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Delta Equity Investment Deepens Ties With Partner Korean Air

  • Korean Air joint venture provides a strong platform for Delta growth, world-class customer benefits and revenue generation across one of the most comprehensive route networks in the trans-Pacific.
  • Delta has acquired a 4.3 percent equity stake in Hanjin-KAL.

Delta has acquired a 4.3 percent equity stake in Hanjin-KAL, the largest shareholder of Korean Air. The investment demonstrates Delta’s commitment to the success of its joint venture with Korean Air and the customer benefits, market positioning and growth opportunities the partnership enables. Delta intends to increase its equity stake to 10 percent over time, after receiving regulatory approval. 

“Together with the team at Korean Air, we have a vision to deliver the world’s leading trans-Pacific joint venture for our shared customers, offering the strongest network, the best service and the finest experience connecting the U.S. with Asia,” said Delta CEO Ed Bastian. “This is already one of our fastest-integrating and most successful partnerships, and experience tells us this investment will further strengthen our relationship as we continue to build on the value of the joint venture.”

Delta and Korean Air operate the industry’s most robust trans-Pacific joint venture, providing customers with seamless access to more than 290 destinations in the U.S. and over 80 destinations in Asia, including the partnership’s award-winning hub at Seoul-Incheon (ICN). 

Since launching in May 2018, Delta and Korean Air have strengthened cooperation by expanding joint operations in the trans-Pacific to include more than 1,400 codeshare flights, including connections throughout Asia and the U.S. Teams at both airlines have also worked closely together to provide the best travel experience for customers between the U.S. and Asia, integrate sales and marketing activities, and enhance loyalty program benefits, such as the ability to earn more miles on both loyalty programs and redeem them on a wider range of flights. Additionally, Korean Air and Delta have launched cargo cooperation across one of the most comprehensive route networks in the trans-Pacific market.

The partnership is contributing to Delta’s first year-over-year growth in the Asia Pacific region since 2012, with new service launched earlier this year between Minneapolis/St. Paul and Seoul, as well as Seattle and Osaka, operated in partnership with Korean Air. Additionally, Korean Air has launched new service linking Boston with Seoul.

The joint venture builds on nearly two decades of close partnership between Korean Air and Delta, both founding members of the SkyTeam airline alliance.

Delta is growing its international footprint and leveraging partnerships with key airlines in regions around the world, including through joint ventures and equity investments. These investments improve alignment between Delta and its partners, creating a more stable environment for growth amid an increasingly dynamic global landscape.

Delta & Aeromexico Celebrate Second Year of Key Partnership

Story by Sarah Lora

The two airlines have jointly transported more than 14.4 million passengers since the Joint Cooperation Agreement launched.

  • Highlights include introducing eight new routes and two new joint destinations in Mexico, strengthening the network’s power in the transborder market.
  • Airlines have eliminated 80% percent of the differences in service and standardized processes to create a seamless travel experience.

Since Delta Air Lines and Aeromexico departed together on a journey to pioneer the first transborder airline alliance between the U.S. and Mexico, more than 14.4 million passengers have benefitted from the carriers’ integration during the last two years.

Today, Delta and Aeromexico jointly offer more than 1,100 weekly flights on 64 routes between 11 cities in Mexico and 33 in the U.S. The Joint Cooperation Agreement has launched eight new routes and two new joint destinations in Mexico, and allowed terminal co-location in 12 airports in the U.S., 10 of which are Delta hubs, and three Aeromexico hubs in Mexico.

As seamless as checking in at a Delta terminal and boarding an Aeromexico plane, “our goal is creating a familiar travel experience with standards that are common across Delta and Aeromexico. This partnership and the integration of both airlines allow us to offer a more powerful network, more benefits and standard policies, which result in a seamless service,” said Nicolas Ferri, Delta’s Vice President— Latin America and Alliances Americas.

True to its word, the JCA has so far eliminated 80% of the differences in services and has standardized many processes, such as purchasing tickets online or benefitting from loyalty programs. On board, customers will find uniformity on Delta and Aeromexico cabins, seat selection and checked and carry-on baggage policies; parallel access to Gogo’s WiFi portal and free text messaging; as well as having Spanish-speaking crew members on all transborder flights.

“Although the integration of commercial processes, products, airports and sales teams has been a great challenge, communicating with a cohesive voice has facilitated that assimilation. While Delta and Aeromexico have distinct and unique looks, we respect each other and share the same vision: to provide the best of each to our customers,” said Paul Verhagen, Aeromexico’s Senior Vice President – International Sales.

Providing the best isn’t limited to the airport experience. From sponsoring the Mexican National Soccer Team to the Latin GRAMMY Acoustic Sessions in Miami, L.A. and Mexico City, Delta and Aeromexico are committed to supporting the communities they serve. The airlines aim to foster unity, diversity and to uphold corporate values through their sponsorships of a variety of sporting and cultural events in both Mexico and the United States.

“Such a historic alliance between two iconic airlines is about making travel between the two carriers easier for customers. By working together, we have shared and applied best practices and business solutions, bringing our individual strengths into the partnership,” added Ferri.

