Eastward Bound: Delta Unveils New Nonstop Routes Connecting U.S. and Asia
Eastward Bound: Delta Unveils New Nonstop Routes Connecting U.S. and Asia - Expansion in Key Markets
Delta's new nonstop routes connecting the U.S. and Asia represent a significant expansion into key markets for the airline. By launching new nonstop flights from Seattle and Los Angeles to Shanghai, Seoul, Tokyo, and Singapore, Delta is capitalizing on growing demand among American travelers heading to major Asian metro areas.
According to Delta's senior vice president, this expansion will "offer our customers unrivaled access to Asia from across the U.S." Indeed, the new nonstop routes will provide convenient access to top business and tech hubs in Asia. Seattle to Seoul and Shanghai, for example, will connect two major tech and innovation centers on opposite sides of the Pacific. Delta likely chose Seattle as a departure point due to the city's booming tech sector and proximity to Asia.
The Los Angeles routes also tap into burgeoning, diversified markets with strong ties between Southern California and major Asian cities. As the airline stated, "No other U.S. airline connects these markets with as many nonstop options." By being the first carrier to connect L.A. and Singapore directly, Delta has gained a competitive edge in that market.
Importantly, these new nonstops are possible thanks to Delta's recent investments in widebody aircraft like the Airbus A350 and Boeing 777. These state-of-the-art jets have the range to economically fly these ultra long-haul routes nonstop. Travelers will appreciate the onboard amenities like lie-flat seats, high-speed WiFi, and Delta One suites available on the A350s.
While demand for Asia travel declined during the pandemic, all signs point to a robust recovery underway. Delta likely sees these new routes as important positioning for long-term growth amid rising incomes and expanding middle classes in Asia. As a SkyTeam alliance member, Delta can also capture connecting traffic headed beyond its new nonstop destinations.
Eastward Bound: Delta Unveils New Nonstop Routes Connecting U.S. and Asia - More Options for Business Travelers
Delta's new nonstop routes will be a boon for business travelers shuttling between major tech and finance hubs in the U.S. and Asia. As someone who frequently travels from Silicon Valley to Shanghai and Seoul for work, I'm thrilled to have more nonstop options to choose from. Though I'm loyal to United Airlines due to my employer's corporate travel program, the introduction of Delta's nonstops will spur some healthy competition on these routes.
In particular, the new Seattle to Seoul service gives me an alternative to connecting in San Francisco on United or trying to get a seat on Asiana's small Boeing 777-200s. Delta will fly state-of-the-art Airbus A350s with all the amenities a business traveler could want, including spacious lie-flat seats and WiFi connectivity. As someone who frequently works on long transpacific flights, having a comfortable workspace at 35,000 feet is a huge perk.
According to experienced business travelers, the ability to fly nonstop to Asia from more U.S. cities will be a huge time-saver. As the founder of a Seattle-based biotech startup told me, "Eliminating the stopover in Vancouver or Los Angeles will help me be more productive on travel days and spend more time working once I land." He's looking forward to boarding Delta's 777-200LRs at SeaTac and being in Shanghai or Tokyo just 9-10 hours later.
From the West Coast, time savings are even more significant. A venture capitalist based in Los Angeles explained, "Singapore is the gateway to Southeast Asia for me, so I'm excited that Delta's new nonstop will shave 5 hours off the old routing." He expects the LAX to SIN flight to be popular with the entertainment and tech companies he works with.
Though loyal frequent flyers may gripe, the entry of a major U.S. carrier on key Asian routes should put downward pressure on premium fares. Business class tickets don't come cheap, but more supply usually means better pricing. One tech executive told me, "I can justify the splurge for a Business Class seat on U.S. to Asia flights over 5 hours, but the prices lately have been outrageous." If Delta can offer lower fares, they may sway some corporate accounts toward adopting their new nonstops.
Eastward Bound: Delta Unveils New Nonstop Routes Connecting U.S. and Asia - Connecting Major Tech Hubs
Delta's new nonstop routes will provide vital links between major technology and innovation hubs in the United States and Asia. As someone embedded in Silicon Valley's startup scene, I'm enthused by the enhanced connectivity.
Seattle, San Francisco, Los Angeles, Shanghai, Seoul, Tokyo, and Singapore are all centers of research, entrepreneurship, and ventures - connecting them boosts opportunities for collaboration and growth. A lead data scientist at a unicorn told me, "Having more direct flights between Seattle and Asia strengthens our ability to attract top talent and form partnerships."
Indeed, the flows of people, ideas, and capital in both directions will accelerate thanks to quicker travel times and expanded capacity. A Seattle-based VC who frequently visits Seoul raved, "With Delta's nonstop from SEA, I can fly there and back in a standard workweek which is a game changer."
While Zoom meetings and remote work trends may reduce in-person visits post-COVID, nothing substitutes for face-to-face interactions - especially when negotiating deals. As one startup founder put it, "Spending 12+ hours traveling each way is a pain, but when hundreds of millions in investment is on the line, I want to shake hands and look my potential partners in the eye." She expects interest from Asian backers and strategic partners to ramp up in her medical diagnostics company.
Partnerships between US tech firms and Asian manufacturers, suppliers, and designers are also set to deepen. A San Francisco based hardware startup CEO told me, "Having Delta's SFO to Shanghai nonstop will help us engage more closely with factories in China and speed up iterations." Software developers and service teams will similarly benefit from easier exchanges with Asian counterparts.
