Delta Buys Stake In Korean Air
Wow, this is a significant development. Delta acquires stake in Korean Air It has just been announced that Delta has acquired a 4.3% equity stake in Hanjin-KAL, the largest shareholder of Korean Air. Delta plans to increase their equity stake in Korean Air to 10% over time, pending regulatory approval. Delta and Korean Air have…
Continue reading: Delta Buys Stake In Korean Air
Share your questions, experiences, and thoughts below.
Well I guess we can start the countdown-clock to when AS redemptions on KL will be terminated....
Well, it's extra time on travel for sure, but it's not like ICN is the worst place to be stuck at.
From the above quote "...best service and the finest experience connecting the U.S. with Asia." Does this also offer the "...best service and the finest experience connecting South Korea with North America"? Is this more focused on what it gives DL flyers rather than KE flyers?
Great strategy. I just wish that the knuckleheads running AA would do the same thing. They have only invested in China Southern as a last resort. There are so many joint ventures they could be doing and airlines that they could be investing in but they seem to still be trying to figure out how to run an airline.
Simply pathetic management sometimes
whoops wrote this in the wrong post! I believe Delta also has a joint venture with China Eastern.... and I'll admit I'd much rather transit through ICN than PVG
Unfortunately, for travelers used to great service and reasonable prices from a Korean airline. Now, if Delta has it's way we will have the lesser quality service and more expensive flights.
DL seems to be the only US airline that is using current profits to build to the future. At least they're the only one that seems to be proactive rather than reactive.
KAL cuts first class due to high debt levels, weak Won, and large drop in profit. Delta leverages KAL's weakened position with cash infusion, basically telling them to expand their routes, giving Delta an Asian hub. KAL takes cash infusion orders 30 more 787's. Profit?
Is ok, KAL's dead to me when they dropped Chase 🙂
So how long before Skypass goes revenue based for earning and dynamic for redemptions?
There was too much competition anyway, so less freedom and flexibility is ultimately good for the consumer.
@armando it's already begun - KL redemptions have been impossible for "technical reasons" for a few weeks and when I just searched again I noticed a lot of award space has already dried up.
Horrible. We dont need US companies meddling.
And for those that doesnt seem to know ICN is one of the best airports. Movie theater, free tours, ice skating rink, golf course, etc
@wooootles Just curiosity, what makes you think "it’s not like ICN is the worst place to be stuck at" ?
I do wonder if Virgin Australia is next on DL's investment (taking either the HNA or EY stake) considering VS and VA about to apply for JV, undoubtedly under the instruction of DL (as VS's half-owner and 'ruler')
We will miss the flights on Delta metal all the way to SIN. Korean Air service is fine but their integration with the Delta IT systems is incomplete. Also, we have had long layovers in Seoul.
We much prefer flying Delta from USA to NRT then onto SIN on Delta metal also. I understand that is expected not to be an option soon.
"I’ll be curious to see if this investment leads to an even higher level of cooperation in the short term."
I assume you mean "in the long term"?
Not anything that isn't already implied, a la protecting recently agreed partnership & APAC hub, but -
https://www.reuters.com/article/us-delta-stake-idUSKCN1TL1EO
Outlines the event, reasons, impact fairly well using both investment terminology but easily understandable.
Yes, Alaska Airlines has previously lost KLM-Air France and Aeromexico as partners as a result of Delta's investment in these particular Airlines, and we know Delta competes fiercely with Alaska Airlines at their hubs in Sea-Tac International Airport in the Seattle area and really has it in for the little guy. At the end of the day, Alaska Airlines has better Asian airlines to work with such as Japan Airlines, Singapore Airlines, Hainan Airlines, and Emirates. all of these airlines either are or have been considered top-of-the-line five star Airlines as rated by skytrax. Korean Air is only four stars. The SkyTeam Alliance which includes delta and korean is the worst of the three alliances for the Asia Market, and now that they are losing China Southern from that Alliance, it might just get worse. So, I say, whatever if korean servers ties with alaska. Goodbye, good riddance to delta and its b*tches. Maybe Alaska can partner with five-star Eva if they lose Korean. I'm glad that Alaska Airlines has proactively sought to build good relationships with strong Airlines in Asia as a result of its rivalry with Delta, knowing that Delta would use all its might and influence to undermine Alaska Airlines' business relationships. In many ways, this rivalry is beneficial for Alaska. The Alaska Airlines mileage program is much better as a result, and I'm glad that I am a member of it.
