Why are they picking on Delta?
Dec 10, 1999 | 2:41 pm
#1
Original Poster
Join Date: Aug 1999
Location: See pitflyer
Posts: 1,620
Why are they picking on Delta?
I found it interesting that both Northwest and USAirways have decided to offer cheap fares from Atlanta and Cincinnati, both Delta hubs. And I just read that Northwest offers cheap fares from Salt Lake City, which I believe is another Delta hub.
What's the deal? Why is Delta in the cross hairs? Just curious.
Actually I just noticed that Delta offers cheap fares from Detroit, Memphis and Minneapolis, Northwest hubs. So who started this fare war?
[This message has been edited by dg1 (edited 12-10-1999).]
What's the deal? Why is Delta in the cross hairs? Just curious.
Actually I just noticed that Delta offers cheap fares from Detroit, Memphis and Minneapolis, Northwest hubs. So who started this fare war?
[This message has been edited by dg1 (edited 12-10-1999).]
Dec 10, 1999 | 2:48 pm
#2
Original Member
Join Date: May 1998
Location: New York City
Posts: 3,526
I think it has to with DL's position in Priceline. Since DL's part ownership gives them some measiure of control, they've limited the amounts of places that other airlines can offer fares on Priceline to from some of their hubs. I think they can offer fares to their hubs, but not beyond there - i.e. NW can offer fares to Memphis, DTW and MSP, but not beyond. I may be wrong, but this is my understanding of the situation.
------------------
Cheers.
Leo.
------------------
Cheers.
Leo.
Dec 10, 1999 | 10:14 pm
#3
Original Member and FlyerTalk Evangelist
Join Date: May 1998
Location: Kansas City, MO, USA
Programs: DL PM/MM, AA ExPlat, Hyatt Glob, HH Dia, National ECE, Hertz PC
Posts: 16,619
DL recently gave up much of its control over Priceline in exchange for more stock. From the press release announcing that move it seemed that all the airlines received Priceline stock when they joined, though not as much as DL necessarily.
Dec 11, 1999 | 6:07 am
#5
In memoriam
Join Date: Sep 1999
Location: Dallas, TX
Posts: 1,697
Notwithstanding what Beckles has posted, Leo, you hit the nail on the head regarding the NW/DL feud, which US seems to have recently joined.
When Delta recently sold a large chunk of Priceline stock, they may have given up some of their voting control, but I don't believe that alters the agreements they have with Priceline, which are the basis of the current feud and fare war.
Warren Jensen, the recently departed DL CFO, made public comments vis a vis the perks DL got as being the first airline to sign up with Priceline. He made no excuses whatsoever for their preferential treatment.
When Delta recently sold a large chunk of Priceline stock, they may have given up some of their voting control, but I don't believe that alters the agreements they have with Priceline, which are the basis of the current feud and fare war.
Warren Jensen, the recently departed DL CFO, made public comments vis a vis the perks DL got as being the first airline to sign up with Priceline. He made no excuses whatsoever for their preferential treatment.