Alaska Airlines has just announced much closer ties with Delta Airlines starting in 2009. It’s been widely rumored that this agreement will precede Delta’s plans to acquire Alaska. After this news announcement, Alaska’s stock went up 19 percent yesterday.
What I believe this agreement and a likely acquisition will mean to Hawaii-bound visitors:
- Delta will become a dominant Hawaii player with flights from hubs in Los Angeles, Salt Lake City, Portland, Seattle, Minneapolis, Anchorage, and San Francisco.
- Better travel options and connections for Delta customers transiting via the West Coast.
- More flights to be added to Hawaii through Alaska’s Portland and Seattle hubs.
- Further reduction in competition between the West Coast and Hawaii resulting in increased cost of travel to Hawaii.
- Delta may add wide-ranging connections through Hawaii to new markets in Asia.
- Look for Alaska’s code-share partners to change. In addition to Delta/Northwest, the current code-shares include American, Air France, British, Cathay Pacific, Continental, KLM, Lan Chile, and Qantas.
About the agreement:
The two carriers have signed an agreement in principle to become “preferred alliance partners” on the West Coast.
Delta’s CEO indicated:
- Alaska will participate in Delta’s new long-haul trans-Pacific and Latin American routes from the West Coast, with frequent flier and lounge reciprocity between the carriers.
- Delta and Alaska will offer customers more departures and capacity along the West Coast than any U.S. airline.
- Alaska is a perfect partner for Delta. Their leading presence across the west coast will be paired with Delta’s expansive international network. The end result is the growth of international air traffic from cities in the West.
Alaska CEO William Ayer added:
“Continuing to work with Delta – the world’s largest airline with the broadest global route system of any U.S. carrier – is a natural fit for Alaska and Horizon.”
