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OCTOBER 2018

Week 43

News

Delta announces Shanghai-Minneapolis

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October 26th 2018

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Delta Air Lines' Asia-Pacific expansion continues in full swing. Read More » After it announced Incheon-Minneapolis from April 1, the Atlanta headquartered carrier said this week it had applied for regulatory approval for Minneapolis-Shanghai, with A350s, from 2020.

"We are honored to be proposing the first-ever nonstop flight between Minneapolis-St. Paul and China as we continue to expand across the Pacific," said Delta CEO, Ed Bastian. "In addition to our Twin Cities customers, this route will benefit travelers across the U.S. by offering more competition and options to Shanghai thanks to our connecting hub at Minneapolis-St. Paul International Airport."

The Minneapolis to Seoul Incheon service will complement Delta's existing Minneapolis-Tokyo Haneda route. The airline re-launched Atlanta-Shanghai in July.

Commercial airline service between the U.S. and China is governed by agreements that limit the ability of U.S. and Mainland carriers to establish new flying between the two countries, but  there are available  U.S.-China routes that are not being utilised.

Delta’s proposal to the U.S. Department of Transportation (DOT) said it could offer travelers access to more than 70 destinations in China beyond Shanghai in cooperation with its local partners, China Eastern Airlines and Shanghai Airlines. In addition, Mainland customers would be able to connect to more than 100 U.S. destinations through a single, convenient connection at Delta's Minneapolis hub.

"Shanghai is the largest Asian market without a direct service from Minneapolis-St. Paul International Airport," said executive director and CEO of the Metropolitan Airports Commission, Brian Ryks. Delta acquired 3.5% of China Eastern in 2015 and has an observer seat on China Eastern's board.

In the last 18 months, Delta has renewed its focus on the Asia-Pacific. Aside from investing and deepening its ties with China Eastern, it has formed a trans-Pacific joint venture (JV) with its South Korean SkyTeam partner, Korean Air. The JV applies until 2028.

Delta and Korean Air have implemented full reciprocal code-sharing on each other’s networks. They also allow customers to earn miles on Korean Air’s SKYPASS and Delta’s SkyMiles; and operate joint sales and marketing initiatives. The JV facilitates increased belly cargo cooperation across the Pacific.

Earlier this year, Delta and Korean Air co-located to the new Terminal 2 at Incheon Airport, which reduced connecting times for customers. The combined network formed by the JV gives Delta and Korean Air passengers access to more than 290 destinations in the Americas and more than 80 in Asia.

Korean Air rival, Asiana Airlines, does not have a trans-Pacific joint venture with either Air Canada or United Airlines, its Star Alliance partners in North America.

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