muzzNYC From United States of America, joined Aug 2010, 6 posts, RR: 0 Posted (2 years 8 months 3 weeks 4 days 11 hours ago) and read 2510 times:
Delta currently has one Asian destination from its JFK hub, Tokyo. Are there any plans for them to expand into cities like Shanghai, Beijing, and Hong Kong from JFK? Continental has service to all three cities form their Newark hub. And since there are many Chinese immigrants living in New York, as well as New York being a global center of business, wouldn't it make sense for Delta to begin service there?
elmothehobo From United States of America, joined Aug 2006, 1515 posts, RR: 1 Reply 1, posted (2 years 8 months 3 weeks 4 days 10 hours ago) and read 2324 times:
The issue at JFK, and New York in general, is saturation. There are four daily flights to Hong Kong as it stands, including two nonstops from JFK on Cathay Pacific, a one stop via Vancouver on Cathay Pacific and the daily (or nearly daily) Newark - Hong Kong on Continental. There are two daily nonstop services from the New York area to Shanghai and Beijing now, one each from Newark and Kennedy.
As of now, Delta is better off routing passengers over Tokyo, Detroit or Seattle, rather than jumping into the market. In the long run, sure, with the way that China is growing. We'll see either American or Delta jumping on JFK Shanghai within the next couple years, but that may well be the limit of the foray. New services to China would also require new frequencies. With the way that Delta (and American) have struggled with the launch of new routes to China (failure to aquire desired slots, making frequencies dormant), the DoT may be hesitant to award more slots to either carrier. We're more likely to see these carriers, or better yet Continental/United, who using all of their China frequencies, apply for new routes, including San Francisco - Guangzhou or Los Angeles - Shanghai/Beijing.
MAH4546 From Sweden, joined Jan 2001, 31118 posts, RR: 73 Reply 2, posted (2 years 8 months 3 weeks 4 days 10 hours ago) and read 2244 times:
Quoting elmothehobo (Reply 1): With the way that Delta (and American) have struggled with the launch of new routes to China (failure to aquire desired slots, making frequencies dormant), the DoT may be hesitant to award more slots to either carrier.
I agree for the most part with your post - over-saturation, plus Delta has Detroit relatively nearby. But:
1) American has not made any frequencies dormant since launching services. Like Delta and Continental already have, it has simply asked for seasonal flexibility.
2) There is no competition for China slots. By next year well over 60 slots will be available to U.S. carriers. DOT will give them to whoever asks, whether AA wants LAX-PVG or DL wants JFK-PEK. And DOT has plenty to give everybody what they want.
3) United is not using all it's China slots, having seven dormant. Only AA and CO use all of them.
4) The failure of AA and DL to acquire good landing slots at Bejing Capital is no fault of their own, so not sure why its relevant to what DOT would use in the unlikely situation that China slots become competitive again.
OA412 From United States of America, joined Dec 2000, 4980 posts, RR: 25 Reply 3, posted (2 years 8 months 3 weeks 4 days 10 hours ago) and read 2188 times:
Quoting elmothehobo (Reply 1): Delta (and American) have struggled with the launch of new routes to China (failure to aquire desired slots,
Actually the inability to acquire desirable slots isn't really a failure for either airline. They both requested desirable slots, and China came back with the less desirable slots. For what it's worth, the less than desirable times don't seem to have hurt either carriers chances. Also, while DL did drop ATL-PVG, they haven't really struggled anywhere else. DTW-PVG reportedly does well. They are seasonally discontinuing 2 frequencies this winter to help them with fleet upgrades. SEA-PEK was always planned as a 5 weekly service, but since the slots being used for that service (NW's former CAN slots) are good for a daily service, they have to apply for the right to fly the route at less than daily service. IMHO, SEA-PEK is likely to be upgraded to daily service in the not too distant future.