DELTA NONSTOP TO SHANGHAI: China closer than ever


The Atlanta Journal-Constitution
Published on: 03/31/08

A Delta Air Lines 777 will make history early today when it touches down in Shanghai at 1:45 a.m. Atlanta time, more than 15 hours after taking off from Hartsfield-Jackson International Airport.

It's Delta's first direct flight to China since the airline began boarding passengers 79 years ago and is the first direct flight to China from anywhere in the Southeast.

Delta Flight 19, as it is officially known, will trim hours off the grueling trip for business travelers trying to access the world's most populous country and fastest-growing economy. For many business travelers, it will mean no more layovers and transfers in New York or Seoul or Tokyo —- no more 20-hour-plus trips from point to point. It also underscores the Atlanta-based airline's push to become a major player on international routes.

"We are transforming Atlanta from a crossroads of domestic traffic to a crossroads of international traffic," said Glen Hauenstein, a Delta vice president and route specialist.

The Shanghai flight comes at a pivotal time in the airline industry, as carriers struggle with soaring fuel costs, declining stock prices and a weakening economy. It occurs as Delta, the nation's third largest carrier, attempts to increase its international footprint to take advantage of more lucrative international flights while downsizing unprofitable domestic routes.

The carrier, which is engaged in on-again, off-again merger talks with Northwest Airlines, now serves 80 international destinations from Atlanta. This weekend it also added London's Heathrow to the mix, filling a critical gap in its European network. Delta has expanded its operations and spiffed up its international terminal at New York's JFK International Airport. By summer, Delta officials estimate that 40 percent of the company's revenue will come from international routes.

"This changes everything," said Jeff Pearse, Hartsfield-Jackson's director of marketing and the airport's go-to guy for Asian routes. "Nothing generates economic activity like a direct air link. Things just happen organically almost."

The first flight, which left Atlanta on Sunday amid considerable ceremony and fanfare, carried state government and business officials on a trade mission they hope will translate into business opportunities. Gov. Sonny Perdue will open a Georgia economic development office in Beijing as part of the trip.

Colorado-based airline consultant Mike Boyd said the Atlanta-Shanghai route is a big deal for obvious reasons.

"They have all the money," he said of the Chinese. "A nonstop route can make a huge difference as to where ... to put [a] factory."

Though it will generate a lot of buzz, the 7,659-mile Shanghai flight is not Delta's longest. That distinction belongs to the route from New York JFK to Mumbai, India —- 7,800 miles. Delta's Atlanta-Dubai route, at 7,598 miles, comes in third.

"Delta 10 years ago was domestic-to-domestic," Hauenstein said. "It was Buffalo [connecting through Atlanta] to Orlando. It was Lexington to New Orleans. Where will Delta be in 10 more years? It will be Shanghai to Lima [connecting through Atlanta]. It's going to be Tel Aviv to Mexico City."

The China flight comes at a time when Hartsfield-Jackson, the nation's busiest airport, is building a new $1.5 billion international terminal, which will begin boarding passengers in about four years. That terminal, with its soaring glass walls and skyline view of Atlanta, will bring the number of international gates at the airport to 40.

"Atlanta is in line, if Delta pulls it off, to become a global portal," Boyd said. "The biggest growth area is between Latin America and China, in terms of new trade flows. If you look at a map, what gets in the way? Atlanta."

The Atlanta airport, used by 86 million travelers a year, has a $23 billion annual impact on the local economy and is widely regarded as a major economic engine for regional development. Delta, meanwhile, is responsible for more than 70 percent of the airport's commercial flights.

The Atlanta-Shanghai run is strategically important to Delta. But it remains to be seen how profitable the route becomes for the airline. There are enormous start-up costs, Delta officials concede. And Delta will have to go head-to-head with Korean Air, United, Northwest and other carriers in the U.S.-to-China market, with the number of direct flights from other U.S. airports increasing every year.

"But in the long term, it is an absolutely vital route to us," said Delta President Ed Bastian. "It's quite valuable, and people are willing to pay a premium for that."

A round-trip ticket in Delta's Business Elite (once known as first class) will run about $7,000, compared with about $990 in economy.

Business travelers like Jack Portman, CEO of Atlanta-based John Portman and Associates, said a direct flight from Atlanta to China is "music to my ears." Portman, who has traveled to China dozens of times for his architectural-engineering firm, said he now changes planes in Seoul to get to China, adding hours and another level of grief to his travel time.

He cited the advantages of a direct flight.

"This saves you time," he said. "It saves you hassles."

Delta's challenge, according to Portman, is to match the premium service now provided by Asian airlines flying to China.

Delta's Hauenstein said his carrier is up to the challenge, with top-of-the line food and beverage offerings and other amenities planned.

"We're going to have the most comfortable pillow anywhere," he said. "We're going to have a pillow just like you would take from home."

DELTA FLIGHT 19: ATLANTA TO SHANGHAI

7,659: Miles between Atlanta and Shanghai

15.4: Hours of flying time between the two cities

34,000: Gallons of fuel consumed by the flight

268: Number of passengers the plane will carry

218: How many of those seats will be in the economy section

7,000: The approximate cost, in dollars, of a round-trip Business Elite class ticket.

8: Number of direct daily flights by U.S. airlines from U.S. to China

1: Number of direct flights from the Southeast to China

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