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Delta Is Expanding Its Successful Porsche Car Service

Delta Air Lines

Delta Air Lines (IATA Airline Code – DL) started a trial partnership with Porsche to bring a selective group of passengers to their connecting flights in Atlanta International Airport (IATA Airport Code – ATL) in 2011. The trial was well received and it was expanded to Los Angeles International Airport (LAX), New York JFK International Airport (JFK) and Minneapolis – St. Paul Airport (MSP) in 2013.

Details

Below is the a little video from DL on the service:

http://www.youtube.com/watch?v=gDTYE5pd9rc

Currently, only a selected number of SkyMiles Diamond Medallion (TM) members get to enjoy this service.

For the next set of expansion, Delta has chosen Seattle-Tacoma International Airport (SEA) and New York LaGuardia International Airport (LGA).  Porsche service will begin in December 2014.

This will make it 7 airports in total that will have this service by the end of the year.

Delta Airlines announced that they will be expanding its successful car service for selected Diamond Medallion (TM) Members in December 2014.

Analysis

Delta Air Lines

After the December 2014 expansion, all major Delta US hubs would have implemented this service. Would DL consider expand this to its international hub in Tokyo Narita International Airport (NRT)?

Chances are that expansion to NRT as DL is shrinking rather than expanding its Pacific Operations (Refer to our discussion of Tokyo as a secondary hub for DL and United Airlines (UA) here).

For selective DL elite members, this is a perk that is very useful especially whenever they have very tight connections.  DL is continuing to build a competitive advantage at these cities using this program.

Other Competitors

What about the other competitors, are there other airlines offering this car services?

Domestically,  both United Airlines (UA) and American Airlines (AA) offer regular intra airport car service.

UA completed the roll out of its program in 2014 for selected MileagePlus Global Services (TM) members and United Global First passengers at Denver International Airport (DEN), Washington Dulles International Airport (IAD), San Francisco International Airport (SFO), Chicago O’Hare International Airport (ORD), George Bush Intercontinental Airport (IAH), New York/Newark Liberty International Airport (EWR) and LAX.  It is partnered with Mercedes-Benz for the service.  Guam International Airport (GUM) could be next on the list for UA though it may not have as many Global First passengers.

AA announced on October 7, 2014 that it is partnering with Cadillac to serve selected customers in LAX. It plans to expand the program to Dallas-Fort Worth International Airport (DFW), JFK and LGA before the end of the year pending approvals. It would not be surprising for AA to expand this service further to Miami International Airport (MIA) and ORD in the future as it has a large presence in these two airports.

Internationally, Emirates Airlines (EK), Etihad Airways (EY) and Lufthansa German Group (LH) are some of the international airlines who have this program implemented at their respective main hubs.

Final Call

The bar is set for airlines to offer a similar experience for their high spending passengers to streamline their travelling experience. The next level may be for these airlines to expand the service into non-hub cities.

Depending on its business case,  look for Delta to expand this service to be featured next at Salt Lake City (SLC).

 

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