Delta and Korean move to deepen trans-Pac ties
By Steve Creedy Tue Mar 28, 2017
Delta Air Lines and Korean Air are the latest carriers to propose a trans-Pacific alliance that will allow them to share costs and revenues as well as coordinate schedules.
The airlines have signed a memorandum of understanding to implement a joint venture arrangement that would give their customers have access to a combined network serving more than 290 destinations.
They argue that the deal, which is still subject to regulatory approval, would increase travel choices and boost competition between the US and Asia.
The deal would see reciprocal frequent flyer benefits in which customers of both airlines would have the ability to earn and redeem miles on Delta’s Sky Miles and Korean Air’s SKYPASS programs.
It would see expanded codesharing, joint growth in the trans-Pacific market and the co-location of services at key hubs. Delta plans to launch a non-stop Atlanta-Seoul service this year to complement Korean’s existing service.
"This agreement deepens our longstanding partnership with Korean Air and will provide the global access and seamless service our customers demand," Delta chief executive Ed Bastian said in a statement. "We look forward to providing customers of both carriers with industry-leading service between the U.S. and Asia.”
Korean said it would continue to expand US-Korea network this summer with the introduction of a third return service between Los Angeles and Seoul as well as a second flight between the South Korean capital and San Francisco.
“This joint venture will benefit our customers by providing more convenient connection schedules and widen their opportunities in earning mileages,” Korean Air chief executive Yang Ho Cho said. “With this agreement, we will reinforce Incheon airport’s position as a major international hub in North East Asia and support the growth of Korea’s aviation industry.”
These kinds of alliances are becoming more common across the Pacific.
Delta already has an alliance with Virgin Australia and American Airlines this week agreed to buy a $US200m stake in China Southern Airlines that involves codesharing.
American and Qantas are also trying to resurrect a trans-Pacific alliance that was rejected by US regulators.
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