This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Delta Moves Again to Grow in New York, Boosts London Access

Stocks in this article: AAMRQ.PK DAL LCC

"This announcement is primarily about New York, and about helping Delta to increase its utility to the business traveler," said Henry Harteveldt, analyst for New York-based travel consultant Hudson Crossing. "But it's not all about New York. Once Delta and Virgin get everything put together, Delta can put its brand on Virgin Atlantic flights out of Boston, Miami, Los Angeles and the other cities, all strategically important markets for Delta, either because they are hubs for Skyteam, as LAX is, or because they are dominated by other alliances like Oneworld in Miami and Star in San Francisco."

At Miami International, for instance, it is tough for Delta to establish a presence, Harteveldt said, because it already serves every major Florida city through Atlanta. But having Virgin Atlantic fill much of its airplane at its London hub means Delta would be able to provide a non-stop London flight to its passengers who originate in South Florida. In Los Angeles, meanwhile, Delta already has a presence, but it has lacked non-stop London service. "This will make Delta that much more competitive," Harteveldt said.

In December, Delta announced it had purchased 49% of Virgin Atlantic from Singapore Airlines. On a conference call with reporters on Monday, Bastian said Delta has long had an interest in Virgin Atlantic. Asked why it took years to put a deal together, he responded, "As between us and Singapore, (negotiations over) the value of the shares is what led to the length of the negotiations."

Speaking at the March investor conference, Bastian said Delta's New York buildup is feeding revenue gains. He said Delta has gained over seven points of corporate market share in New York over the past three years, leading to a margin gain of more than 300 basis points in New York. "We're still in the building phase," he said.

The carrier has boosted its capacity at LaGuardia Airport by 45% over the past year, a result of an asset trade with US Airways. (LCC). But access to Heathrow remained "our single biggest challenge in corporate customer negotiations" in New York, Bastian said. According to statistics compiled by Delta, Kennedy/Heathrow is the No. 1 U.S. international route, accounting for 2.7 million passengers a year. It dwarfs every other international route. No. 2 is Los Angeles/Heathrow, accounting for 1.4 million passengers. The next three routes, with 1.2 million passengers annually, are Chicago/Heathrow, New York/Paris and Newark/Heathrow. The Virgin deal adds capacity in three of those four.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs