Industry Update and Commentary 1Jun01
- Industry Update and Commentary 1Jun01A VERY VERY VERY smart move on the part of Delta. They will be adding a pair of Oakland-Atlanta trips. This is smart for a number of reasons. Oakland has been a major city for African-American business interests, but yet there has NEVER been a flight between OAK and ATL(another Black business center).Whereas businesses in general have realized the value of "ethnic marketing", most of the executives in our industry don't have a clue. This recognition of a much-needed route will score some major points for Delta among the Black Business community.Additionally, Oakland has been taken lightly by most carriers(save for Southwest),and being regarded as being the "ugly stepsister" of San Francisco. In reality, the status of OAK should be on the level of Newark, considering the population of the East Bay---but it isn't. Really and truly, the East Bay is the "New Jersey of San Francisco", in this context.With OAK-ATL, this scores points with the East Bay in general, and may pull some of the business away from the other carriers at OAK, now having more options. [Delta currently flies to Salt Lake, Dallas, and Reno, from OAK.]Delta's ATL hub does have international service competitive with United's Chicago, and American's Dallas connections to basic European cities, such as LHR/FRA/CDG. However, for the Carribean, Southern Europe, Florida, and Latin America---Delta's connection bank is far superior to AA/DFW and UA/ORD. Not only will this give UA some problems, but AA will have even worse problems dealing with it.It should be interesting to see if the load factor on our flight 98 changes, in wake of the new Delta service. And the 757s Delta is using are far superior to the smaller Airbuses United has on this route---on both reliability and capacity.German Government minister Hans-Dietrich Genscher is now handling the mediation between Lufthansa and its pilots union. Both parties have taken a break, but expect to meet with Herr Genscher soon.National Airlines is talking to Carl Icahn for a stock sale of the company. [Major mistake, here.]San Jose city councilman Ken Yeager has been getting on Mexicana's case for not signing the letter of compliance, concerning the noise curfews at SJC. Mexicana responded that they have been singled out, as there are at least eight other carriers that have not signed this letter of compliance. In the meantime, MX will continue to have its 1045pm departure to Guadalajara from SJC.