US Markets
Friday, December 15th, 2023 3:06 pm EDT
Key Points
- Delta’s Strategic Expansion at Austin Airport: Delta Air Lines is making a significant move to expand its operations at Austin-Bergstrom International Airport, recognizing it as one of the fastest-growing airports in the country. The airline plans to introduce 11 new nonstop flights from Austin in April, increasing its daily flight count to nearly 50. This expansion is part of Delta’s strategic effort to gain a larger market share in Austin.
- New Destinations and Connecting Hub: Delta’s flight additions from Austin include destinations such as Midland-Odessa and McAllen in Texas, Raleigh-Durham in North Carolina, as well as Nashville and Cincinnati. Notably, Delta will now use Austin as a connecting point, marking a significant shift for the airline. Eric Beck, Delta’s Managing Director of Network Planning, highlighted that this is the first time Austin will serve as a connecting hub for Delta, emphasizing the airline’s recognition of Texas as an untapped opportunity on its network.
- Factors Driving Expansion Decision: The decision to expand in Austin is not attributed to a single company but is driven by the city’s rapid population growth and its appeal to major corporations, including Apple, Tesla, and IBM. Eric Beck clarified that the expansion is a response to increasing demand, with a focus on areas where corporate accounts are traveling that currently lack Delta’s service. McAllen and Midland, both featuring strong business communities and tourism attractions, were identified as key destinations for expansion, particularly due to Midland’s status as a base for the oil-rich Permian Basin.
Delta Air Lines is strategically expanding its operations at Austin-Bergstrom International Airport to capitalize on the airport’s rapid growth and gain market share. The airline plans to introduce 11 nonstop flights from Austin in April, increasing its peak-day flights to almost 50, a move aimed at tapping into the potential of one of the nation’s fastest-growing airports.
The newly added flights will connect Austin to various destinations, including Midland-Odessa and McAllen in Texas, Raleigh-Durham in North Carolina, Nashville, and Cincinnati. Notably, Delta plans to use Austin as a connecting point for the first time, allowing passengers to access the airline’s broader network. Eric Beck, Delta’s Managing Director of Network Planning, highlighted the significance of this expansion, stating that historically, Texas has been an untapped opportunity for Delta, and the decision to expand in Austin is driven by the city’s growth and its appeal to corporate accounts.
While Austin has experienced substantial population growth and attracted major investments from companies like Apple, Tesla, and IBM, Delta’s decision to expand is not attributed to a single company. Instead, the expansion is a response to the increasing demand observed in the region. McAllen and Midland were specifically chosen as new destinations due to their strong business communities and tourism attractions, making them strategic additions to Delta’s network.
Austin’s airport has been a key focus for Delta as it served over 7.1 million passengers in the previous year, marking an 11% increase from 2019 before the onset of the Covid-19 pandemic. In contrast, the overall passenger counts in the U.S. fell by 5% during the same period, emphasizing the resilience and growth of Austin’s aviation sector.
Delta currently holds a market share of nearly 14% at Austin, ranking behind Southwest Airlines with a 40% share and American Airlines with a 22% share, according to airport data from September. The expansion signifies Delta’s commitment to strengthening its presence in Austin and competing more aggressively with other major carriers in the region.
In summary, Delta’s strategic move to add nonstop flights and establish Austin as a connecting hub reflects the airline’s recognition of the growth potential in the region, driven by both corporate travel and tourism. The expansion aligns with Delta’s goal to fill service gaps and enhance its market share in Austin’s thriving aviation market.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/12/15/delta-beefs-up-austin-flights-in-battle-for-fast-growing-airport.html
