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Los Angeles Gets More from Delta - Analyst Blog

Posted
3/7/2013 3:30:00 PM
By: Zacks.com
Referenced Stocks:AAMRQ;DAL;LUV;UAL

Close to the heels of announcing plans to solidify the footing in Brazil, Delta Air Lines ( DAL ) turned its attention to the U.S. film city - Los Angeles. The company intends to speed up the number of flights at the city's international airport with daily year-round and seasonal services.

Of the additional services, the company will land in eight new markets that include Nashville, Seattle, San Jose, Anchorage and Spokane. Expanded summer flights will be launched between Los Angeles and Oakland, Sacramento, Puerto Vallarta and New Orleans.

With services added to 14 destinations, Delta will control 12% of the airport's departures, coming next to United Continental Holdings Inc. ( UAL ) and American Airlines, a subsidiary of AMR Corporation ( AAMRQ ) that have 19% of services each. Dallas, Texas-based Southwest Airlines ( LUV ) dominates about 16% of the service at Los Angeles.

By summer, Delta aims to have 118 daily departures from Los Angeles, moving ahead of the last year's figure of 107. Services from the country's third-busiest airport will cover international stops in Sydney and Tokyo and provide customers the option to avail seats in first class or economy class, along with on-board Wi-Fi facility.

Los Angeles stands as a strong revenue generating avenue for Delta, owing to its position on the west coast of the U.S. The city - being a favorite destination for both business travelers and tourists all over the globe - enjoys a high demand.

Additionally, back in 2012, Della's co-location strategic partner - Alaska Airlines - started operations in Los Angeles International Airport's Terminal 6. This association is expected to benefit customers of both the airlines by providing shorter connecting times between Delta's operations at Terminal 5 and 6. Jet-setters will also be open to more international, transcontinental and West Coast travel options.

Apart from Alaska Airlines, Delta shares agreements with many domestic and key international players plus other Sky Team partners. In the days ahead, Delta plans to shake hands with Virgin Atlantic Airways to start flights on a codesharing basis from Los Angeles to Heathrow airport in London. These collaborations will also work in favor of the passengers taking off from Los Angeles.

Currently, Delta has a Zacks Rank #2 (Buy).



AMR CORP (AAMRQ): Free Stock Analysis Report

DELTA AIR LINES (DAL): Free Stock Analysis Report

SOUTHWEST AIR (LUV): Free Stock Analysis Report

UNITED CONT HLD (UAL): Free Stock Analysis Report

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