Consistent with the company's expansion spree
Delta Air Lines
), is contemplating the addition of new flights between the U.S.
and Brazil. The company is reportedly seeking approval from the
U.S. Department of Transportation for non-stop flights form New
York and Atlanta to Sao Paulo.
Upon approval, the company targets to begin flights in 2013.
We believe these initiatives will not only generate more revenues
but also poise Delta in a competitive position within the airline
For Delta, Brazil represents a significant market in Latin
America as it is a popular destination for business travelers.
The company already operates 35 nonstop weekly flights between
Brazil and the U.S. from Atlanta, Detroit and New York to Sao
Paulo, and from Atlanta to Rio de Janeiro and Brasilia.
Delta's decision to further raise the number of flights
operating between the U.S. and Brazil emphasizes the growing
market demand between these routes.
Besides the company's strong foothold in Latin America, Delta
Air Lines and Alaska Airlines are increasing international
services and enhancing customer satisfaction in the West Coast.
This move will take the airline services closer to serving the
key markets in Asia as well as benefit flyers in the Pacific
Delta also targets enhancing its services at Charles de Gaulle
Airport in Paris in mid 2013 by bringing in more flights from 11
destinations in the U.S. Internationally, the expanded deals with
China Eastern and China Southern are paying off. We believe that
the company's global network and its hub structure, as well as
alliances with other airlines will enable it to offer customers a
relatively better global reach.
Apart from expanding overseas, the company is also taking
adequate measures to remain competitive in the domestic market.
Last month, Delta announced plans to start 2 flights from
Theodore Roosevelt Regional Airport in Dickinson, North Dakota to
Minneapolis-St. Paul International Airport, every day. The
service - slated to come into effect from June 10 - will be
rendered by Delta Connection's carrier SkyWest Airlines via
50-seat CRJ-200 regional jets.
We believe that the company's expansion along with enhanced
service offerings will position it advantageously compared to
other players like
United Continental Holdings, Inc.
Currently, Delta has a Zacks #2 Rank (Buy).
Other stocks in this sector we see as worth considering are
Deutsche Lufthansa Aktiengesellschaft
). Both carry a Zacks Rank #1 (Strong Buy).
AMR CORP (AAMRQ): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis
LUFTHANSA -ADR (DLAKY): Get Free Report
UNITED CONT HLD (UAL): Free Stock Analysis
To read this article on Zacks.com click here.