Delta Gives Up On Portland To Tokyo Haneda Route

Delta Gives Up On Portland To Tokyo Haneda Route

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After quite some back-and-forth with the United States Department of Transportation (DOT), Delta Air Lines is giving up a Tokyo Haneda slot…

The backstory of Delta’s Portland to Tokyo Haneda route

Tokyo has two major airports — Narita Airport (NRT) and Haneda Airport (HND). Haneda is much more convenient for those visiting Tokyo, but historically most long haul flights have operated to Narita. However, Haneda has increasingly been opening up slots for long haul flights, which airlines have been very excited about.

Back in 2019, the DOT was in a position to award US airlines a dozen additional slots for Haneda (Japanese airlines were offered a similar number of slots). The DOT is supposed to award these based on what’s in the best interest of the public, so airlines try to make the case for why a particular route is in the public’s best interest.

Those 12 slots ended up being split between four airlines (American, Delta, Hawaiian, and United). Delta got lucky, and ended up being awarded five slots, to fly to Haneda from Atlanta (ATL), Detroit (DTW), Honolulu (HNL), Portland (PDX), and Seattle (SEA), complementing the carrier’s previous service to Haneda from Los Angeles (LAX) and Minneapolis (MSP).

These Haneda slots operate with a “use it or lose it” clause, so airlines actually have to serve these routes, or else the slots can be taken away. However, these routes were supposed to launch in March 2020, and as you might have guessed, that wasn’t a great time for transpacific travel. As a result, the DOT granted a dormancy waiver, allowing airlines to postpone any Haneda routes, without losing the slots.

That waiver is finally coming to an end as of October 2023. Delta still hasn’t launched its Portland to Tokyo Haneda route, so the airline is making an interesting decision…

Delta was granted five additional Tokyo Haneda slots

Delta won’t fly from Portland to Tokyo Haneda

For the past several months, Delta has been urging the DOT to give the airline flexibility to operate this Haneda slot out of a different airport. Delta just doesn’t want to fly from Portland to Tokyo Haneda, and has argued that market conditions have changed since the slot was allocated for Portland, and the route is no longer viable.

The DOT has argued that if Delta doesn’t want to operate the route for which the slot was granted, it can be returned to the DOT, and the DOT will start a process of awarding the slot once again. As the DOT argued:

“The department believes, consistent with our past practice, that should any of the carriers selected for Haneda service wish to change their U.S. gateway, the public interest would be best served by our consideration of such a request on the basis of a fresh and complete evidentiary record, and in light of the circumstances presented at that time.”

“Such record would offer the opportunity not only for arguments and evidence that the requesting carrier might present in support of its proposed shift, but also potential arguments and evidence of other interested carriers and communities in favor of alternative outcomes that they believe would best maximize public benefits.”

After a lot of debate, the DOT has given Delta a firm “no” when it comes to switching the gateway for its Portland to Haneda route. As a result, Delta has informed the DOT that the airline no longer plans to move forward with its Portland to Tokyo Haneda service.

It will now be up to the DOT to award this to another airline. United has expressed interest in operating to Tokyo Haneda from either Guam (GUM) or Houston (IAH), so that seems like the leading possibility at this point.

United could very well pick up this Tokyo Haneda slot

Now, a few thoughts:

  • I love how greedy and self-serving airlines sometimes are; Delta was granted 41% of the available Haneda slots for all US airlines based on the specific city pairs in which it promised to operate these services, but then it wants the flexibility to use this slot for something else, without giving other airlines a chance to make their case
  • It’s surprising that Delta can’t make a Portland to Tokyo route work; the airline operated a Portland to Tokyo Narita flight back in the day, and on top of that, transpacific capacity is so limited at the moment, with some of the highest fares we’ve ever seen
  • This clearly reflects Delta’s weakness in Asia outside of its joint venture with Korean Air, as Delta is focused on routing everything through Seoul Incheon (ICN); Delta also has the disadvantage of not having a major partner in Japan, while American has Japan Airlines and United has All Nippon Airways
Delta is heavily focused on its Korean Air joint venture

Bottom line

Delta is giving up on its Portland to Tokyo Haneda route, which it received permission to operate back in 2019. The airline argued that market conditions had changed, and wanted the DOT to give the airline flexibility to operate this service out of another airport.

