United Sells London Route/Slot to Delta

[Hutchman]

AP
Delta Acquiring New York-London Route
Friday July 28, 10:20 am ET
By Harry R. Weber, AP Business Writer Delta Acquiring New York-London Route From United in Deal Worth Up to $21 Million
ATLANTA (AP) -- Delta Air Lines Inc., the nation's third-largest carrier, said Friday it has reached a deal worth up to $21 million with UAL Corp.'s United Airlines to acquire the authority to provide nonstop service from New York's John F. Kennedy International Airport to London.

 

[Plug]

Heathrow or gatwick?

 

[FDJ2]

Heathrow or gatwick?

Gatwick.

NEW YORK, July 28, 2006 (PRIMEZONE) -- Delta Air Lines -- the world's largest airline between the United States and Europe -- has reached a definitive agreement with United Airlines to acquire the route authority to serve London nonstop from its fast-growing hub at New York's John F. Kennedy International Airport. The agreement, which is subject to U.S. Department of Transportation (DOT) approval and certain other closing conditions, will allow Delta for the first time to operate daily round-trip flights between New York-JFK and London's Gatwick Airport. The first daily round-trip flight would begin later this year with a second flight beginning in spring 2007.

 

[XJTAv8r]

Heathrow or gatwick?

Gatwick. Delta doesn't have the route authority to go to LHR. AA and UA are the only US carriers that do.

 

[Plug]

Thanks potatoe man, how's fatherhood?

 

[PlaneDrvr]

Selling JFK-Gatwick Route, Giving up Heathrow Route

http://biz.yahoo.com/bizj/060728/1323286.html?.v=1

"As United shifts more resources to Asia-Pacific routes it is shifting away from European service to some degree. UAL also said Friday it sell its New York-London route authority to Delta Air Lines subject to U.S. Department of Transportation approval and certain other closing conditions. Delta will use this route authority to fly between JFK and London's Gatwick Airport. This route authority sale will result in United discontinuing its JFK-London Heathrow service at the end of October."

Very surprising that the are willing to give up the 'Heathrow service' as that will give AA a lock on the JFK-Heathrow, being the only other U.S. airline serving the route??

 

[737 Pylt]

http://biz.yahoo.com/bizj/060728/1323286.html?.v=1

"As United shifts more resources to Asia-Pacific routes it is shifting away from European service to some degree. UAL also said Friday it sell its New York-London route authority to Delta Air Lines subject to U.S. Department of Transportation approval and certain other closing conditions. Delta will use this route authority to fly between JFK and London's Gatwick Airport. This route authority sale will result in United discontinuing its JFK-London Heathrow service at the end of October."

Very surprising that the are willing to give up the 'Heathrow service' as that will give AA a lock on the JFK-Heathrow, being the only other U.S. airline serving the route??

Not really! UAL is a powerhouse in the pacific. They have the equip (744's) and can dominate the pacific where the real $$ revenue can be made. They know that DL has a stronghold on europe. It actually makes good sense for UAL. Their presence is so small in NY while DL's is big. What DL needs to do now is update terminals 2 & 3. I can't tell you how many times we've been delayed in pushbacks because of congestion.
737

 

[Hutchman]

Why does Delta have a managment team? A monkey can add flights to everywhere CAL goes and it only costs a few bannans.

 

[737 Pylt]

Why does Delta have a managment team? A monkey can add flights to everywhere CAL goes and it only costs a few bannans.

But then who would we have to give all those bonuses to for losing $millions over the past 6 years!?
737

 

[JD2003]

Why does Delta have a managment team? A monkey can add flights to everywhere CAL goes and it only costs a few bannans.

Has Delta considered outsourcing its management team to Mexico. I hear Mexicans manage stuff for cheap.

Don't have to payem a bonus or stock options either.

 

[BLUE BAYOU]

You've got to put the money gained from the employee givebacks somewhere...

 

[HomerJ]

Our bankruptcy laws in the U.S. are unreal. A company that hasn't made a penny in how many years can somehow find 21 million to expand? Wow.

 

[Hutchman]

But then who would we have to give all those bonuses to for losing $millions over the past 6 years!?
737

You do have a point there.

 

[wmudriver]

UAL is a powerhouse in the pacific. They have the equip (744's) and can dominate the pacific where the real $$ revenue can be made. They know that DL has a stronghold on europe.

Sounds like we're playing Risk!

The Ukraine is weak!

 

[wmudriver]

NWA hits Europe pretty good, especially at AMS. Seems like they have been shifting focus to the Pacific routes by pulling a couple of 47's out of the desert to supplement the dying DC10s and the growing 330's. With the Asian(Chinese) economy booming along at 14%, who can blame an airline for wanting those routes.

Are all of NWA's 757's getting the winglet mods?

 

[G4G5]

http://biz.yahoo.com/bizj/060728/1323286.html?.v=1

I found this part to be extremely interesting:
"This route authority sale will result in United discontinuing its JFK-London Heathrow service at the end of October"

"The service changes include United's first-ever flights from Washington Dulles to Tokyo Narita -- replacing flights to Tokyo from New York Kennedy"

UAL is basically giving up on the NY market. Now it's not a secret that UAL mgt has been looking for a merger partner. Can someone name a carrier with strong NY presence, an established EWR-Narita route, and an established EWR-Gatwick route?

It sure looks like UAL is trying to shift overlapping route authorities to make a CAL-UAL merger a little more palatable to the DOT.

The JFK-LHR route can be shifted to another city, LAX, ORD, IAD, wherever. Then at some point in the future it can be shifted back. This is a wise move because UAL can now tell the DOT that, "we are not serving the NY-London/Tokyo market.

UAL also announced today that it will be closing the NYC 777 base. This should eliminate the need for a NYC 777 fence for the UAL and CAL pilots. They just eliminated all of the "heavy" flying overlap between the two seniority lists.

Just my 2c.

 

[Uniform Shop]

Never speak of this again. Nothing against UAL but I would much rather have CAL stand alone for obvious (avatar) reasons. :beer: