Delta Airlines to Continue Flight Service Pierre-Minneapolis Route

Delta Airlines had planned to cut its Pierre-Minneapolis route Nov. 20 because of a drop in passengers, but the Department of Transportation issued an order requiring the airline to continue the route through Jan. 15 of next year, that Delta Airlines to continue flight services Pierre-Minneapolis Route.

U.S. Sen. Tim Johnson says Delta Airlines will continue its Pierre-Minneapolis route into the new year.

The South Dakota Democrat said Wednesday that the Department of Transportation issued an order requiring the airline to continue the route through Jan. 15 of next year. DOT approved the move, but the city of Pierre appealed the decision, saying the airlines flight is important to businesses and residents, as well as state government.

Johnson says the 60-day extension will give air travelers a flight option while DOT reviews the appeal and allows the city time to line up a new carrier.

Delta Air Lines Traffic Fell 3.8 percent as Airlines Reduce Capacity

Delta Air Lines traffic fell 3.8 percent in October at the sharpest pace since the beginning of last year as the airline reduced capacity.

Traffic fell 3.8%, the sharpest drop since the company reported a 5% decline in January 2010. Legacy carriers have encountered more difficulty in sustaining traffic gains recently. The carriers have kept fares up as they face higher fuel prices.

In addition, the traffic figures are going up against tougher comparisons to last year’s revival in travel demand. In the year-ago month, Delta reported 8.6% higher traffic, its strongest gain since the recession.

Delta also it decreased capacity 3.1% in October. As fuel prices climb, airlines are tightly managing their capacity to keep costs in check.

Load factor–a measure of plane fullness–fell to 82.8% from 83.4%, as worse occupancy on international flights outweighed better domestic travel.

Last month, Delta reported its third-quarter profit jumped 51% despite pressure for higher fuel costs as it improved the top line. However, fuel hedging effects kept core earnings lower than expected.

Shares were down 0.2% at $8.24 in recent trading, while the wider market was up broadly.

Delta Air Line Request Esensial Air Service Funds for Flight Routes to Sioux Gateway Airport

Delta Air Lines threatened Friday to pull out of Sioux Gateway Airport unless the federal government starts subsidizing its money-losing routes here.

The move puts the Sioux City airport at risk of losing commercial air service altogether. Delta, which offers three daily connecting routes to Minneapolis/St. Paul International Airport, has been Sioux Gateway’s only commercial carrier since 2008.

In a filing Friday with the U.S. Department of Transportation, the Atlanta-based airline said it can’t afford to keep its Sioux City routes going without Essential Air Service funds.

The EAS program gives subsidies to airlines to fly into small markets that otherwise would have no air service.

Airline and airport officials stressed there will be no immediate change to service at Sioux Gateway, where the termal building was recently modernized at a cost of $6.2 million. Delta’s filing starts a 90-day process in which the federal DOT will review the airline’s application for EAS funds.

Delta said it is losing too much money on flights at Sioux Gateway, where its 50-seat jets are on average only 51 percent full. That compares to an 83 percent load factor for its overall domestic system.

“We want to make it financially feasible to continue service to Sioux City,” Delta spokeswoman Kristin Baur said.

Local officials said they expect to retain air service, whether it’s with Delta or another carrier.

In the first six months of this year, the number of Delta passengers at Sioux Gateway was up 26 percent, compared to the same period last year, airport director Curt Miller said.

“I think we’re showing some real strength right now,” Miller said. “We’re having discussions with other air carriers about expanding the service here. … I’m comfortable that someone will want to step up and provice service.”

Dangling proceeds from a $500,000 federal grant as an incentive, Sioux City officials have been in talks with other carriers in recent months about adding routes to Chicago O’Hare.

Delta’s request for EAS subsidies at Sioux Gateway comes amid a fight over the future of the program. As part of broader reauthorization of the Federal Aviation Administration, the House and Senate have approved different versions of bills that narrow the list of cities eligible for EAS subsidies.

House and Senate negotiators have been in talks to settle their differences on a wide range of issues in the FAA bill. In a statement Friday, Sen. Tom Harkin, D-Iowa, said he has been in regular contact with the lead Senate negotiator, Jay Rockefeller, on the importance of preserving the program for airports like Mason City, Fort Dodge and Burlington, where EAS funds are now directed, and to preserve the rights of Sioux City and Waterloo to join the program.

Sioux City and Waterloo are among seven cities where Delta signaled Friday it could no longer afford to operate flights without subsidies. The airline also identified 17 other airports where its flights are already subsidized and it currently collects federal funds, but wants to end service anyway.

Delta said it is losing a combined $14 million a year in the 24 small airports in Iowa, Minnesota, Michigan and South and North Dakota.

The federal government has the option of finding a replacement carrier for those markets, or rengotiating the subsidy rates with Delta.

If it authorizes EAS funds for Sioux Gateway, Miller said the DOT could open up the market for bids not only from Delta, but also other carriers.

The filing Friday is part of Delta’s strategy to cut its capacity by 4 percent to lower fuel costs and manage demand. Delta inherited its Sioux City routes after it acquired Eagan, Minn.-based Northwest Airlines.

Delta Air Lines and US Airways Announce New Agreement to Transfer Flying Rights in LaGuardia Airport and Reagan National Airport

Delta Air Lines and US Airways today announced a new agreement to transfer takeoff and landing rights at New York’s LaGuardia and Washington D.C.’s Reagan National airports. The agreement, filed today with the Federal Aviation Administration (FAA), revises a 2009 transaction agreed between Delta and US Airways and approved by the DOT, but under terms not acceptable to the carriers, and never completed. The new agreement enables Delta and US Airways to expand service and increase competition at two of the nation’s key cities, and provides the opportunity for additional access to LaGuardia and Reagan National for new entrants and airlines with a limited presence at the airports.

Under the agreement, Delta would acquire 132 slot pairs at LaGuardia from US Airways and US Airways would acquire from Delta 42 slot pairs at Reagan National and the rights to operate additional daily service to Sao Paulo, Brazil in 2015, and Delta would pay US Airways $66.5 million in cash. In addition, the transaction could result in the divestiture of up to 16 slot pairs at LaGuardia and eight slot pairs at Reagan National to airlines with limited or no service at those airports. The completion of the transaction is subject to certain closing conditions, including government and regulatory approvals. A slot pair is the authority to operate one takeoff and one landing.

“With this agreement, Delta will enhance competition in New York, which is already one of the most competitive aviation markets in the world, by expanding the passenger capacity at LaGuardia by as many as 4 million seats annually without increasing congestion,” said Richard Anderson, Delta’s Chief Executive Officer. “Our expanded presence at LaGuardia will double our available destinations, offering customers more frequent and convenient service at New York’s preferred airport for business travel.”

US Airways’ Chairman and Chief Executive Officer Doug Parker said, “This agreement further strengthens our commitment to increase service and create more options for our customers wishing to travel to and from Washington, D.C. As a result of this transaction, many communities, including several smaller ones, will be able to enjoy additional nonstop service to our nation’s capital.”

The proposed transaction will provide significant direct benefits to consumers flying to and from New York and Washington, as well as consumers traveling to other destinations along the East Coast as the two airlines enhance their networks. These benefits are generated by improved connectivity, enhanced service and increased efficiency at both airports.

In addition, the competitive landscape in both cities has changed significantly since the transaction was first proposed in 2009. New entrants and smaller carriers, including AirTran Airways, JetBlue Airways and Southwest Airlines, have gained considerable access to slots at both LaGuardia and Reagan National and expanded service at these and other airports in the New York and Washington regions. Also, mergers between United Airlines and Continental Airlines and Southwest and AirTran have dramatically sharpened competition on the East Coast generally and particularly in the New York and Washington regions. Nonetheless, to address concerns previously raised by the Department of Transportation, the agreement provides for the divestiture of up to 16 slot pairs at LaGuardia and eight at Reagan National if required by the regulatory authorities.

The proposed transaction has generated significant support from elected officials and community leaders in New York and Washington. In addition, the City and State of New York, and both U.S. Senators from New York have supported the proposal, as have members of Congress representing New York, elected leaders in small communities and airports across the nation.

The airlines will dismiss their appeal of the DOT’s order regarding the original 2009 transaction that is currently pending in the U.S. Court of Appeals in Washington. Dismissing the appeal clears the way for DOT to consider the revised application.