The DOT (correctly) denied this request, and will instead award this slot to the airline that can make the most compelling case. It’s pretty wild that Delta is just willing to hand a valuable Haneda slot back to the DOT, especially in this environment…

What do you make of Delta not being able to make Portland to Haneda work?

PS: Grabbing my popcorn to see how a certain someone is going to spin this…

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  1. Unhappy Traveller Guest

    I was just notified of the cancellation of our flight through Portland. Very unhappy. The only option they say now is to actually fly from the west coast going in the opposite direction through ATL to get to Haneda to catch my connecting flight out of Tokyo. Delta’s royally screwed us this time.

  2. John Guest

    Why doesn't United fly it out of Portland?

  3. Cliff Guest

    If Delta don’t want to play by the rules suck it up and take your high fares somewhere else.

  4. JHoward Guest

    The current conditions in Portland have rendered that city unfit for consideration as an origin for this service. It is so unsafe there that the police are unable to keep up with the massive number of rampant crimes.

  5. Daniel Wilson Guest

    Its not a Hub like nearby Sea-Tac so no feed

  6. PJPJ Guest

    This is the source document. DOT-OST-2020-0035-0035
    Delta CSRs are not aware of the changes - Yet-
    I have a reservation for that flight.
    - It will be good publicity to see how Delta handles existing reservations.
    https://www.regulations.gov/document/DOT-OST-2020-0035-0035

    1 more reply
  7. PJPJ Guest

    WHEN is this effective?
    e.g. - If we have an existing reservation for Nov, will that flight take place?

  8. DENDAVE Member

    I bet Ben needed a refill of his popcorn for this one...

  9. Brick Bradford Guest

    Situations change all the time. For example, United announced they will not re-start their flights from Honolulu to Tokyo. Granted that flight is to NRT, not HND, but it is an example of shifting demand.

    5 more replies
  10. DL Guest

    This was shameless slot squatting. Hope it goes to a route that will actually have passengers on it (with fares sold at market price).

    1. Tim Dunn Diamond

      Like what UA is doing to South Africa?

  11. Mike Guest

    Delta’s management is pretty smart. They are the #1 airline in the U.S. I’ll go with Delta. Aloha, Mike

  12. Leigh Guest

    Why does no one remember in the legacy days for both DL and UA, aircraft of that era couldn’t reach the Asia routes without NRT as a hub? It’s different now with the current generation of aircraft…so the whole model/strategy is different.

    1 more reply
  13. Syd Guest

    It’s nonsense that Portland still has any airline service at all, forget about service to Japan.

  14. Brian Guest

    Since 2019, the price of fuel, labor/pilot salaries, and the cost of aircraft have all increased dramatically. Makes sense for DL to reevaluate flying to HND out of a non hub.

    DL's attorney's are going to press their companies interest to keep the slot and the FAA will want to keep its right to assign new slots to HND. Not much to the story.

  15. ZTravel Diamond

    Completely agree on the jv with Korean. It’s very dysfunctional and not well thought through. Korean on its own is a good airline and I like their soft product, but gosh if you book through Delta.. you are screwed! Never again!
    Delta made a major mistake when they dismantled their NRT hub! I miss that 767 down to Singapore!

    As delta becomes more of a travel agency (or a CC company), they become...

    Completely agree on the jv with Korean. It’s very dysfunctional and not well thought through. Korean on its own is a good airline and I like their soft product, but gosh if you book through Delta.. you are screwed! Never again!
    Delta made a major mistake when they dismantled their NRT hub! I miss that 767 down to Singapore!

    As delta becomes more of a travel agency (or a CC company), they become less and less interested in international routes, presence, good service, well and travelers.

    1 more reply
  16. vbscript2 Guest

    DoT is making the correct call here, but their decision in 2019 also wasn't unreasonable for the time.

