Open Skies with EU, including LHR

[eolesen]

Open Skies with the UK is just year away, so DL (and other carriers) will finally gain access to LHR. Good news for DL employees, however....

Rather than rehash the previous thread that beat this to death last summer, DL's acquisition of UA's rights just became of somewhat dubious value.

One poster estimated that the cost over a four year period was going to be about $28/pax.

Based on the November 16, 2006 startup, and a March 1, 2008 implementation for Open Skies, DL will have held the rights for a whopping 15.5 months, and paid approximately $28,000 per day just for the rights to serve London 465 days earlier than they could have under the new deal.

It also means that UAL can resume service if they so choose to, pretty much wiping out whatever value with the purchase eliminating them as a potential competitor in the market...

 

[FA Mikey]

Plus an additional cost to aquire the landing and takeoff slots at LHR.

 

[Borescope]

Plus an additional cost to aquire the landing and takeoff slots at LHR.

The key word here is "aquire". DL will have to get the slots and facilities to operate there. With the slots being scarce, they might find a good one at the 2 am to 4 am slot.

 

[jimntx]

At this point the Open Skies Declaration is more symbolic than anything else. LHR is so very slot restricted that no one is going to add a whole bunch of new service there anytime soon.

Having the "right" to fly there, and having a landing slot are two entirely different things.

 

[FWAAA]

At this point the Open Skies Declaration is more symbolic than anything else. LHR is so very slot restricted that no one is going to add a whole bunch of new service there anytime soon.

Having the "right" to fly there, and having a landing slot are two entirely different things.

You're probably right, but I've got this suspicion that a whole bunch of airlines (like, for starters, DL, NW, CO, US and a dozen or so European airlines) are gonna be bidding for LHR slots just because they've heard they "have to fly to/from the USA via LHR."

Just watch those smaller African/Asian airlines sell their slots to those willing to trade a new 777 for a pair. B)

With Delta's luck, of course, soon after it spends tens of millions for some slots, government (UK or EU) will force the dominant holders to divest some slots to the have-nots. Or LHR will finally build some additional new runways and terminate the slot restrictions. 😀

 

[jimntx]

When things look blackest, you're always there with the voice of doom, aren't you? Now that you have everyone sufficiently cheered down, was there anything else you wish to say at this time? :unsure:

 

[deltaflyboy]

Open Skies has already been delayed and the earliest it can start is 30Mar2008

http://www.euractiv.com/en/transport/uk-wi.../article-162699

 

[eolesen]

Open Skies has already been delayed and the earliest it can start is 30Mar2008

Well, that means it was only about 26,200 per day, and that's before paying for crews, fuel, aircraft ownership, etc...

 

[lpbrian]

The key word here is "aquire". DL will have to get the slots and facilities to operate there. With the slots being scarce, they might find a good one at the 2 am to 4 am slot.

I don't think gates will be a problem once T5 opens.

 

[upsilon]

Gates are not the same as Slots. 2 AM and 4AM slots would be useless since the passenger terminals are essentially closed from after the last scheduled arrival/departures at 10:30-11:00 PM until preparation for the first scheduled flights at 6:00 AM. And the new T5 will have no effect on slots. They will be tight until there is a new runway; and this is little more than a gleam in the BAA eye. DL, CO, NW and US will pay dearly for the slots of current holders or to “leaseâ€￾ them from their alliance partners.

 

[JFK777]

Delta will try to move the two JFK to LGW flights first. Atlanta will be next. Slots will have to be acquired from Air France or KLM most likely. Three of the four new USA airlines to LHR, DL, CAL and NW are SKYTEAM so AF/KLM will be in a great position to trade some LHR slots.

 

[grkitalny]

Gates are not the same as Slots. 2 AM and 4AM slots would be useless since the passenger terminals are essentially closed from after the last scheduled arrival/departures at 10:30-11:00 PM until preparation for the first scheduled flights at 6:00 AM. And the new T5 will have no effect on slots. They will be tight until there is a new runway; and this is little more than a gleam in the BAA eye. DL, CO, NW and US will pay dearly for the slots of current holders or to “leaseâ€￾ them from their alliance partners.

This is already taken care of...