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Northwest Will Lose Out In South America?

Sun Jul 29, 2001 1:36 am

Do you think Northwest and maybe USAirways will lose out in the future from not serving destinations in Latin and South America??? All the big five except NWA serve large numbers of latin, carribean, and south american destinations. NWA and USAir only serve in the carribean and mexico. With the growing hispanic population in the U.S., Delta made expansion to South and Latin America it's TOP priority back in '98. What is NWA gonna do, and will they eventually lose out from not serving this market???

Your views?
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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 1:39 am

Doesn't Northwest do a lot of code sharing with Continental in Latin America?

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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 1:49 am

I can't see Northwest expanding into South America for the time being. Their hubs aren't geograpically located well to conenct passengers to South American flights, except for Memphis, but the Latin demand from there is extremely low, as is from all of their hubs. For now they rely on Continental for South America the way Continental relies on them for Asia. Another problem with NW service to SA is the fact that the air treaties with many of the larger nations won't permit much more frequencies to the US. If in a five years or so Brazil or Argentina open up to their doors more, I could POSSIBLY(but highly unlikely) a DTW-GRU or a DTW-EZE on a 757-300, but for now this doesn't look like its ever gonna happen.
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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 2:01 am

Dont look for NW or US to enter the South American market any time soon. The routes/frequencies to SouthAmerica are tightly controlled and dont forget how strong and dominant AA is is this region. UA has only been moderately successful with its Latin American services and flies a limited amount of routes, CO has worked very hard to make is Houston to Latin America services work out and is now flying some routes out of its EWR hub, and DL is making its South American services work due to the huge power of its Atlanta hub. The unsettled economic picture in South America does not help, Argentina now has severe financial problems and this downturn is not helping Chile, its a tough market!

NW will rely on CO for South American connections and US must determine its future without United, the mangement at US has more than enough issues to figure out without taking on South American routes.
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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 3:35 am

I think the current destinations US and NW have in the Caribbean and Mexico are enough. US has expanded in the Caribbean by adding Santo Domingo; Dominican Republic and in SJU they dominate the route to Philly and they are the only carriers flying to Pittsburgh and Charlotte. But I dont see US or NW expanding to countries like Chile, Argentina, Brasil, Peru, Bolivia. The only other possible countries that could be viable for US are Colombia and Venezuela (and these wont happen any time soon).
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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 4:17 am

NW had the chance to step in at Miami back in 1989 but opted not to.American came in and the rest is history.
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To Doug

Sun Jul 29, 2001 4:31 am

Doug: I didn't know that!!!!!

Do you know why NW made such a terrible mistake?

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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 5:02 am

Northwest has publicly stated that they have no interest in serving the South American and Latin American markets. They have a very conservative management who believe in growing the company only to the point where it can consolidate operations and be succesful in the markets that it chooses to serve. Their present round of consolidation involves a fleet renewal program, coupled with an Asian route restructuring. They are pursuing South American and Latin American expansion through their alliance with Continental, and European expansion through their alliance with KLM.
"The A340-300 may boast a long range, but the A340 is underpowered" -- Robert Milton, CEO - Air Canada

I Don't Envision NW Losing Out On Anything

Sun Jul 29, 2001 5:33 am

Northwest will never suffer because of the lack of Latin American, or South American routes due to the fact that Northwest already has it's cash crops set in the Asian Market. Plus I don't think the failing economies of these South and Central American countries looks too pleasant in the eyes of Northwest execs. Also the point of Northwest lacking a sensible hub for Carribean locations is valid, but not totally true. Minneapolis and Detroit may not be exactly the best spots to launch a flight to Sao Paulo from, we forget about Memphis being another Northwest fortress, and it could be the bridging gap. Plus Northwest wouldn't need to have service of it's own to Central, and South, and Latin America because Continental already has a presence in the South American field, having flights to about all major capitals on that continent. Also, Continental's alliance with Copa Airlines of Nicraragrua gives them a stong base in the Central American field. And back to Northwest, the KLM alliance again gives double coverage, because KLM has it's prescence felt in Latin America as well, especially in the Netherlands Antilles region. Anyways, no matter what happens, Northwest will always have an important place in American transportation, and will continue to thrive, even without it's Central, South, and Latin American destinations(that will be taken care of by it's alliance partners).
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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 7:34 am

Copa is from Panama not Nicaragua and I dont think people really want to go to Amsterdam and connect to somewere in the Caribbean. I also find Memphis a very akward place to launch flights to Latin America, those would be a complete failure. And yes NW is a very conservative airline for example during the summer they only have 2 weekly flights to DTW and 1 to Memphis, when a daily flight to Detroit could work fine .
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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 2:06 pm

Does NWA need to go into south america?
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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 2:37 pm

NW just doesn't have a place to start. UA and AA have Miami. Perfect for Latin ops because the O&D alone can support them (Miami-Caracas and Miami-Sao Paulo rank among America's busiest international routes). CO and DL have Houston and Atlanta, respectfully. While neither has huge O&D base, they provide ample connections and, geographiclly, are located right. The only NW hub that can POSSIBLY support the O&D - Detroit - is not situatied properly. Despite the declining Latin American market, people must not forget that AA still has little problem filling up two daily 777-200s from Miami to Buenos Aires, and obviously they have no problem filling up 767-300ERs from Miami to Santiago, because the 777-200 will be used on that route this fall (and one of LA's dailies will go o 343 in September).
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RE: Northwest Will Lose Out In South America?

Sun Jul 29, 2001 6:03 pm

CO's Central and South Am. routes from EWR have a decent load and also
a good yield. CO is next to AA in the region. DL/UA do not have that many routes, even though DL has applied for many routes with DOT.

Whatever NW wants to feed or take care of it can through alliance with CO (as others have pointed out)