How the Airbus A380 Squeezes into the U.S. Airline Model

21 Mar

The two airlines already partner on A380 flights from Seoul to Los Angeles and New York and code-share on Korean A380 flights from Seoul to Hong Kong. Additionally, Air France A380 flights from Paris to New York and Washington Dulles are part of a trans-Atlantic joint venture with Delta. In each case, Delta and its partners take advantage of partnership models that barely existed when the A380 first flew in 2007, soon after its positive reception on its first New York visit.

The obvious question here is: Why would Delta ever want to order an A380? Its partners can operate the aircraft and Delta can get many of the benefits.

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Aviation consultant Robert Mann says that because U.S. law restricts foreign ownership of U.S. airlines (to 25% of voting shares and 33% of capital) immunized joint ventures and code-sharing, all within a global alliance, provide a default model for global carriers to pool their economic interests.

So far, the A380 serves five U.S. airports: New York Kennedy; San Francisco, Los Angeles, Washington Dulles; and Miami — all top international gateways. It is flown by seven airlines: Air France, Korean and China Southern, members of the Skyteam Alliance; Lufthansa and Singapore, members of Star; Qantas, a member of Oneworld; and Emirates.

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http://www.thestreet.com/story/11450450/1/how-the-airbus-a380-squeezes-into-t…

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