New York

Delta’s expanded operation at LaGuardia will allow more and improved connecting service in New York, and ensure economically viable service to small communities, while creating an expanded network that will be particularly valuable for New York business customers. The airline will approximately double the number of nonstop destinations it serves from LaGuardia, including top business destinations and many cities not currently served nonstop by Delta or US Airways.

Delta will replace turboprop aircraft currently operated by US Airways with larger jets, adding as many as 4 million additional roundtrip seats available at LaGuardia without increasing congestion.

As part of the agreement, Delta will take control of US Airways’ Terminal C to create an expanded main terminal for customers. Delta will operate a total of 18 gates in Terminal C, and add one additional gate at Delta’s Terminal D, for a total of 29 gates in the two terminals. A 600-foot connector will be built to connect the two terminals. Delta also will convert the existing US Airways lounge in Terminal C to a Sky Club, while continuing to operate its current Sky Club in Terminal D.

Delta will continue to operate its popular hourly Delta Shuttle from its six gates at the Marine Air Terminal. In addition, Delta will spend up to $117 million to expand, renovate and consolidate terminals C and D over the next two years. Overall, the transaction will directly and indirectly generate an estimated 6,000 new jobs in New York.

Since making a strategic decision to build New York into a hub earlier this decade, Delta has made major investments across the region, boosting its economic impact to more than $13 billion annually. The airline is currently constructing a $1.2 billion project that will enhance and expand Terminal 4 at John F. Kennedy International Airport, creating a state-of-the-art facility for New York’s fastest growing global airline.

US Airways’ popular hourly Shuttle service between LaGuardia, Reagan National and Boston that is operated on dual-class mainline jets will remain unchanged as a result of the transaction. Also, US Airways will continue to offer its customers high-frequency schedules from LaGuardia to its Charlotte, N.C. and Philadelphia hubs and Pittsburgh with more than 60 daily weekday flights. All US Airways flights from LaGuardia will continue to arrive and depart from nine gates and parking positions in Terminal C and US Airways will build a new, state-of-the-art 5,000-square foot US Airways Club.

Washington, D.C.

At Reagan National, US Airways’ expanded operation will connect more small, medium and large communities with the nation’s capital and create additional flight options throughout the airline’s route network. US Airways expects to further increase its use of dual class mainline aircraft and soon to be dual class larger regional jets at Reagan National. The move will benefit customers by increasing the number of available seats between Washington and favorite destinations without increasing congestion.

US Airways plans to add at least 15 new destinations from Washington, to its network as a result of the transaction and competition will be further enhanced by US Airways adding service to popular destinations that are currently served by other carriers. As a result, business and leisure travelers as well as military and government employees will have more access to the nation’s capital and its downtown airport.

Following full implementation of the new schedule, US Airways will operate approximately 230 peak-day departures at Reagan National, a 20 percent increase over current service levels. The airline anticipates an increase of approximately 20 to 25 percent in passenger enplanements at Reagan National as a result of the new flights and schedule improvements. However, there will be no increase in congestion at the airport due to US Airways’ planned increase in scale and Delta’s reduction in slots.

The expansion is consistent with US Airways’ previously announced strategic plan to focus on growing its key, most profitable airports at its Washington focus city, its Phoenix, Philadelphia and Charlotte hubs and its US Airways Shuttle service. Once the transition is complete, more than 99 percent of US Airways capacity will be to or from its key airports.

Delta will continue to operate a robust schedule at Reagan National, with nonstop service between the airport and its seven domestic hubs and select cities. It also will continue to operate its Delta Shuttle between Reagan National and New York.

International Service

US Airways also will acquire from Delta in 2015 the rights to operate additional daily service at one of world’s most important business destinations – Sao Paulo, Brazil. As US Airways continues its strategic expansion into South America, the additional rights would allow it to operate two daily flights to Sao Paulo and continue its existing daily service to Rio de Janeiro, Brazil.

Since the 2009 transaction, Japan and the U.S. have made an Open Skies agreement that would enable US Airways’ service to Tokyo Narita International Airport. As a result, the transfer of slots at Narita from Delta to US Airways that was included in the 2009 transaction is not part of the new transaction.

Republic Airways Provide Six Additional Aircraft for Delta Routes

Republic Airways Holdings Inc. has amended its agreement to supply aircraft to serve routes for Delta Air Lines.