    The point you mention regarding AA and UA having JAL and ANA respectively is actually exactly why it made sense for Delta to get a disproportionate share of the HND slots. Basically, the change allowed them to shift all of their existing Tokyo services (of which PDX was one) from their ex-hub at Narita to Haneda, which...

    DoT is making the correct call here, but their decision in 2019 also wasn't unreasonable for the time.

    The point you mention regarding AA and UA having JAL and ANA respectively is actually exactly why it made sense for Delta to get a disproportionate share of the HND slots. Basically, the change allowed them to shift all of their existing Tokyo services (of which PDX was one) from their ex-hub at Narita to Haneda, which was necessary in order to remain competitive after the HND long-haul slots began opening up. This served the public interest by giving more competition, essentially 3 options vs. 2 that would have otherwise happened ANA and UA and AA and JAL have JVs for trans-Pac flights, so that's really just 2 options that are actually competing without Delta being in the mix.

    Allowing Delta to keep the Portland route - a route which otherwise would not have been served by any carrier - made sense at the time, especially with Portland being a growing and generally successful city back then and Delta still connecting some trans-Pac traffic. Now, however, the Portland metro statistical area is seeing only very slight growth and Portland itself has actually been losing population. And, post-pandemic, Delta is no longer feeding traffic to Portland. Even in 2019, PDX had only negligible growth in traffic year-over-year. As of 2022, it was still far below 2019 levels. Especially with the shortages of aircraft and crews and no one knowing when trans-Pac traffic would come back, it made no sense for Delta to continue those flights into PDX, so it has now converted purely into a station whose only flights are to Delta hubs and their partner hub at AMS. With the change in Portland itself as well as the change in Delta's presence there, it's understandable why the Portland-Tokyo route is no longer viable, especially at a time when they need those planes and pilots on so many other much more profitable routes. Even more so with the SEA hub only a short hop away.

    I think Delta had a very strong argument to get all of the routes they requested - and received - in 2019. However, DoT is correct to require that an open competition - which could include bids from other gateways by Delta - rather than just letting Delta shift the route to whatever gateway it wants. Of course, Delta would have been crazy to not request that, but DoT would have been crazy to approve it.

    It would be great to see DOT grant the new HND route to a city that doesn't yet have Tokyo non-stop service, but that has the growing traffic to support such a route. BNA and AUS come to mind. BNA in particular has had Tokyo near the top of its list of desired routes for quite some time, as there are a lot of close business connections between Tokyo and Middle TN. Nissan's North American HQ is just outside Nashville, for example. And, unlike PDX, BNA and AUS are both already far above their 2019 traffic levels (as well as above PDX's 2019 levels.)

    2 more replies
  17. RF Diamond

    Correct decision by the DOT.

    1. Tim Dunn Diamond

      the DOT is holding onto its right to allocate rights, not making any decision about any specific market or carrier.
      AA, DL and HA all asked the DOT to allocate gateway flexibility - to move HND flights from one hub to another.

      And what is consistently lost in this discussion is that HA was not operating a higher percentage of its HND flights than DL and HA will likely forfeit one of its flights.

      ...

      the DOT is holding onto its right to allocate rights, not making any decision about any specific market or carrier.
      AA, DL and HA all asked the DOT to allocate gateway flexibility - to move HND flights from one hub to another.

      And what is consistently lost in this discussion is that HA was not operating a higher percentage of its HND flights than DL and HA will likely forfeit one of its flights.

      Further, it is certain that UA, which is the only one of the 4 US carriers that serve HND will not gain any more flights or at least will not gain the frequency that DL is giving up. If UA gets anything, it will be HA's frequency, not DL's.

  18. Jason H Guest

    When Delta initially flew PDX-NRT they had feed on the NRT side which allowed then to connect passengers over NRT to several destinations around Asia, the HND flight relies solely on Tokyo bound traffic which DL believes is no longer sufficient to support the flight. Yes, Delta received the bulk of the HND slots when awarded but that was mainly because AA has a joint venture with JAL and UA with ANA. UA actually already...

