Delta Air Lines Seeks Approval for New London-Hub Operations

Strategic Insights -

Delta Air Lines, a leading US-based airline, has filed applications with the European Commission and the US Department of Transportation to operate new routes between London's Heathrow Airport and Boston and Miami. The proposed service would provide consumers with increased competition among airlines and airline alliances, benefiting both business and leisure travelers.

Key Takeaways:

  • Delta's new service would offer twice-daily year-round flights between London and Boston and daily year-round flights between London and Miami, starting from March 27, 2011.
  • The service would be operated in cooperation with Delta's trans-Atlantic joint venture partners Air France-KLM and Alitalia.
  • The proposed operations would increase competition among the major airline alliances across the Atlantic, with a total of 47% of Heathrow's takeoff and landing slots held by the oneworld alliance and 25% by the Star Alliance.
  • SkyTeam, which includes Delta, Air France-KLM, and Alitalia, holds only 5% of Heathrow's slots.
  • The proposed operations are contingent on the approval of an immunized trans-Atlantic alliance between American Airlines and British Airways, which is expected to enhance competition in the most tightly restricted markets.
  • The journal notes that the slots for the new service are available following the U.S. and E.U. governments' approval of the alliance between American Airlines and British Airways.
  • The approval of the proposed service would mark an expansion of Delta's presence in the UK market and a significant enhancement of competition among the major airlines operating between the US and Europe.

Statistics:

  • 47% of Heathrow's takeoff and landing slots are held by the oneworld alliance, which includes American Airlines and British Airways.
  • 25% of Heathrow's slots are held by the Star Alliance, which includes United Airlines, US Airways, BMI, and Lufthans.
  • 5% of Heathrow's slots are held by the SkyTeam alliance, which includes Delta, Air France-KLM, and Alitalia.
  • 1,440 (twice-daily flights) + 365 (daily flights) = 1,805 weekly flights (estimated) that would result from the proposed service.

Sources:

  • Delta Air Lines (NYSE:DAL) - press release
  • Journal of Transportation editors - staff reports
  • European Commission - regulations
  • U.S. Department of Transportation - regulations