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Delta plans to triple gates at SEA, article

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General Lee

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Delta Seeks to Boost Asia Hub With Plan to Triple Seattle Gates


By Michael Sasso Nov 14, 2014 7:19 PM ET. Bloomberg


Delta Air Lines Inc. (DAL) wants to almost triple its gates at the Seattle airport, challenging market leader Alaska Air Group Inc. (ALK), as the carrier expands its newest West Coast hub and jumping-off point to Asia.

"We're making good progress on our discussion to upgrade the facility and to turn Seattle into a huge international gateway for Delta," Chief Executive Officer Richard Anderson said on a recorded message to employees.

Delta, the world's third-largest airline, is seeking 30 gates at Seattle-Tacoma International Airport in the long term, Anderson said on the Nov. 13 call. The airline currently has 11 gates, according to the airport, the largest base for Seattle-based Alaska.

Delta has been pushing into Alaska's home turf for more than a year as the two fight for market share at an airport where the smaller airline now controls about 40 percent of the traffic. Atlanta-based Delta has designated Seattle as a hub from which to offer an increasing number of trans-Pacific flights.

Anderson's message suggests Delta is pushing beyond a previously stated goal. In September, Seattle airport spokesman Perry Cooper said Delta wanted about 150 flights a day at the airport by 2017. That would require 19 or 20 gates, assuming eight flights a day from each one, Cooper said.

Delta Capacity

Delta could potentially operate 240 flights a day with 30 Seattle gates, Cooper said. Sea-Tac, as the airport is commonly known, determines how many gates to grant airlines each year according to formula using their number of outbound seats as of August, Cooper said.

"That's one of the estimated opportunities there," Cooper said by telephone. "But does that mean that somebody would use that many?"

Delta didn't return a call yesterday seeking comment about Anderson's remarks on the employee call.

At 30 gates, Delta's Seattle operation would still be smaller than United Airlines' hub in San Francisco, which often is seen as the dominant hub to Asia because of that market's large Asian population. United operates from 32 domestic gates at San Francisco International Airport and shares 12 international gates with partner airlines in the Star Alliance, said Megan McCarthy, a United spokeswoman.

Delta's biggest West Coast base is now Los Angeles, where the airline handled about 6.89 million passengers in the year ended in July, according to the U.S. Bureau of Transportation Statistics. The airline's Seattle total was 3.37 million people.

Delta has been boosting domestic flights to and from Seattle to build connecting traffic, which then could fly to Asia. President Ed Bastian told analysts in a third-quarter earnings call last month that Delta?s decision to cut seats from Cincinnati and Memphis, Tennessee, while expanding in Seattle is producing solid results.

"Seattle's domestic performance has significantly exceeded our expectations as unit revenues increased 6 percent on a 25 percent increase in capacity," Bastian said.



Bye Bye---General Lee
 
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The phrase "wish in one hand and spit in another" comes to mind. What's the history with Delta and SEA? I assume it was a small operation until the bought NWA. How big was NWA's operation in SEA and did Delta maintain it, or downsize it and now they are trying to get back what they gave up?
 
The phrase "wish in one hand and spit in another" comes to mind. What's the history with Delta and SEA? I assume it was a small operation until the bought NWA. How big was NWA's operation in SEA and did Delta maintain it, or downsize it and now they are trying to get back what they gave up?

The deal is DL is swapping the Narita hub for SEA. Planes now can overfly Japan and make it nonstop to Asia from SEA. NWA's operation in NRT was huge at one point, with 747-200s everywhere. But the Japanese Govt has allowed JAL and ANA to operate more INTL flights from the once domestic only downtown airport, Haneda. Slots have been awarded to some US airlines at Haneda, but at very unpopular times, like arrivals and departures from 11pm to 6am. NWA actually helped build JAL at the request of the Japanese Govt after WWII, but was asked to move to Narita from Haneda in 1976. The new entrants into Narita these days are LCCs, and that has decreased the value of the current Narita slots.