Under the new agreement, Indianapolis-based will provide six additional E-170 aircraft to serve Delta routes.

It follows a previously announced amendment in January 2011 in which Republic agreed to add eight E-170 aircraft to the service it provides under the Delta Connection flag.

Indianapolis-based Republic is a holding company with a fleet of 283 aircraft that also owns Chautauqua Airlines and Republic Airlines. The parent company operates a maintenance hub at Louisville International Airport.

The six additional aircraft are expected to be placed into service between July and October and will have a term of six years from the in-service date for Delta.

“These fleet adjustments between our contract and branded operations allow us to maximize our aircraft portfolio in the most cost-effective way,” Bryan Bedford, chairman, president and CEO of Republic Airways, said in the release. “In light of current oil prices, we will continue to focus on developing Frontier’s most successful and profitable routes while managing capacity at responsible levels.”

Republic also will remove three of its ERJ 135 aircraft from its fleet at the end of their lease term in September.

Air France-KLM and Delta Air Lines Partner to Bid 51 percent stake in Virgin Atlantic

Air France-KLM and Delta Air Lines are said to have partnered up for a potential bid on a 51% stake in Virgin Atlantic, the carrier owned by British entrepreneur Sir Richard Branson. The SkyTeam alliance members have reportedly appointed Goldman Sachs to advise them on a possible approach.

Sir Richard’s 51% stake is valued from £500 million to £1 billion by analysts. He hired Deutsche Bank to examine the airline’s strategic options after British Airways and Iberia completed their £5.2 billion merger, as well as made a transatlantic pact with American Airlines. The other 49% of Virgin Atlantic is owned by Singapore Airlines, after the carrier purchased it in 1999 for £600 million.

Air France and Delta teamed up last year to invest £1.3 billion in Japan Airlines. The Asian airline rejected the offer in favor of continuing its membership in the Oneworld alliance with British Airways and American Airlines.

Other airlines around the world have been consolidating and forging partnerships recently so that they can survive the recession and other factors, like the rising price of oil. However, Virgin Atlantic hasn’t become a member of any big alliances, and a review of the carrier’s position found several possible outcomes. These include a codeshare deal, selling part of Singapore Airlines’ stake to a 3rd party, joining an alliance and for Sir Richard to give up majority control as part of a bigger transaction.

Another airline interested in a bid on Sir Richar’s stake is Etihad Airlines. Chief executive James Hogan wrote to Deutsche Bank, expressing his interest in a deal, and he has hired Bank of America Merrill Lynch for advice.

Delta Air Lines Promotion Flight Service with Economy Comfort Seats on International Flights

Delta Air Lines will bring in “Economy Comfort” section, featuring more legroom and seats with additional recline on its long-haul international flights this summer, the US based airline announced on Monday.

“Just as Delta is investing in Business Elite, which is among the industry’s most competitive premium products, it makes sense to offer enhancements to our Economy Class service that provide additional comfort,” Glen Hauenstein, Delta’s executive vice president – Network Planning, Revenue Management and Marketing, said.

The new seats will be located in the first few rows of the Economy cabin on over 160 Boeing 747, 757, 767, 777 and Airbus A330 aircraft by May 2011.

The Economy Comfort seats will be available for booking from May onwards and at an additional cost of $80 to $160 one way. However, Delta said that frequent fliers won’t be charged for the Comfort seats, while lesser-frequent travelers will get 25-50 percent discounts.

The new seats will offer an additional 4 inches of legroom and up to 50 percent more recline than standard economy class seats. Fliers buying Economy Comfort seats will also get other perks such as complimentary drinks during the flight, Delta said.

Delta also said that the airline plans to offer 34 flat-bed Business Elite seats in all its 32 A330 aircraft by 2013.

Delta Air Lines to Benefit After Increase Airline Ticket Prices

After years of financial difficulties, major airlines were finally flush with cash in 2010, and 2011 is shaping up to continue its path to profitability for the industry.

Earlier this week Delta Air Lines and United Airlines increased fares on flights within the United States.

Delta raised prices on roundtrip domestic tickets by as much as $20, and United increased its prices by $10 roundtrip, according to an announcement sent out by Rick Seaney, chief executive officers of the site FareCompare.com. Airfare for shorter flights did not see a significant price hike as compared to longer flights.