    When Delta initially flew PDX-NRT they had feed on the NRT side which allowed then to connect passengers over NRT to several destinations around Asia, the HND flight relies solely on Tokyo bound traffic which DL believes is no longer sufficient to support the flight. Yes, Delta received the bulk of the HND slots when awarded but that was mainly because AA has a joint venture with JAL and UA with ANA. UA actually already serves IAH-HND through their joint venture partner ANA. If you apply the DOT’s previous reasoning, IAH definitely isn’t a sure thing. It will be interesting to see what AA and DL apply for.

  19. Anon Guest

    PPX-TYO is a legacy Northwest route, which Delta inherited at the merger. Northwest was a partner with Alaska and so was Delta, until it decided to build a hub in Seattle. Alaska no doubt provided a lot of PDX connections that helped that flight. Without any meaningful connections beyond PDX (a metro area about as populous as St. Louis or Cleveland), and with no DL partner or connectivity at HND, this is no surprise at...

    PPX-TYO is a legacy Northwest route, which Delta inherited at the merger. Northwest was a partner with Alaska and so was Delta, until it decided to build a hub in Seattle. Alaska no doubt provided a lot of PDX connections that helped that flight. Without any meaningful connections beyond PDX (a metro area about as populous as St. Louis or Cleveland), and with no DL partner or connectivity at HND, this is no surprise at all.

    I wonder if JAL will start a PDX flight from Narita. They already do one to San Diego, a similarly sized metro area, and they're in Oneworld with Alaska, which could provide connectivity. It would be the only nonstop to Asia from Portland as well.

    1 more reply
  20. NK3 Diamond

    So if Delta did not want to operate it from PDX, but did not want to give it up, what gateway did they want to use? A second daily flight from SEA or LAX? A new route from SLC? I am curious if they will reapply once the DOT opens up applications.

    4 more replies
  21. Tim Dunn Diamond

    This would be a good time to remind some people that United acquired a Miami hub to Latin America and quickly dismantled it. United is smaller to Florida now than AA B6 DL NK WN and UA

    10 more replies
  22. Mike Mahoney Guest

    Delta should have launched the route out of a hub. For whatever reason, they continue to ignore SLC internationally.

    3 more replies
  23. Tim Dunn Diamond

    Just as with the Skymiles discussion, let's see how the US-Japan market shakes out in a couple years.
    Delta's Portland hub moved metal across the Pacific but had nowhere near the connecting feed necessary to make transpacific flights work.
    Delta acquired a Tokyo hub from Northwest which built its then fairly extensive route system around Narita airport.
    The Japanese government's stated intent to move all premium carrier longhaul service to Haneda eventually...

    Just as with the Skymiles discussion, let's see how the US-Japan market shakes out in a couple years.
    Delta's Portland hub moved metal across the Pacific but had nowhere near the connecting feed necessary to make transpacific flights work.
    Delta acquired a Tokyo hub from Northwest which built its then fairly extensive route system around Narita airport.
    The Japanese government's stated intent to move all premium carrier longhaul service to Haneda eventually was the start of opening HND airport which will be completed at some point in the future.
    Portland to Tokyo was not viable as a standalone point to point route even pre-covid but large contracts such as Nike kept it at breakeven levels.

    Delta tried to move its beyond Tokyo flights to Haneda when Haneda began to open up but failed.

    And none of the discussion about PDX-HND can be had w/o acknowledging that DL built a roughly 150 flight/day hub in SEA that had 4 transpacific flights/day until covid and is limited from returning to that size by China.
    By next summer, Delta will have a transpacific system from LAX that is even larger than at SEA.

    It is not a strategic failure to pull the plug on strategies that are no longer viable. DL's west coast to Asia network will be from LAX and SEA. UA does not and never has operated a non-hub route to Asia other than from, wait, wait, PDX, which it gave up as part of the Pan Am purchase.

    The chances of United getting another HND route are very, very low. American might have a chance given how few Tokyo flights they have but they also have the JAL JV.

    Some people love to proclaim failure but let's wait until Delta has 20 more transpacific capable aircraft and a solid market return in Asia and see what Delta does.

