AA and flights to LHR

[StraaightTaalk]

I'm sure WT will be popping up shortly to defend that brilliant move by Duhlta...

WT is busy over on airliners.net trying to convince the 14 year olds that frequent that board how Delta is going to conquer the world.

I suppose they're an easier audience. 😛

 

[chucky]

In hindsight, UA's sale of NYC-LON to DL looks brilliant; $13 million cash upfront for route authority that anyone can fly next year. Dunno if UA has to rebate any of that money - somewhere I have a copy of the agreement, but can't find it right now. Here's an article about the purchase:

http://news.airwise.com/story/view/1154386945.html

Of course, UA won't be getting the additional $2 million/year from DL.

At the time, many speculated that once UA bought CO, it would once again own NYC-LON authority (currently operated by CO) and could once again fly JFK-LHR (with the slots DL could not buy). 😀

Hindsight is 20/20. Who would have thought open skies would EVER be agreed upon this quickly. Overall, I think Delta made the right move. JMO

 

[eolesen]

I didn't think it would be wrapped up this quickly, but most analysts I've spoken with felt there was better than a 70/30 chance of it happening.

 

[donttouchthebeauty]

Hindsight is 20/20. Who would have thought open skies would EVER be agreed upon this quickly. Overall, I think Delta made the right move. JMO

not so sure - i thought delta could operate the slots to gatwick only and could NOT be transferred to heathrow.

 

[eolesen]

That's correct. Frequencies and slots are two totally different things. DL bought the right to operate between NYC and LGW using UA's frequencies. UA kept their slots, although I haven't looked to see what the disposition was, i.e. they either increased service to existing BDA2 gateway cities, subleased them to LH or another Star Alliance partner, or sold them on the free market.

Anything DL does with regard to entering LHR will be new money, i.e. slots and facilities. Both are scarce, and the price just went up significantly for morning arrivals and mid-day departures...

 

[whlinder]

I think UA leased out their LHR slots (not sure to who) that came back from JFK. I'm not aware of any increased LHR frequencies from IAD/ORD/SFO/LAX.

I wonder if VS is going to be forced to join an alliance soon. Star and SkyTeam could both work.

 

[whlinder]

Found the old thread on the UA board; supposedly UA's slot got leased to AC.

http://www.usaviation.com/forums/index.php...30015&st=30

 

[FrugalFlyerv2.0]

I could see AA pulling one ORD & one of either BOS or LAX to fund both DFW & RDU. Remember, RDU is for a single corp client. I see them being asked to move the operation to LHR.

Instead of reducing frequencies, what are the chances that with open skies, AA uses some of the $5+ billion cash to purchase additional slots to fly DFW&RDU to LHR? I know the slots aren't being sold like goldfish at a carnival, but AA does have the money should they become available.

 

[eolesen]

There's rumor of slot pairs going for $40M and up, so I don't know that I'd do it. In fact, I'd advocate the reverse -- sell a pair or two and raise some of that money while the price is right. Between what AA and BA already hold, they've already got enough to compete.

 

[upsilon]

Factoid: DL's purchase will have cost them $28,000 per day for the 465 days of use they'll have obtained from the route purchase.

The London Sunday Times reports that DL has obtained LHR slots, although DL says negotiations are "not yet final".

 

[eolesen]

Yep -- they've obtained them from AF. Chunnel trains are able to run at high-speed on the UK tracks (they've been speed restricted all these many years...), so AF is no doubt feeling some pain with their LHR-CDG service.