Delta to start daily flights to Sydney

[bxleu]

December 19, 2008
VIRGIN BLUE's plans to launch flights to the United States next year have been dealt another blow - the world's largest carrier, Delta Airlines, is planning to start daily services between Sydney and Los Angeles in July.

V Australia has already pushed back its launch date from December to February, and Delta's entry, coupled with the global economic slowdown, could make it even tougher for the Virgin Blue long-haul airline to make a profit on the route.

Delta's entry could also spell an end to the bumper profits and domination Qantas has enjoyed over the route for the past decade.

The US airline is expected to formally announce its plan in Sydney today, but it has already started selling tickets for a daily service across the Pacific via the reservation systems used by travel agents.

A spokesman for the federal Minister for Transport, Anthony Albanese, said the Government was yet to hold talks with the airline.

But thanks to an open skies treaty signed between Australia and the US early this year, Delta will have the right to start daily services almost immediately. United Airlines is the only other mainland US carrier to fly direct services on the route, from which Qantas makes an estimated 20 per cent of its profits.

There are suspicions Delta's appearance on travel agents' screens could partly explain V Australia's sudden announcement of a heavily discounted sale on Wednesday.

V Australia is offering return tickets for about $1200, including taxes and charges. Like V Australia, Delta will be flying Boeing 777s on the route.

Delta's entry will sharply increase the number of seats on the route.

Aside from V Australia's plans to launch services from Sydney and Brisbane to Los Angeles, Qantas's deployment of its massive A380 superjumbo on the route will mean another huge step up in the number of seats.

It is believed Delta's entry could be a byproduct of its merger in October with US rival Northwest Airlines, which made it the largest airline in the world.

As both airlines eliminate overlaps in their respective networks, they now have surplus aircraft to put on new routes, such as to Sydney.

Delta could create headaches for V Australia. Aside from flooding the route with more seats, Delta could capture more traffic given its membership of the world's second largest airline alliance, SkyTeam. Unlike V Australia, it is also a well-known brand in the US.

Delta's entry could also thwart Singapore Airlines' hopes of ever gaining permission to fly the route.

Source: http://business.smh.com.au/business/del ... -71oa.html

[TexasGuy]

Delta is becoming more and more aggressive in its INTL expansion plans. This will certainly give the other airlines serving this route a moment of pause.......

[smokejumper]

Delta and other US carriers are becoming more aggressive internationally. They expect higher profits due to the lesser competition than they are experiencing in the US.

[TexasGuy]

Delta and other US carriers are becoming more aggressive internationally. They expect higher profits due to the lesser competition than they are experiencing in the US.

Agreed. The growth plans for Continental here in Houston are nothing short of explosive on the INTL routes. They plan on launching several routes that are currently being served only by foreign flag carriers. I guess Delta, Continental and others are branching out of the saturated US domestic market and are focussing on INTL growth to keep their respective companies a float for years to come.

[Conti764]

Delta and other US carriers are becoming more aggressive internationally. They expect higher profits due to the lesser competition than they are experiencing in the US.

Agreed. The growth plans for Continental here in Houston are nothing short of explosive on the INTL routes. They plan on launching several routes that are currently being served only by foreign flag carriers. I guess Delta, Continental and others are branching out of the saturated US domestic market and are focussing on INTL growth to keep their respective companies a float for years to come.

Maybe a flight to BRU once CO joins Star Alliance, is in the pipeline?

[PYX]

Delta and other US carriers are becoming more aggressive internationally. They expect higher profits due to the lesser competition than they are experiencing in the US.

They will have to drastically improve the quality of their in-flight service before they will make a dent in the international market.
Cabin crew attitudes, IFE, etc., all need major "enhancements."

[Shanti]

Why have some american cabin crewmembers such a bad attitude to
passengers?

[DALelite]

DL is using the B-777LR to SYD which features the latest on IFE. I don't think that the DL product is that bad that it needs an improvement. What they could do is getting rid off those horrid alcohol prices.

[Prevangor]

Bear in mind that a part of the international tfaffic from/to the United States is closed for free competion due to the Fly America Act. All publically paid tickets must be issued on US carriers only, if possible.

[PYX]

Bear in mind that a part of the international tfaffic from/to the United States is closed for free competion due to the Fly America Act. All publically paid tickets must be issued on US carriers only, if possible.

I travel internationally on a frequent basis and I haven't bought a ticket from, or through, a U.S. airline in many, many years, so could you be a bit more specific?

To answer Shanti question: The quality of service on various airlines is often the topic of discussion among my associates and they report that while the service on the international routes flown by the American owned airlines is generally better than that they encounter on domestic flights, it still has a long way to go before would it be on par with the major foreign carriers that fly to and from the U.S.

To DALelite.
Does this mean Delta will be flying their own metal to many of the destinations to which they, for the last several years, have been using code share arrangement with foreign carriers, such as Korean Air, Asiana, China Air, etc.?
While the Boeing 777-200LR is a great aircraft (and brand, spanking new), isn't it pretty much up to each individual airline as to what they offer their customers in terms of IFE, comfort, etc.? In otherwords, if Delta didn't want to spend the money there wouldn't be IFE or perhaps a reduced quality of IFE?

[hakan]

As an Australian consumer, I welcome any competition. United and Qantas have the duopoly on this route for too long. Adding VAustralia and Delta will be good. I know Hawaiian Airlines fly to Sydney too but for these guys it doesn't have a big impact as Qantas serves Honolulu itself with Jetstar.
I guess if Singapore Airlines gain access to this route they may have a big impact. But the governments of AUS and USA are not keen.

Another route is South Africa. SAA and Qantas have the duopoly here too. Let's hope VAustralia may bring competiton later.