Sooooo, DL can do the same thing in SEA as Narita, and they need the feed, hence the need for more gates. With $4 billion in profits this year and more next year due to low oil costs, I think the build up of SEA won't be a problem.




Bye Bye---General Lee
 
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Where are these gates comming from .. Are more going to be built? Cause I think SEA is kinda at saturation..

I think this could be a lot more interesting than the Love Field/Hobby expansion that SWA did. SEA is the mothership for ALK. But they can't offer what DAL is offering in terms of gateway to the orient. The problem for ALK I think is DAL is offering something that the city/airport wants. Should be interesting to see how it plays out.
 
All DAL has to do is buy Alaska and "poof", feed and gate space problem solved..
 
Where are these gates comming from .. Are more going to be built? Cause I think SEA is kinda at saturation..

Looking at the terminal map, it looks like A1 through A14, the whole South Satelite S1-S16, and B3, B5, B7, and B9? That might be a start.


If you have 10 Widebody nonstops per day with about 2500 seats total (250 per plane), then you need a lot of feed to fill those seats, along with local traffic. Throw in double HNL and now Maui, plus ANC service, and that means lots of connections.




Bye Bye---General Lee
 
All DAL has to do is buy Alaska and "poof", feed and gate space problem solved..

I doubt it. Once you cover the same routes, it's tougher to merge, primarily because the Govt wants competition on city pairs. I'm sure SWA or Spirit would want that, so they could benefit on scraps that would have to be given up to get regulatilory approval. But, AA or UA might be interested, or even the Corndogs, and since there is less overlap, it probably has a better chance.


Bye Bye---General Lee
 
Looking at the terminal map, it looks like A1 through A14, the whole South Satelite S1-S16, and B3, B5, B7, and B9? That might be a start.


If you have 10 Widebody nonstops per day with about 2500 seats total (250 per plane), then you need a lot of feed to fill those seats, along with local traffic. Throw in double HNL and now Maui, plus ANC service, and that means lots of connections.




Bye Bye---General Lee

So... where are all the current airlines that use those gates gonnna go ?
 
So... where are all the current airlines that use those gates gonnna go ?

Good question, but some very smart people in ATL are working on that. I would think some of the INTL flights from other airlines (like Emirates, Korean, Ice Air) would still use the S gates for the customs there. But, it seems the SEA airport authority is not fighting this DL growth plan.



Bye Bye---General Lee
 
No new gates in SEA until '20. New AS #s as of last Thursday growing SEA by 20% in 2015. I hope this thing keeps going this is great news..lots of growth. If you can believe our management they say Delta's push in SEA is the best thing that could have happened. It has flushed out Super low cost airlines and according to them Delta adds capacity at reasonable fares which allows us to grow and thrive. Last numbers they were pushing was an almost 15% cost savings over Delta... Even more if all the metal is RJ's which is about 90% of it so far.
AS Q3 profit margin 21.8%
Delta Q3 profit margin 14.6%
 
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Looks like 20 gates for delta by 2017 which is a 90% increase over the current 11 gates. That's pretty significant growth in 2 1/2 years.
 
Delta pays its employees too much and has profit sharing. They will collapse under the huge cost disadvantage. SEA gates will be available for dirt cheap in no time.
 
Not exactly rolling out the red carpet either. So far this has worked out much better for Alaska.

Uhhhhhh riiiight. The 4 DL 757s or 767s parked out in B, the 757s and 320s parked at the A gates, and all of the A330s parked at the South Satellite seem to tell a different story.... More is on the way too. Looks like a 737 pilot base will be opening on the first bid in 2015.(in addition to the current 7ER and 330 categories) Some thought it would be a 717 base, but demand has been better and a larger plane type is needed.



Bye Bye---General Lee
 
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The only effect DAL has had on Alaska is to increase Alaskas already industry leading profitability. Nearly 22% ROI in the airline business in unheard of.
 
