United Continental Holdings Inc (UAL) and Delta Air Lines, Inc. (DAL) Battle for New York

However, the large local population in New York means that airlines are not as heavily reliant upon connecting traffic there as in most hub cities. As a result, Delta Air Lines, Inc. (NYSE:DAL) can serve the market very well even though most of its capacity is divided between LaGuardia and JFK. Delta also offers popular hourly “Shuttle” services from LaGuardia Airport to Boston, Washington, and Chicago, which United does not provide.

However, Delta’s biggest edge in the battle for New York is its superior customer service. Whereas United Continental Holdings Inc (NYSE:UAL) came in dead last in the most recent Airline Quality Rating survey, Delta came in fourth (out of 14). For business travelers, who are not very sensitive to price, superior customer service metrics are a major factor in travel decisions.

Foolish bottom line
Delta is quickly catching up to United Continental Holdings Inc (NYSE:UAL) in the New York area, although United is making a valiant effort to reinforce its strengths, particularly its large hub operation at Newark. In the next year or two, American Airlines will also become a major player in the New York market, thanks to its merger with US Airways Group, Inc. (NYSE:LCC). The merger will combine US Airways’ strength on the Boston and Washington shuttle routes with American’s international gateway at JFK Airport.

However, Delta Air Lines, Inc. (NYSE:DAL) has one killer advantage over American and United: superior customer service. United is still recovering from turbulence caused by its recent merger with Continental, while American hit some minor bumps during its bankruptcy proceedings, and is about to engage in a complicated merger with US Airways. Delta’s stability and track record of strong customer service performance will probably make it the airline of choice for New Yorkers, especially business travelers.

The article United and Delta Battle for New York originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Adam Levine-Weinberg is short shares of United Continental Holdings (NYSE:UAL) and is long Sep 2013 $33 Puts on United Continental Holdings. The Motley Fool has no position in any of the stocks mentioned.

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