Competing airlines will usually respond to fare hikes within a day and a half, and if most of a carrier’s competitors do not match its rate hike, the initiating carrier eventually backs down.

Seaney said in an e-mail late Monday that he had seen a large amount of price matching going on among airlines.

“Continental and US Airways matched the United Airlines version of the hike ($4 to $10 roundtrip), while American matched both United and Delta ($10 to $20 roundtrip),” Seaney wrote. “Southwest matched Delta in a relatively small number of markets.”

According to FareCompare, this is the fourth time airlines have tried to increase fares since mid-December and the second time since January 1.

On Tuesday, Delta reported fourth-quarter profits of $19 million and over $300 million in profit-sharing expenses. Expenses could increase by as much as $1 billion for fuel this year if oil prices do not eventually fall.

Richard Anderson, Delta’s chief executive officer said, “These results are a direct reflection of the success of our merger, cost discipline and debt reduction strategy and give us momentum to deal with the rising fuel prices we face in 2011.”

“Industry-wide fare increases, combined with growth in Delta’s ancillary products and services, will provide a more long-term, revenue-based solution to addressing the high fuel environment,” added Ed Bastian, Delta’s president.

High fuel prices going back to 2008 meant many airlines began cutting back on the number of flights they offered. Since then, they have been slow to expand.

How Air Travel and Airline Passengers Affected After Delta and American Airlines Pulled Airfare from Search Engines

Airline fees, higher airfares, and the increased costs of travel have been a burden for many travelers the last few years. As airlines look to increase their revenues and cut costs, many may follow the lead of American and Delta by eliminating their airfares from popular travel sites and search engines like Orbitz. And even with new fees that can help travelers like the Farelock fee, finding cheaper flights may become more difficult.

The airline industry is constantly changing. Lately, this has meant more fees, higher costs, and more frustrations for passengers. Where this latest move by Delta and American leads is uncertain at this point. However, many experts agree – it’s not good news for travelers.

1. Rising costs – One effect of this move could be higher airfares. One thing consolidator search engines do is to bring all airlines together to help offer the cheapest flights. This may mean combining flights on two different airlines to save you money on your trip. However, if some of those airlines are no longer available for purchase, entire flights may need to be booked on airline web sites. This may lead to more expensive flights since cheaper flights on other airlines can’t be combined.

2. Cheap flights more difficult to find – Aside from the rising costs of having to book your flight through one airline, this may also mean a lot more research to find the cheapest flight. Finding more affordable flights will mean some airfare search engines may not help you find the cheapest flight and you may need to look on individual airline sights to compare. This will mean more time and effort for travelers.

Keeping this in mind, it’s important to note that airfare search technology, even when it combines airlines together for cheaper flights, may not be your best option. With these new changes, it’s even more important to note that there are other ways to find good airfares – like these 6 tips to find the cheapest flights. These may be more important than ever now.

3. Travel agents may become popular again – Travel agents have always been an important part of the travel industry. Even with the rise of technology, travel agents have still been viable and very helpful in finding great deals for travelers. If other airlines follow American and Delta, travel agents may be called upon to take on the work that travelers once did themselves on the internet. With international airports in Sacramento, San Francisco, and Oakland and the complicated process of booking travel, finding great deals will be harder and travel agents may grow in popularity once again.

Delta Air Lines to Introduce Nonstop Flights Between Detroit Metropolitan Airport and Sao Paulo

Delta Air Lines (Atlanta) announced plans to introduce the first-ever nonstop flights between its Detroit Metropolitan Airport hub and Sao Paulo.

Delta has requested authorization from the U.S. Department of Transportation (DOT) to introduce two weekly flights between Detroit and Sao Paulo beginning November 4, 2010. Delta already holds certain rights to operate Sao Paulo service, but requires DOT permission to fly from Detroit. The airline would operate the flights using 216-seat Boeing 767-300ER aircraft with 35 seats in BusinessElite and 181 seats in Economy Class.

Brazil would be the latest addition to a long list of new services introduced from Detroit since Delta’s merger with Northwest Airlines last year. Other planned or recently launched nonstop routes from Detroit include :
Read more

Next Page »