Comments on: United Sells Delta Its Route from New York to London…Sort Of http://boardingarea.com/blogs/onlinetravelreview/2006/07/31/united-sells-delta-its-route-from-new-york-to-londonsort-of/ The Daily Airline News by Jared Blank Mon, 01 Dec 2008 23:23:29 +0000 http://wordpress.org/?v=2.5.1 By: iahphx http://boardingarea.com/blogs/onlinetravelreview/2006/07/31/united-sells-delta-its-route-from-new-york-to-londonsort-of/#comment-643 iahphx Mon, 31 Jul 2006 21:36:57 +0000 http://boardingarea.com/blogs/onlinetravelreview/2006/07/31/united-sells-delta-its-route-from-new-york-to-londonsort-of/#comment-643 Yeah, it's hard for me to see how this route to Gatwick could be worth $21 million. While I certainly understand Delta's desire to serve London from their expanding JFK base, I'd be surprised if they can recoup their investment in any reasonable period of time. As you note, there's plenty of competition already, and Delta will be burdened by flying to less desirable Gatwick. FWIW, I'm sure the Brits will have no problem with this transaction because it further cements the LHR monopoly. But I'd look for CO to file some sort of petition demanding that UA's LHR rights be transferred to THEM. Not sure of the legalities, but it's not an entirely illogical argument, as there will now be only 1 US airline (AA) serving LHR from NYC. Yeah, it’s hard for me to see how this route to Gatwick could be worth $21 million. While I certainly understand Delta’s desire to serve London from their expanding JFK base, I’d be surprised if they can recoup their investment in any reasonable period of time. As you note, there’s plenty of competition already, and Delta will be burdened by flying to less desirable Gatwick.

FWIW, I’m sure the Brits will have no problem with this transaction because it further cements the LHR monopoly. But I’d look for CO to file some sort of petition demanding that UA’s LHR rights be transferred to THEM. Not sure of the legalities, but it’s not an entirely illogical argument, as there will now be only 1 US airline (AA) serving LHR from NYC.

]]>