LY signs full-on strategic cooperation agreement with Delta

[tavster]

@Dan looks like LY just announced a full-on agreement with Delta covering frequent flyer, code share etc
Plus path for LY to potentially join Skyteam - it's not up to DL but the company commits to assist
I'm pulling all the details now

Google translate of the filing:

The company is honored to announce that on June 29, 2023, the company signed with Delta Air Lines ("Delta") a binding agreement in principle ("the agreement") for strategic cooperation in the field of passenger transportation within the framework of which the company and Delta (together: the "airlines") will enter into several arrangements Commercial, among them, a codeshare agreement (CodeShare) according to which each airline will have the opportunity to market seats on the other airline's flights; A club sharing agreement between the airlines, which will mutually enable the accumulation and realization of benefits for the club customers of the two airlines; and a lounge agreement that will allow the airline passengers who are entitled to have access to the lounges operated by the airlines ("the commercial arrangements" and together with the "cooperation" agreement).

The cooperation will apply to flights on routes operated by the airlines, including the direct routes of the airlines between Israel and the United States in both directions; On some routes from Israel through Europe to a variety of destinations in the United States, in both directions; and in addition on onward flight routes from airline destinations in the United States to other destinations operated by Delta within the United States and the American continent; Everything is in accordance with the agreements of the parties in the commercial arrangements as formulated and subject to the approvals of the competent authorities in Israel and the United States, as the need arises.
The cooperation will allow the company, among other things, to increase the supply of seats to its destinations in the United States, expand its route network, improve the value proposition for a wider range of customers, as well as increase the range of services provided to the company's luxury passengers.

In addition, within the framework of the agreement, and as much as the company is interested in it, Delta will make reasonable efforts to assist the company in joining the airline alliance to which Delta belongs - SkyTeam.

The agreement establishes common principles that will apply to the relationship between the airlines in the commercial arrangements, as well as limitations on the company from being associated with similar arrangements with airlines based in the United States, all in accordance with the terms and deadlines that were agreed upon.
The parties agreed to commit to the agreement for a period not less than five years from the date of implementation of the code sharing agreement or the club sharing agreement, whichever is later, after which each party will have the option of terminating with a 6-month advance notice (for any reason).

The signing of the agreement with Delta and the cooperation constitute a milestone in the implementation of the company's strategic plan, in its growth and in the expansion of the core areas of its activity, as detailed in section 8.15 of the report describing the corporation's business in the company's periodic report for December 31, 2022 (reference number: 2023-01-019483),
In the company's estimation, the cooperation with Delta is not expected to significantly affect the company's business results. The aforementioned regarding the effect of the cooperation, including the company's engagement in the aforementioned commercial arrangements, constitute forward-looking information, within the meaning of the Securities Law, 1968-5578 based on the company's current estimates, where these estimates depend to a large extent on Delta and third parties and their activities, as well as In the event of events beyond the company's control.

[moe8555]

Wonder if it would be wise to use up any banked Qantas points on El Al before the window of opportunity potentially closes.  Doubt it will affect the Etihad arrangement since they are non-alliance.

Unless Delta institutes a partner chart for El Al, the redemption opportunities on El Al via Delta SkyMiles will obviously be dead on arrival - and surely vice versa knowing El Al...

[lover of truth]

delta is a good choice
AA is too weak in tlv to help and united is doing well alone
a strong codeshare with delta could knock united out of the market
if they codeshare with af and vs it could also crush luftansa goup dominance at tlv

[tavster]

https://news.delta.com/delta-air-lines-and-el-al-israel-airlines-launch-strategic-partnership

[yelped]

Wow, pretty significant news.

[Dan]

@Dan looks like LY just announced a full-on agreement with Delta covering frequent flyer, code share etc
Plus path for LY to potentially join Skyteam - it's not up to DL but the company commits to assist
I'm pulling all the details now

Google translate of the filing:

The company is honored to announce that on June 29, 2023, the company signed with Delta Air Lines ("Delta") a binding agreement in principle ("the agreement") for strategic cooperation in the field of passenger transportation within the framework of which the company and Delta (together: the "airlines") will enter into several arrangements Commercial, among them, a codeshare agreement (CodeShare) according to which each airline will have the opportunity to market seats on the other airline's flights; A club sharing agreement between the airlines, which will mutually enable the accumulation and realization of benefits for the club customers of the two airlines; and a lounge agreement that will allow the airline passengers who are entitled to have access to the lounges operated by the airlines ("the commercial arrangements" and together with the "cooperation" agreement).

The cooperation will apply to flights on routes operated by the airlines, including the direct routes of the airlines between Israel and the United States in both directions; On some routes from Israel through Europe to a variety of destinations in the United States, in both directions; and in addition on onward flight routes from airline destinations in the United States to other destinations operated by Delta within the United States and the American continent; Everything is in accordance with the agreements of the parties in the commercial arrangements as formulated and subject to the approvals of the competent authorities in Israel and the United States, as the need arises.
The cooperation will allow the company, among other things, to increase the supply of seats to its destinations in the United States, expand its route network, improve the value proposition for a wider range of customers, as well as increase the range of services provided to the company's luxury passengers.

In addition, within the framework of the agreement, and as much as the company is interested in it, Delta will make reasonable efforts to assist the company in joining the airline alliance to which Delta belongs - SkyTeam.

