues/ED20000819/travel/20000819TRV02_TREND19A.ht ml


Elektrik

[This message has been edited by elektrik (edited 08-20-2000).]

blackjack-21

This may work out well, as my Amex Membership Rewards can be transferred to Delta, but not yet AC (now that CP has withdrawn from Membership Rewards at such short notice), so in the future transferring to Delta should be able to get me on AC's codeshares. Is that a plan, or what???

bj-21.

leroy11

I thought that the DL partnership was designed to give AC access to the South that UA is not strong in. Surely, the UA / US merger would give UA that anyway leaving little need for AC's involvement with DL.

Robert Leach

Russ,

I guess RJ service is better than no service at all, but don't you think that an RJ on an international flight from ATL to YYZ is a bit ridiculous??

What if some full fare South American business traveler has arrived in ATL after an overnight flight and has to get on that little RJ to YYZ?

RJ's from ATL to Chattanooga are one thing, but I just don't get flying them between major international cities like this. I think that if you're a major global airline you should be able to compete with full size equipment. Otherwise, they need to take out a couple of rows of seats in the RJ's,put in a small first class section (3 across), and serve a snack.

I feel the same way about those RJ flights from Portland to San Francisco. After a first class flight from Tokyo to Portland, I got stuck on one of those one time in a holding pattern over SFO due to fog. How awful. For goodness sake, put a 737 on this route, sell 80 seats in the back 21 days in advance for $49 to generate some revenue, and then hold the rest for premium passengers paying $4k to cross the pond. It's no wonder that PDX is facing elimination as a hub, as it has been woefully unsupported.

Russ21Atl

Robert,
Then that int'l trvlr can take the DL mainline service. Trust me, I had the same concern over a CRJ flying that long esp. between two in'l cities. My friend in flight planning said a MD80 couldn't do the YYZ-JFK-YYZ turn as quickly as they wanted, so they choose CRJ service.
DL is really business smart. This industry is changing and its not like the good ole days. Money/profits/revenue that's what they want.
Just as y'all hate our SkyTeam alliance, DL and others are strategically choosing partners based in cities/airports that have growth potential. Growth=more slots/planes=more trvlrs=more $$$$$. If you want to survive and fly for another 70 yrs, then we have to think ahead.

Again, this is my opinion, and we are entitled to our own.

mmgm

Yeah, but how do you make more money if you drive formerly loyal customers to other airlines?

Russ21Atl

Sadly enough, we may lose some loyal flyers, however Delta's load factors are showing a constant increase and are breaking all previous records.

We continue to be the only airline in the world to have flown over 100 million passengers in a calendar year and have done so for the past 3 years. (2000 figures are even greater than 1999)

Just as with the new 2001 upgrades changing, DL's decision to do that was to keep our most loyal customers happy. Our load factors in Business Elite are again so high that our PMs and paid BE pax are not gettng to travel on their preferred flights.

With that being said, it seems the opposite of what was said is being done. We are acquiring so many elite members now that something had to be done before no one would be able to upgrade.



[This message has been edited by Russ21Atl (edited 08-21-2000).]

jamiel

Don't be silly--a monopoly route daily YYZ-JFK will coin money for DL. There has been no good way to get from YYZ to JFK for a long time (VASP does not make me very comfortable) so you're stuck with lots of service to LGA, then a bus or car service.

Now if there was only a late nite YYZ-JFK flight (to match up with the flights to S. America) all would be right with the world.

Check into premium fares YYZ-South America--$1000-$2000 cheaper than USA-South America.

jl

InterestedFlyer

Sorry Russ,

But your buddy in flight control doesn't really understand why CRJ's are placed where they are.....and it isn't due to operational constraints.

Makes more sense to start with only 50 seats on an unproven route to 'test' the waters. If the market between YYZ-JKF is as strong as some suggest, then I think you'll see a mainline plane on the route sooner than later (and the turns do work). Remember that YYZ-ATL hasn't done so well, so putting an RJ on YYZ-JFK is a form of checking the demand without making that big an investment.