Delta to exit Tokyo Narita

[reader]

From MSN

A few months ago, Delta Air Lines (NYSE: DAL) received tentative approval to dramatically expand its flight schedule at Tokyo's Haneda International Airport next year. As expected, the airline is taking this opportunity to consolidate all of its Tokyo flights at Haneda, the airport closest to the city center. Last week, Delta confirmed that it plans to shut down its hub at Narita International Airport after more than four decades of service.

As part of this restructuring, Delta will stop flying to Singapore as of Sept. 22. From then on, it will rely on joint venture partner Korean Air for getting customers to Singapore. These moves should drive strong unit revenue growth for Delta Air Lines in Asia next year.

However, beginning in late March of 2020, U.S. airlines will be permitted to operate up to 18 daily round trips at Haneda Airport, three times the number of flights allowed today. Delta Air Lines received 5 of the 12 extra available route authorities, largely because its lack of a joint venture partner in Japan has put it at a disadvantage there. This will allow it to shift all of its flights between Tokyo and the U.S. to Haneda Airport.

Delta's flights from Narita Airport to Singapore and Manila have become collateral damage from its move to consolidate Tokyo operations at Haneda Airport. The carrier doesn't have the slots it would need to fly to those destinations from Haneda.

Somewhat surprisingly, Delta plans to keep flying to Manila, with new one-stop service from the U.S. via Seoul's Incheon Airport. It will end service to Singapore, though. That will be the second major Asian business destination to lose Delta service in the span of a year. The airline stopped flying to Hong Kong last fall.

However, Delta Air Lines will likely resume service on its own aircraft to Singapore and Hong Kong before too long. A new international arrivals facility in Seattle is set to open next fall, with room to process 2,600 passengers per hour, up from the current facility's design capacity of 1,200 passengers per hour. That will enable Delta to resume its international growth in Seattle.

Skeptics might point out that Delta dropped its Seattle-Hong Kong flights last year due to underperformance. However, as the carrier expands its domestic capacity in Seattle over time, its international routes will be able to draw on more connecting traffic. Moreover, Delta's new, state-of-the-art wide-bodies have lower unit costs than the planes it used to operate on routes to Asia. They are also equipped with premium economy sections and have personal suites in the business-class cabin, supporting higher unit-revenue production.

https://www.msn.com/en-us/travel/news/delta-is-dropping-singapore-flights-as-it-pursues-a-new-asia-strategy/ar-AAFr4Kv

[PeterRS]

I cant see that connecting through Seoul will make life any more difficult for passengers flying on to Hong Kong or Singapore. It might add an hour or so to the total time but not much more. My concern is that Haneda will become even more packed.