SkyTeam lost its largest mainland China airline this week. China Southern announced it will quit the alliance in 2019. The non-renewal of the membership contract will see the carrier transition out of its alliance relationships in the coming year. This is not a hard stop of relations; rather, the changes are likely to roll out over time. It is also not a surprise.
China Eastern
United Airlines wants more Shanghai, hindering American’s China plans
United Airlines joined Delta Air Lines in seeking additional service to Shanghai. The move puts American Airlines in a bind as that carrier hoped to squat on route authorities that are now in demand by the competition.
Delta to launch Minneapolis-Shanghai service in 2020
Delta Air Lines intends to serve Shanghai from its hub at Minneapolis-St. Paul, growing the connecting opportunities between the USA and China. The carrier applied for the necessary route authorities this morning, seeking to launch daily service in June 2020 on the A350-900. The new route would bring to three the number of Asia destinations served from MSP.
Delta invests in China Eastern
Delta’s sphere of influence over other global airlines continues to grow. The latest move is a 3.55% stake in China Eastern. It provides Delta a leg up towards future joint venture operations, should Open Skies come to pass but is not without some interesting quirks.