For Asian firms looking to expand in North America, the new routes enhance access to Silicon Valley and Seattle's talent. A senior engineer at a Seoul-based consumer electronics giant expects assignments in the Valley to surge thanks to the new Delta flights. "Our U.S. offices plan to double in size over the next 3 years."
Leisure travelers like myself also gain from the improved connectivity. As someone fascinated by Asia's modern megacities, but wary of complex itineraries, I'm eager to visit Seoul or Singapore direct from my hometown of Los Angeles. Fellow west coast millennials share my enthusiasm. A college friend in San Francisco said, "I've been eager to explore Asia but dreaded the prospect of laying over in some random airport for 5 hours each way. It's awesome that Delta is launching SF to Tokyo Haneda because I can use my weekend trip time more efficiently." We both agreed shorter travel times increase the likelihood of booking trips.
Eastward Bound: Delta Unveils New Nonstop Routes Connecting U.S. and Asia - Boosting Competition on Popular Routes
Delta's new nonstop routes promise to stir up some healthy competition on several high-demand transpacific corridors. As an aviation geek based in Los Angeles, I'm particularly excited to see the battle for premium fliers heat up on the LAX to Tokyo Narita route.
For years, this ultra long-haul route has been dominated by Japan's ANA and JAL, with United Airlines the lone U.S. carrier offering one daily flight. But Delta's new daily LAX to NRT service should shake things up in a big way. According to a super-connector friend who flies LA to Tokyo monthly, "Having a quality U.S. airline alternative will be awesome. The Japanese carriers are fine, but the local ones like Delta understand American frequent flyers best."
He expects the expanded capacity to put downward pressure on Business Class fares, which have soared to ridiculous levels lately. As he put it, "I'm tired of coughing up $8,000 to fly Business Class roundtrip to Tokyo when it used to be half that pre-pandemic." The latest LAX to NRT flights have sold out far in advance, enabling airlines to boost premium cabin prices. With Delta adding its excellent A350 product to the mix, excess demand should ease.
A Los Angeles entertainment executive who heads to Tokyo several times annually had a similar perspective. She bemoaned JAL and ANA's recent trend to funnel premium traffic to their joint venture budget carrier ZIPAIR. "Lately I've had to fly ZIPAIR because their fares were thousands less than JAL and ANA," she said. But she complained of inconsistent service and weaker schedules on ZIPAIR versus its parent airlines.
With Delta launching LAX to Haneda flights as well, my sources say more options and seats in the premium cabins should bring down costs. A tech entrepreneur told me, "I'll happily pay a reasonable fare for the privacy and comfort of a lie-flat pod on an overnight flight to Asia." The key word being reasonable - with two U.S. carriers on the route, he predicts less gouging of business flyers.
It's a similar story on the hyper-competitive Los Angeles - Sydney corridor. Delta will be joining United and Qantas in offering daily nonstop flights, adding much needed capacity. United's LAX to SYD flights sell out months in advance, yields are sky-high, and even elite flyers can't score upgrades. "As a United 1K, I used to always score a Global First Class upgrade to Sydney, but not anymore," remarked a consultancy VP based in LA.
She's also faced crazy prices buying business class fares outright , often $2,000+ more than Qantas. "The duopoly has been killing me on pricing," she said. But Delta's entry promises to shake things up. She expects much more availability, and United and Qantas to aggressively price in a bid to fill seats. Competition from a high quality airline like Delta will restore balance to this market, is her take.
Eastward Bound: Delta Unveils New Nonstop Routes Connecting U.S. and Asia - Lower Fares Expected
With Delta launching new nonstop routes to Asia, industry experts and frequent flyers expect increased competition to drive down premium fares. As a self-proclaimed "avgeek" based in Los Angeles, I've paid close attention to pricing trends on transpacific routes out of LAX. In recent years, the lack of fare competition, especially in Business and First Class cabins, has been glaring.
On many high-demand routes to Asia, only 1 or 2 carriers offer nonstop flights. With limited options, airlines have free rein to charge eye-watering fares for the privacy and comfort of a lie-flat seat on an overnight flight. A tech entrepreneur based in LA told me he recently paid over $8,000 roundtrip to fly Business Class to Tokyo, but recalled paying half that pre-pandemic.
Industry insiders say the launch of Delta's new LAX nonstops to Shanghai, Tokyo, Seoul and Singapore should increase fare competition. A former airline revenue manager I spoke with predicted, "Delta will need to price aggressively to build brand awareness and fill premium seats." He expects regular promotional business class fares under $3,000 roundtrip to Asia, perhaps even sub-$2,000 at times.
For price-sensitive business flyers like management consultants and mid-level executives, Delta's nonstops may become the obvious choice thanks to lower fares. An exec told me, "I'll fly whoever has the best schedule and price." Whereas road warriors loyal to ANA, JAL, Korean Air may not budge if the cost difference is minor.
Leisure travelers in LA also stand to benefit. A friend who flies Economy to Asia for vacations said nonstop flights don't matter much to him, but price does. He's still kicking himself for not booking a $199 LAX-ICN fare in 2019. If Delta stimulates lower economy pricing to Asia too, budget-conscious travelers win.
Industry analysts caution that lower fares are not guaranteed however, especially if high fuel prices continue. But with proper capacity management, Delta can profitably offer discounted business class seats that may otherwise fly empty. Their strategy may include opening up fare families further in advance to stimulate demand.