Delta and Japan Airlines Tieup?

According to the infamous “unnamed source”, Delta and Japan Airlines are set to enter a codeshare agreement that would give Delta expanded access to Asia through Japan Airlines’ network.  Delta is a major player in the US-Japan market with its purchase of Northwest, however this agreement will allow a broader range of flights throughout Asia.

Although this agreement could mean more ticket sales for each airlines, it remains to be seen how much of an overall effect this would have on either carrier’s bottom line.  Business travelers to China can already fly direct on many major US airlines, the same can be said for Japan, Malaysia, Australia, India, and most other major Asian economies. 

Both airlines are in a restructuring process, with Japan Airlines losing over $1 billion USD, and Delta attempting to merge operations into the largest airline in the world.  This move could allow reduced costs for both carriers by limiting the amount of flying Northwest (Delta) needs to do in Asia, and increasing both US to Japan and Japan to the Asian interior for Japan Airlines.

Full article: http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20090911&id=10383866

Hawaiian Grows on Aloha's Misfortune

The collapse of Aloha Airlines last week has left the door open for remaining Hawaiian carriers to expand operations.  Hawaiian Airlines has announce that it will bring additional aircraft online and step up inter-island and mainland flying to help displaced passengers.  go! airlines also announced increased capacity by adding two more aircraft to its fleet.Hawaiian Ticket Counter

 Hawaiian Airlines has also stepped in an offered free mainland flights to travelers stranded by Aloha’s shutdown.  According to the airline there are still over 100 displaced passengers waiting to get to Los Angeles.  To increase inter-island capacity, Hawaiian has brought an additional Boeing 767 aircraft online to help with the spike in demand.

go! airlines, which has been credited for Aloha’s collapse, has also announced that its fleet is growing.  It will double its fleet to four aircraft and increase from 54 to 94 flights per day.  In addition, Mesa Airlines has announced that it will replace go!’s current fleet of 50-seat CRJ-200 aircraft with larger 90-seat CRJ-900 aircraft.  go! is heavily subsidized by Mesa’s other operations which have taken a hit recently with the loss of a large portion of Delta Connection flying.

Although this may be a boom time for current Hawaiian operations, time will tell if they are careful enough not to create too much more capacity.  Flights were not that full before the Aloha bankruptcy, so this may just be a small spike.

Hawaiian Grows on Aloha's Misfortune

Hawaiian Ticket CounterThe collapse of Aloha Airlines last week has left the door open for remaining Hawaiian carriers to expand operations.  Hawaiian Airlines has announce that it will bring additional aircraft online and step up inter-island and mainland flying to help displaced passengers.  go! airlines also announced increased capacity by adding two more aircraft to its fleet.

 Hawaiian Airlines has also stepped in an offered free mainland flights to travelers stranded by Aloha’s shutdown.  According to the airline there are still over 100 displaced passengers waiting to get to Los Angeles.  To increase inter-island capacity, Hawaiian has brought an additional Boeing 767 aircraft online to help with the spike in demand.

go! airlines, which has been credited for Aloha’s collapse, has also announced that its fleet is growing.  It will double its fleet to four aircraft and increase from 54 to 94 flights per day.  In addition, Mesa Airlines has announced that it will replace go!’s current fleet of 50-seat CRJ-200 aircraft with larger 90-seat CRJ-900 aircraft.  go! is heavily subsidized by Mesa’s other operations which have taken a hit recently with the loss of a large portion of Delta Connection flying.

Although this may be a boom time for current Hawaiian operations, time will tell if they are careful enough not to create too much more capacity.  Flights were not that full before the Aloha bankruptcy, so this may just be a small spike.

Northwest and Delta Resume Merger Talks

Delta 737According to USA Today, Northwest Airlines and Delta  Airlines have resumed merger talks even though pilot labor groups have not agreed to a merger plan.  According to executives, the recent run on oil prices has spurred new interest since both companies have been hit hard by rising operational costs.

The main issue between pilots has been seniority integration between the two groups.  Northwest pilots have agreed to go to arbitration to decide the issue, however Delta pilots have refused third party involvement.

This development could have a ripple effect on the industry as companies push mergers through despite labor concerns.