Delta’s dawn: Giant US airline about to touchdown in NZ and shake-up the market

Delta Air Lines will tomorrow be the latest airline to fly into Auckland and the giant carrier is already shaking up the transpacific market.

The airline is one of the biggest in the world
and will fly between Los Angeles and Auckland daily during summer and three times a week in late March to late October.

Tomorrow’s flight, DL65, is due to arrive at 7.55am and already Delta has had an impact on the market.

After early this year announcing it would debut in this market, rival United States carriers United Airlines and American Airlines announced seasonal services between Los Angeles in addition to other services between New Zealand and the US.

Prices have also fallen. Limited, promotional fares on Delta through Helloworld have been advertised for $1399 return, hundreds of dollars below fares that have been for sale on the route.

Capacity into Los Angeles is soaring. Cirium data from Auckland firm Eagle Aviation Consulting shows there are 11 more flights from Los Angeles (LAX) per week this summer compared to the same time a year ago and seats have doubled to 6821.

Air New Zealand has services between Auckland and the US, as the airline flies to Chicago, Honolulu, Houston, Los Angeles, New York, and San Francisco.

Qantas has stepped up non-stop flights between Auckland and New York to four times a week.

Overall capacity between Auckland and North America is 30 per cent higher this summer than immediately before the pandemic.

Victoria Courtney, managing director of Flight Centre Travel Group NZ said the arrival of Delta was exciting.

Increased airline capacity to LAX and the rest of North America was being driven by inbound demand from American customers, although it also provides Kiwis with great options for exploring the US.

“We are confident we will see booking numbers increase from Auckland to LAX as more competitive pricing is now likely. This is great news for Kiwis keen to head to the US for either leisure or business.”

Courtney said business travellers were booking in high numbers under its Corporate Traveller and FCM brands to LAX, especially those in the IT industry. Delta carries up to 200 million passengers a year. It has more than 90,000, staff, and 4000 daily flights to more than 275 destinations on six continents.

It is headquartered in Atlanta where it flies from Atlanta Hartsfield-Jackson International Airport.

Delta operates significant hubs and key markets in Amsterdam, Boston, Detroit, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Seattle, Seoul-Incheon and Tokyo. Through LAX, it operates more than 150 daily flights and to more than 50 destinations around the world.

Eagle Aviation Consulting managing director Simon Russell said the entry of such a large, well-connected airline was a game changer for the New Zealand market, especially given Delta’s connections out of Atlanta – the world’s busiest airport.

“It’s brilliant. It offers New Zealanders Sky Team alliance connections into the Americas and Europe. New Zealand’s got another incredible airline alliance offering.”

Delta’s decision to go daily on the Auckland-Los Angeles route was “huge” and this gave the airline the opportunity to chase up to 20 per cent of market share.

Russell said Delta would “price its way into the market” and the added competition was great for Kiwis and inbound tourists who were taking advantage of a favourable exchange rate.

Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.