Delta and Aeromexico sales professionals have formed a fully integrated sales team dedicated to promoting both operators in the U.S. and Mexican markets. Routes have been increasingly added throughout the two years under the JCA, strengthening the power of the network in the transborder market.

Customers from Atlanta can enjoy nonstop access to nine cities in Mexico including Mexico City, Guadalajara and Monterrey. The JCA also operates direct flights from New York, Detroit, Minneapolis, Salt Lake City, Seattle, and Los Angeles to multiple business and leisure points in Mexico.

Connectivity is crucial to driving business and boosting the economy of both countries, while offering customers the possibility of discovering new experiences through Delta and Aeromexico’s distinctive service in the coming years.​

CP and Hapag-Lloyd Renew Long-Term Agreement

​Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) and Hapag-Lloyd AG (XETR: HLAG) (FWB : HLG) today announced an extension of their long-term agreement to the benefit of the international supply chain, the movement of cargo through the ports of Montreal and Vancouver, and the overall North American economy.

“We are incredibly proud to continue to work with Hapag-Lloyd,” said Keith Creel, CP President and CEO. “This long-term agreement is built on service, reliability and trust. On behalf of the 13,000-strong CP family, particularly those on the ground who ensure we provide exceptional service, we are excited to continue to work closely with Hapag-Lloyd as their preferred rail carrier in Canada.”

In close collaboration, the two companies have built a track record of reliable service on sea and on land for their customers. 

“Customers expect reliable supply chains, and in CP we have found a company that delivers consistently, every day,” said Rolf Habben Jansen, CEO of Hapag-Lloyd. “With CP we are able to handle more cargo and take advantage of shorter routes to key markets, and provide long-term value to our customers.”

The agreement will allow Hapag-Lloyd’s customers to benefit from CP’s growing network of transload facilities, its innovative live-lift operation at Portal, North Dakota, and the fastest transit times between Vancouver and the Twin Cities, Chicago and beyond.

From Vancouver and Montreal, CP connects its customers to markets across Canada and the United States. CP’s intermodal franchise has the lowest on-dock dwell and best on-time performance at the Port of Vancouver and Port of Montreal, ensuring faster end-to-end transits for shippers.

Note on forward-looking information

This news release contains certain forward-looking information and forward-looking statements (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as “financial expectations”, “key assumptions”, “anticipate”, “believe”, “expect”, “plan”, “will”, “outlook”, “should” or similar words suggesting future outcomes. This news release contains forward-looking information relating, but not limited to, the success of our business, our operations, priorities and plans, as well as anticipated financial and operational performance, including with respect to CP’s network of transload facilities and anticipated increases in cargo service.

Story and images from http://www.cpr.ca

IAG’s Aer Lingus Boss Stephen Kavanagh To Step Down

(Reuters) – International Airlines Group (IAG) (ICAG.L) said on Thursday that Aer Lingus chief executive Stephen Kavanagh will step down on Jan. 1, 2019 and will be succeeded by Sean Doyle, a British Airways director.

Kavanagh, who will remain with Aer Lingus as a non-executive director, is stepping down to pursue other interests, after a career that spanned over three decades at the Irish airline, with the last four in the top job.

IAG Chief Executive Willie Walsh credited Kavanagh with modernizing Aer Lingus, the flag carrier of Ireland founded by the government in 1936.

Doyle, who hails from Cork, Ireland, is also the director of network, fleet and alliances at IAG-owned British Airways.

IAG also said Mike Rutter, chief operating officer of Aer Lingus, has extended his contract with the airline.

(Reporting by Shariq Khan in Bengaluru; Editing by Kirsten Donovan and Emelia Sithole-Matarise)

In other Aer Lingus news:

Meet Montreal and Minneapolis-St. Paul

Minnesota’s twin cities, Minneapolis-St. Paul, join Montreal, the largest city in Canada’s Québec province, as the latest additions to our expanding transatlantic network.

Ireland’s first direct Minneapolis-St. Paul service will operate daily from 8th July 2019, with fares from €249 each way, as part of a return trip.

Our new daily Montreal route will take off on 8th August 2019, with fares from €239 each way, as part of a return trip.

Sun Country Airlines Starts Rapid Expansion

Sun Country Airlines has started on its rapid expansion plan following its acquisition by funds affiliated with Apollo Global Management, LLC (NYSE: APO), which was announced last December. It’s starting flights to Florida out of the Dallas/Fort Worth Airport this week to both Fort Myers, beginning today, and to Tampa, beginning this Friday. Fares on both of these routes are starting out for as little as $39 and $49, each way. Sun Country has been operating out of the DFW Airport to Minneapolis/St. Paul since 2000. The airline also added DFW to Las Vegas flights earlier this year, in addition to its route to Cancun. Flights from dallas to Punta Cana, in the Dominican Republic, will begin this November.

However, there’s much more to Sun Country’s expansion than just Dallas!

For a complete list of all of Sun Country Airlines route expansions and other news, please click on the link below!

Sun Country Airline News

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