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American And Delta Battle Over Beijing

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(@lucky)
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In mid-March, Delta announced that they planned to operate daily nonstop flights between Los Angeles and Beijing as of December 16, 2016. Exactly two weeks later, American announced that they planned to operate daily nonstop flights between Los Angeles and Beijing as of December 16, 2016. I'm sure I'm not the only one who thought…

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11 Replies
(@Neil S.)
Joined: 13 years ago

Posts: 570

Is there an argument to be made about alliances? Since most of the Chinese carriers are in SkyTeam and technically none are in Oneworld - CX isn't mainland - could that toss a bit more favor to AA?

I'm with you that it'll be very interesting to see the DOT's logic here.


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Diamond
(@ben-l)
Joined: 5 years ago

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Posts: 360

Give it to Baltia IMO


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 Mo
(@Mo)
Joined: 11 years ago

Posts: 89

It would be funny if Emirates announce a new fifth freedom route: LAX-PEK-DXB.


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 anon
(@anon)
Joined: 15 years ago

Posts: 520

AA should just operate it from PHX ... or CLT .... or PHL. LAX is oversaturated with TPACs as it is


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Gold
(@mark-f)
Joined: 5 years ago

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This is classic oligopolist behavior. Of course Delta is trying to show public benefit, that is what the decision will 'supposedly' be based upon. If Delta really wanted to show why it would benefit the public to have them fly the route, perhaps they could simply show that viral video of that woman having a meltdown at the JFK AA gate after the 12th hour of a flight delay because the incoming plane had been diverted 100 miles away.


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 Paul
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(@paul-4)
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I would go with American because of their better miles earning for the first half of this year anyways.
Afterwards, give it to UA?


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Diamond
(@mojoe)
Joined: 5 years ago

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Posts: 308

I agree it appears AA was filing a "me, too" application. That said, I hope American gets the route/slot because I have earned/used lots of AAdvantage miles before, and I'm not inclined to fly Delta.


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 Sice
Diamond
(@sice)
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Posts: 457

If I were Delta I'd be glad I did my homework on the route and can easily show it, otherwise I'd be pissed that AA jumps in last minute and demands it all. Delta may have reluctantly given up the Tokyo route due to AA whining (how is AA doing on that route, btw?), maybe that will help Delta in this case. I'd be amused if AA really had wanted the China route and then shot themselves in the foot with the Haneda route 🙂


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Diamond
(@tim-dunn)
Joined: 5 years ago

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Posts: 7468

The best and most compelling evidence about who can best use 7 frequencies to Peking comes directly from DOT data which, the DOT will most certainly review during the route evaluation process.

American and Delta both currently operate two flights per day between the US and Peking. DL carries more passengers at higher fare values and also connects passengers beyond Peking to its partners, something that AA doesn't do.

Arguments about why the route is needed for strategic needs by either airline are immaterial.

It is also worth noting that AA and DL both ended up with poor slot times when they started their ORD and DTW to Peking flights. Delta's Detroit - Peking flight leaves midday which improves connectivity at Peking while AA's schedule, while improved, is still less than ideal. AA also directly competes against United in Chicago while DL has no direct competitor.

The DOT will also look at how well AA and DL have done compared to each other in routes which they have both flown and on that basis, the advantage is Delta's. AA dropped JFK to Tokyo service while DL retains it and AA also underperforms DL and UA from Los Angeles to Tokyo. The JAL partnership can't be used as justification for why AA dropped JFK to Asia service because AA underperforms DL from Los Angeles to Narita where Japan Air is larger than DL.
The DOT will look at


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(@orion)
Joined: 10 years ago

Posts: 10

Why are there only 7 flights per week for US carrier between LAX and PEK? Air China seems flying twice or three times a day between these two cities. DOT should try to get the rights for both DL and AA. If both can fly between LAX and PVG, why don't both fly between LAX and PEK?


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Diamond
(@tim-dunn)
Joined: 5 years ago

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Posts: 7468

The treaty between the US and China only allows one more US carrier daily flight to Shanghai or Peking - both of which use the same bucket of frequencies.

The DOT could also strip UA of frequencies it has been awarded for a 2nd SFO-PVG flight but which it can't start because it doesn't have slots. If that happens, both AA and DL could start LAX-PEK.

Related to this case is the Haneda route case. The DOT has said that all current Haneda routes could be reassigned which means that AA could lose its LAX-HND route and might choose to reassign it elsewhere. The same is true for all HND routes. Someone is likely to get a daytime HND flight and there is a good chance that AA will drop its Narita flight from LAX given that it is the weakest carrier on LAX-NRT. It would take AA winning PEK and retaining both Tokyo flights to gain a competitive advantage at LAX;


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