    The fact is still that with many more flights than Delta, over the past 10 years, United made nowhere near as much as Delta across the Pacific.

    it's a marathon, not a sprint.

    9 more replies
  24. Tokto-bazed Guest

    Delta should return to KIX and other carriers should increase flights. 90% of all Americans who visit for tourist pruposes end up in Kyoto on their cliche "Golden Route" tours, Osaka is a major finance and business hub and is more centrally located to more Japanese cities in terms of proximity and would offer more award availability. Pre-pandemic, Qantas, SwissAir, Alaltalis before they went bust, BA and Air Canada all had routes too

  25. Roberto Guest

    Timmy Dunn needs to increase his anti-depressant mg after this brutal week!

  26. PSC Guest

    Whatever the eager beaver says - DL flew PDX NRT in 2019 - when they had no fake failed attempt at a pacific hub in Japan. If the beyond traffic was the issue, they would have ended PDX then. The true downfall is that DL has given up so much ground in Asia they have little left to stand on - other than praying the OZ KE merger goes through to give them free reign...

    Whatever the eager beaver says - DL flew PDX NRT in 2019 - when they had no fake failed attempt at a pacific hub in Japan. If the beyond traffic was the issue, they would have ended PDX then. The true downfall is that DL has given up so much ground in Asia they have little left to stand on - other than praying the OZ KE merger goes through to give them free reign to have 100% control over Korean airfare. The reality is - DL can’t win when they have competition on equal footing, just look at AS and B6 holding them at bay easily in SEA/BOS. Remember when they were going to try for a focus city in MIA - I’m sure you can guess where that went. Plus them taking BNA (WN) and SJC (UA) off their focus city list.

    3 more replies
  27. T- Guest

    I don’t see the market from Portland unless Delta funnels travelers through the city which it has Seattle (although tight) for. I never saw the market.

    3 more replies
  28. RJ Guest

    Route should be reassigned to a different Carrier not named Delta (they have played games with routes for years and do not show any commitment to a given market other than ATL). UAL and AA have Joint ventures with two of the large Japanese carriers and either could use the slot as well as Hawaiian

    1 more reply
  29. William Guest

    Delta has destroyed a good route, they used to fly direct to Manila as a continuation from Narita. Quite simply put, Delta is so heavy into SeaTac. They feel no allegiance to Pdx and serving that airport, they’ld rather route everything north to over saturate and compete with Alaskan

    1. vbscript2 Member

      They flew to Manila all the way up until the pandemic killed trans-Pac demand. I wouldn't be surprised to see it return eventually, but from ICN rather than HND (as it already was just before Covid.) It was presumably there mostly for government traffic, since it's required to prefer flights on U.S.-flagged airlines when reasonably possible. The only other option back then was UA via Guam, which also required a stop in HNL to get to GUM.

  30. A_Japanese Gold

    Sad for Japanese as we need DL as a sizable competitor against JL/AA and NH/UA duopoly.
    I think Japan still has loyal DL customers inherited from NW and Dl has lucrative Delta Gold Amex Card offering instant gold medallion status for first year, which could be retained with annual 10000USD spends on that card for subsequent years.

    4 more replies
  31. Rozellev Guest

    Delta pilots have complained so much about them moving all their longhaul to JV ‘s so glad they had to give up these flights.

  32. Tim Dunn Diamond

    No, Ben, you simply have resorted to writing stories about Delta which you know I will counter because it generates page clicks. I'm happy to put money in your pocket - which clearly selling credit cards and loyalty programs don't do enough of and Delta is threatening your revenues in that line of business.

    The facts of the PDX-HND case are:
    -NW helped rebuild JAL after WWII and helped NW and Pan Am obtain...

    No, Ben, you simply have resorted to writing stories about Delta which you know I will counter because it generates page clicks. I'm happy to put money in your pocket - which clearly selling credit cards and loyalty programs don't do enough of and Delta is threatening your revenues in that line of business.

