Delta Airline Looking To Expand Its Flight Operations

Delta Air Lines CEO Ed Bastian is looking to expand the airline’s flight operations through partnerships with other carriers

Ed Bastian, President at Delta Air Lines Inc. told reporters on the meeting of International Air Transport Association yesterday that it plans to increase its flight operations via code sharing and partnership agreements. Mr. Bastian also said that latest flight destination will involve Brazil, South Korea, Japan and Mexico.

Delta is not the lone airline looking to expand its operations, as in the similar meeting American Airline shared same plans. Individual close to the matter informed Reuters that Delta would be interested to capitalize its investment in Skymark Airlines –a Japan bankrupt airline. However, Bastian didn’t remark on the situation.

Skymark Airline of Japan went bankrupt and was not able to make lease payments for the aircraft, Intrepid Aviation limited. Therefore, Intrepid Aviation is currently seeking for sponsors to put money in Skymark, in spite of bid of Holding Inc. to buy the airline. Seemingly, Skymark embraces definite prospective for Delta, as it will permit access to several Asia parts via its hub, where it is consistently facing rough competition.

Ed Bastian also talked about the new opposition from Southwest Airlines in enduring its flight operations at Dallas Airport, where the company’s contract is expiring soon. Southwest is stopping Delta from increasing its contract to sustain monopoly at Dallas Airport.

Keeping in mind the latest Southwest Airlines opposition, Delta is keenly looking to increase its operations. The airline is in contact with Korean airlines to restore its flight operations, which got suspended after the acquisition of Northwest by Delta. He also said that his firm is working extremely hard to reorganize the partnership.

Likewise, Ed Bastian also pointed out the company’s partnership contract with Aeromexico declared last month. Delta Airlines will be launching latest flights to different parts of Mexico, according to the deal. Delta has also bought around 7% shares of Aeromexico leading to a 17% ownership. Mr. Bastian remarked that the firm is focusing to imitate a same partnership as Delta has with Virgin Atlantic, in which Delta holds around 49% of shares.

Recently, the company has been evaluated by one of its competitor, Jet Blue Airways Corp. which accused the company of controlling the flight fares through immunized antitrust contracts. The rival company also wrote secretaries of State a letter and asked them to review the agreements.

Delta Airline stock was down 0.10% to $40.71 at market closes on Tuesday June 9 and decreased further by 0.07% to $40.68 during after hour session as of 7:45 PM EDT.