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Old 07-25-2012 | 07:08 PM
  #106162  
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flyallnite
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From: Stay THIRSTY, my friends!
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Originally Posted by 76drvr
When were you "sold" the code share agreement with DALPA?

I believe it was around 1998. DALPA put out a lot of information regarding the benefits of code sharing. It was pursuant to the DL/AM application to codeshare across each others domestic networks. If I recall correctly, DL needed approval from the MEC.

DAL has been code sharing with Aeromexico for years.

Not saying it's been a bad thing. On the contrary, I think it has been mostly beneficial. My concern is where it's headed.

I share your concern with international code sharing and joint ventures. That's one of the reasons I voted in favor of this latest TA. It tightened international code sharing and established first of a kind global joint venture protections.

I guess we are going to get a chance to test it out.

Since code sharing with Aeromexico is not a joint venture, and we don't have anti trust immunity, I'm not sure if your claim that we are coordinating scheduling is correct.

While it's true we don't have a JV agreement, it's clear that there is a great deal of coordination going on at the sales level, and sales drives scheduling. See below:




9/09/2011 @ 10:32AM |315 views

Delta Deal With Aeromexico Helps Give DAL Stock Lift To $9


What does the proposed agreement entail?
The agreement enables network-wide codesharing for both Delta and Aeromexico flights between the U.S. and Mexico as well as flights within the carriers’ domestic networks and to other key international destinations.
The cooperation further includes setting up a coordinated sales team, reciprocal benefits for elite-level loyalty program members and a $65 million investment by Delta in Aeromexico. The investment once approved by the Mexican regulators would give Delta a ~3.6% stake in Grupo Aeromexico and a seat on its board of directors.


Also, isn't Aeromexico a prorate code share agreement. How is it that Delta is deriving revenue from a passenger on Aeromexico who never touches Delta metal or flies through one of our hubs?


It is indeed. My point though is that we don't gain any flow across our system from their passengers if they can bypass our system and our metal. Worse yet, we may actually be feeding THEM our international passengers in some markets.

Bottom line, I'm not against the code share. I am concerned that they are ordering new shiny hub bypassing widebodies, after giving them 65 million dollars, and we aren't ordering any new international metal. All we seem to be doing is gradually closing international stations and slowly reducing our block hours and pilot head count. The two together are not something I'd like to see.