The only effect DAL has had on Alaska is to increase Alaskas already industry leading profitability. Nearly 22% ROI in the airline business in unheard of.

Spirit has huge roi as well due to similar lack of much competition. Wait until it picks up, however as delta plans on tripling capacity to Juno.
 
Wait wait wait... That's what we all heard last year too. It's been a year now and well seems like both carriers will be fine. Remember the Delta huge PDX expansion. They were going to go everywhere out of PDX... Remember Western? Yes Delta has a track record on the west coast... I would call it total domination and no one stands a chance against them! At the first sign of a slowing economy Delta will do what it has always done..run east and hide. Triple down in PAJN.. Wow that is smart. Just found out for the last 80 years AS has never had to compete. Well cats out of the bag now.. There goes all that EAS GRAVY. I guess this Delta push is the first time.
 
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To all the Delta pilots out there.. Thank you. And I mean that. You guys turned this industry back around. Now everyone is doing well. Consolidation has been great and our careers look brighter. AS could have never spearheaded that drive. It took a large carrier and you guys did it. For the next 30 years most likely my pay will be thanks to AMR, DAL, And UAUA. But why can't we all be happy for one another. HAL, JTBLU, SWA, are all doing great. I am happy for everyone out there. Here is to wishing us all the best!
 
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Is that why you're getting Surface's?

Laughable reason but entirely true. Story from line check meeting... Apple P.Od our CEO when they were charging full freight for some licensing on the Delta app in the App store. We were giving them huge discounts to try to steer cupertino away from United (sorry UAL folks), and they didnt recognize the deals we were giving them on travel. Meanwhile, like GL said earlier, the decision about Haneda came up and they shifted focus to Seattle overflights instead of a Narita hub. Microsoft is in Seattle and has a massive worldwide travel budget. (Rumor has it, thats the reason why we got back AMS-BOM on Microsoft's requests.)

Apple paid a mea culpa in a commercial when they launched the Iphone 5 and the phone was seen scrolling through apps and the first one rhey swiped was the Delta app. Apparently, we made a deal to buy the surface to help microsoft even though the decisions and testing was made to go with the IPAD. We purchased 12k+ of the OLD surface 2 and bought the stews all their mobile units on a steep discount.

This tablet rollout is about a year late and is a collossal train wreck, but mgmt keeps spinning it like they are right on sked.....

Oh well, I get paid twice a month whether or not I look at paper or a screen....it doesnt matter to me.
 
To all the Delta pilots out there.. Thank you. And I mean that. You guys turned this industry back around. Now everyone is doing well. Consolidation has been great and our careers look brighter. AS could have never spearheaded that drive. It took a large carrier and you guys did it. For the next 30 years most likely my pay will be thanks to AMR, DAL, And UAUA. But why can't we all be happy for one another. HAL, JTBLU, SWA, are all doing great. I am happy for everyone out there. Here is to wishing us all the best!

This is a mirage!

There is no place for niceties on FI Mea....but thanks, I think capacity control by everybody except Spirit will keep this industry going.
 
Looks like 20 gates for delta by 2017 which is a 90% increase over the current 11 gates. That's pretty significant growth in 2 1/2 years.

Im not super familar with the seattle ops, but will these gates be new build on the island or a capture of gates in the main terminal? I dont really remember a lot of space there. As a Europe guy, I dont get out there....

This announcement sorta puzzled me.
 
Im not super familar with the seattle ops, but will these gates be new build on the island or a capture of gates in the main terminal? I dont really remember a lot of space there. As a Europe guy, I dont get out there....

This announcement sorta puzzled me.

It's grown significantly already. Way back when DL used B gates, then moved to the new A gates, and then was bumped to the South Island after the merger. Since then, DL has flights out of all 3 again. The S gates (island) still has a customs and some foreign airlines still use it (EK, KE, BA, etc), so the airport will have to expand customs somewhere else if DL wants the island for itself.



Bye Bye---General Lee
 

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