    The facts of the PDX-HND case are:
    -NW helped rebuild JAL after WWII and helped NW and Pan Am obtain unprecedented rights beyond Tokyo to other parts of Asia.
    - HND was the international airport at Tokyo at the time
    - The Japanese government opened NRT and forced virtually all carriers to move their longhaul flights there.
    - UA operated PDX-NRT for years but bought Pan Am's Pacific network in 1985 which included Asia flights other than to Tokyo while NW built its Pacific network almost entirely around NRT.
    - The DOT required UA to divest PDX-NRT as part of the PA asset acquisition and DL picked up the route as part of building its PDX to Asia mini-hub which lasted a while but like AA's SJC mini-hub never worked.
    - When DL merged w NW in 2008, the route became part of the NRT hub operation
    - The US and Japanese government pursued Open Skies and, at the same time, the Japanese government decided it wanted to, long-term, make NRT a low cost carrier airport because it could never build it to intended capacity due to a single farmer that would not sell his land to develop runways
    - As part of Open Skies, joint venture partnerships developed between AA-JL and UA-NH. DL tried to do a deal w/ JL but was unable because it was already the largest carrier from the US to Japan
    - Although the US and Japan have Open Skies, Haneda access is still highly limited by treaty, unlike w/ most Open Skies countries.
    - As new HND access slowly became available, DL has repeatedly won more HND access than AA and UA because DL does not have a Japanese JV partner while AA and UA does. The US has granted DL more access to HND to balance JV capacity, not because of luck.
    - As DL built its SEA hub and as DL slowly pulled down beyond flights from NRT, PDX-Tokyo became a point to point, non-hub on either end route.
    - The PDX economy has taken huge hits during the pandemic and a point to point route is not viable.

    those are facts. My opinion is that DL will continue to have preference with the DOT over AA and UA for where the reallocated route will be authorized because of the same joint venture balance issue.
    The DOT wants to keep the right to issue rights to itself which is why the denied the request to transfer routes which AA and HA both supported. UA was the only objector.
    I believe DL will apply for and win JFK-HND, the largest market they don't serve to Japan and a slam dunk given their hub there.
    They briefly loaded DTW-HND as a 339 instead of an A359 so they have the aircraft if they win the rights.

    btw, thanks for recognizing how much I influence what happens on your blog. I am proud to be an active participant and do look forward to meeting you and the family. :-)

    20 more replies
  33. FNT Delta Diamond Guest

    What would have been interesting is if Delta had announced a return to Guam by doing Portland-Guam-Tokyo.

    1 more reply
  34. FNT Delta Diamond Guest

    Before COVID, I believe Portland-Tokyo and Portland-Amsterdam were effectively "the Nike routes." Just like Cincinnati-Paris was and is "the Procter & Gamble route."

    Toss in all the problems with crime and empty downtown businesses, Portland just isn't a big O&D market for Tokyo.

    2 more replies
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Roberto Guest

Timmy Dunn needs to increase his anti-depressant mg after this brutal week!

5
Never In Doubt Guest

“No, Ben, you simply have resorted to writing stories about Delta which you know I will counter because it generates page clicks” Here lies the crux of Tim Dunn’s narcissistic OCD mania about himself / Delta. He actually thinks posts about Delta are instead about him! Sir, seek the help of your local mental health professional.

4
AD Diamond

@Demseyzdad, I'm not a Delta apologist but there is more to this story. I was in PDX in the 90s and flying 100k miles per year on DL, much of it to Asia. It wasn't just a bad decision. The reason that Delta pulled out of their hub in Portland was that there were huge issues with US Immigration at PDX harassing Asian travelers. A number of cases made the news, at least locally, and I heard more about it from the DL staff as well. Word got out in Asia and travel originating in Asia to PDX fell off a cliff. Ultimately, DL cancelled all their Asian flights out of PDX and pulled out of PDX, shifting the west coast Asian traffic to LAX. In the matter of a couple years PDX went from a major hub to an outstation with a handful of flights a day to Atlanta, SLC and LAX and I became an Alaska flyer for the next 20 years until I moved east.

2
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