The agreement establishes common principles that will apply to the relationship between the airlines in the commercial arrangements, as well as limitations on the company from being associated with similar arrangements with airlines based in the United States, all in accordance with the terms and deadlines that were agreed upon.
The parties agreed to commit to the agreement for a period not less than five years from the date of implementation of the code sharing agreement or the club sharing agreement, whichever is later, after which each party will have the option of terminating with a 6-month advance notice (for any reason).

The signing of the agreement with Delta and the cooperation constitute a milestone in the implementation of the company's strategic plan, in its growth and in the expansion of the core areas of its activity, as detailed in section 8.15 of the report describing the corporation's business in the company's periodic report for December 31, 2022 (reference number: 2023-01-019483),
In the company's estimation, the cooperation with Delta is not expected to significantly affect the company's business results. The aforementioned regarding the effect of the cooperation, including the company's engagement in the aforementioned commercial arrangements, constitute forward-looking information, within the meaning of the Securities Law, 1968-5578 based on the company's current estimates, where these estimates depend to a large extent on Delta and third parties and their activities, as well as In the event of events beyond the company's control.

Link to filing?

[tavster]

Link to filing?

https://maya.tase.co.il/reports/details/1531443

[Bostener]

והסכם טרקלינים שיאפשר גישה של נוסעי חברות התעופה הזכאים לכך לטרקלינים המופעלים על ידי חברות התעופה

This means if you fly Delta you will get access to all El Al lounges.

Now the question is if you have Delta credit cards that give you access to lounges will that give you access to El Al lounges?

[tavster]

והסכם טרקלינים שיאפשר גישה של נוסעי חברות התעופה הזכאים לכך לטרקלינים המופעלים על ידי חברות התעופה

This means if you fly Delta you will get access to all El Al lounges.

Now the question is if you have Delta credit cards that give you access to lounges will that give you access to El Al lounges?

Why would El Al give access to its lounge if Delta doesn't give access to LY elites?

[Bostener]

Why would El Al give access to its lounge if Delta doesn't give access to LY elites?

Where do you see that Delta will not give access after the agreement will be finalized?

[tavster]

Where do you see that Delta will not give access after the agreement will be finalized?

Because DL doesn't provide access to its own elites, IINM?

[davidd75]

אני נרגשת וגאה לבשר על שיתוף פעולה אסטרטגי ראשון מסוגו של אל על עם חברת דלתא אייר ליינס האמריקאית, מחברות התעופה המובילות בעולם.
כחלק ממימוש התכנית האסטרטגית של החברה, שמנו לעצמינו יעד לחזק ולשפר את הצעת הערך שלנו ללקוחות אל על בנתיבי צפון אמריקה, ובכלל זה הרחבת סוגי השירותים, רשת הנתיבים, התדירויות וההטבות עבורכם.
במסגרת שיתוף פעולה זה, אשר עתיד להיכנס לתוקף בתחילת 2024, יהנו לקוחות שתי החברות מאפשרויות טיסה רבות יותר בין תל אביב לארה"ב באמצעות טיסות שמופעלות ע"י שתי החברות.
המשמעות היא הרחבת רשת הנתיבים, התדירויות והיצע המושבים, באמצעות טיסות ישירות וטיסות המשך ברחבי צפון אמריקה ברשת הנתיבים הענפה של דלתא, המציעה מגוון טיסות המשך בכל יום מכל יעדיה בארה"ב.
כמו כן, לקוחות הרוכשים כרטיסי טיסה המשלבים טיסות אל על ודלתא יוכלו לבצע צ'ק-אין אחד לכל אורך המסלול, כולל הוצאת כרטיס עלייה למטוס בנקודת המוצא, ותיוג הכבודה עד ליעד הסופי.
ההסכם בינינו לבין דלתא יכלול גם שיתוף מועדונים כך שחברי מועדון הנוסע המתמיד של אל על יוכלו לצבור ולממש נקודות בטיסות דלתא ולהיפך.
אני בטוחה ומשוכנעת שתהנו מהערך ששיתוף פעולה זה יביא עימו.
משהו טוב קורה באל על!
טיסה נעימה,
דינה בן-טל גננסיה
מנכ"לית אל על

[JMHO]

Link to filing?

Wait, they didn't consult with you?

[Dan]

Wait, they didn't consult with you?

I met with Kenny and various teams several times for the first year and change.

[SHL]

Next question is how will this work with the new connection protocols in TLV

The letter to ground handling companies said LY pax would not even need to reclear security, would that apply if LY took over security screening for the exJFK DL flight?

[Dan]

Next question is how will this work with the new connection protocols in TLV

The letter to ground handling companies said LY pax would not even need to reclear security, would that apply if LY took over security screening for the exJFK DL flight?

I highly doubt LY will be doing that.

[confu]

delta is a good choice
AA is too weak in tlv to help and united is doing well alone
a strong codeshare with delta could knock united out of the market
if they codeshare with af and vs it could also crush luftansa goup dominance at tlv

do they need help in tlv? they need help in us....

[confu]

does this mean delta will buy a stake in LY?

[tavster]

does this mean delta will buy a stake in LY?

No

[lover of truth]

do they need help in tlv? they need help in us....

After DOJ blocked JBU maybe AA will seek northeast alliance with LY...