Friday, September 28, 2007

Delta's 'out of the way' international routes are paying off

Delta announced yesterday it would 14 new international routes (see below), including a number of destinations Reuters describes as "out of the way." The news agency cites Lagos, Nigeria; Dakar, Senegal; and Guatemala City as a few examples. But those types of destinations appear to be working well for Delta. Reuters writes Delta's "strategy of picking under-served international destinations has paid off; every international route launched last year has been profitable," Delta officials claim. "This is profitable and sustainable flying," says Delta CEO Richard Anderson.

TheStreet.com says "Delta is breaking the industry mold by adding underserved destinations." Delta executive vice president Glen Hauenstein tells publication he thinks rivals are following "the lemming theory" by adding tried-and-true destinations, which just means that "everybody flies to Brussels." But he says he thinks "the real value is in going to places that are difficult to get to," routes where Delta can make a quick impact on routes that previously required difficult layovers or multiple connections.

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