Hamilton said the A380 is most useful at congested international airports, such as London Heathrow and Tokyo Narita, with vast numbers of passengers and limited slot availability. Since both Delta and United serve both airports, either or both could be evaluating the aircraft, he said. Both carriers declined to comment on potential aircraft orders.
McAdoo said that over time, U.S. carriers have reduced their 747 use in favor of smaller aircraft like the 777. He said while the 747 is often used on flights to Narita, where passengers connect to points throughout Asia, newer, smaller aircraft including the 787 mean that those passengers, going forward, will be able to bypass Narita, reducing demand for the A380.
Filling A380s via Partnerships
Still, even today, U.S. carriers routinely sell tickets on the A380 and put their passengers on them, and five U.S. airports already have A380 service. To the extent that competitors could gain an advantage by achieving lower passenger costs on the A380, this is mitigated because many of A380 flights to the U.S. operate under joint ventures with U.S. partners.Delta, for instance, code shares on Korean A380 flights from Seoul to both Narita and Hong Kong; additionally, an Air France flight between Paris and Washington Dulles is part of the two carriers' transatlantic joint venture, with revenue split according to a formula established by the carriers. A curiosity of A380 usage so far is that some route selection is counter-intuitive. Instead of flying to partner United's hub in Chicago, Lufthansa flies to competitor American's hub in Miami. Instead of flying to partner Delta's hub in Atlanta, AirFrance flies to competitor United's hub at Dulles. Also, Air France flies a Paris/Montreal route, something few experts expected because Montreal is a relatively small city. Lufthansa spokesman Martin Riecken said it's probably a little early to draw conclusions on A380 usage. For Lufthansa, he said, "this is just the beginning -- we have taken delivery of seven out of 15
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV