It is definitely not surprising to me, even though it is very speculative.  If it does happen though, it does not spell well at all for the Cleveland hub in my opinion.

 

 

Continental Merge

JEFF STACKLIN

10:31 am, March 21, 2006

 

Continental Airlines might be part of the next round of airline consolidation, airline experts say.

 

The airline, the largest carrier at Cleveland Hopkins International Airport, is mentioned as one of three airlines in line for a merger, according to this article posted by TheStreet.com.

 

More at:

http://www.crainscleveland.com/article/20060321/FREE/60321002

The airline industry is looking very scary.  I'm confident they can pull it together though.

Rumor, speculation, and inuendo is the name of the game in this industry. I wouldn't put a lot of worry into this until word comes straight from the airlines' mouthes.

 

I would imagine that IF (big if) Continental were to enter into some kind of merger agreement with another carrier, that Continental would be the airline buying the other carrier, which could be in Cleveland's favor. I cannot really see Continental making a bid for Northwest, especially since their fleet types are very different and there is a good deal of overlap in their combined networks. However, Continental and Northwest have been very close partners for a long time, and if Continental wants Northwest's vast Asian network bad enough, an argument could be made in favor of a complete merger between the two carriers. The effect on Cleveland would probably be pretty drastic, given Northwest gorgeous new McNamara terminal in Detroit, which would undoubtedly absorb the capacity currently held in CLE. At best, given that situation, I could see Continental keeping a sort of "focus city" operation at Hopkins, only flying high density and specialty routes such as Los Angeles, Boston, and Orlando. At worst, a complete pulldown would occur, with service only to the combined carrier's remaining hubs.

 

A merger between Delta and Continental would, in my opinion, by a little more plausable, especially given both carriers fly similar fleet types and are already in the same airline alliance. However, there is a lot of overlap in their route networks, and taking on Delta's enormous debt would be a big challenge. Cleveland's stance in a combined Continental and Delta would be a toss-up between them and Delta's behemoth of a hub at the Cincinnati/Northern Kentucky International Airport. While Delta has cut back in CVG in recent months, Delta and Delta Connection still operate nearly twice as many flights as Continental, Continental Express, and Continental Connection fly from CLE. CVG's facility are also far better equiped for hub operations, with 3 parallel runways spaced far enough apart for simultaneous takeoffs and landings and a large, spacious new terminal. However, CVG's achillie's heel is that their origin and destination traffic (on which airlines thrive) is piss poor at best. Cleveland's O&D traffic trumps Cincinnati's, and could pose well for consolidating hub operations in Cleveland instead of Cincinnati.

 

Again, this is all just speculation on my part. Take it for what you will.

Our O&D traffic is "piss poor" because leisure fares are so high.  Cincinnatians have been traveling to Indy, Columbus, Louisville and Dayton for years to escape the high prices.  Cleveland's O&D would be hurt too, except for the fact that people in Cleveland have nowhere else to go to get a flight except maybe Akron.  Delta wants to be somewhere they can control all of the operations.  They kept Southwest out of ATL and CVG.  They won't make their hub in an airport with SW.  Hopkins would have to dump SW.  CVG is better airport than CLE because the runways are more efficient.  I don't think you will see a DL hub in CLE any time soon.

CLE is landlocked and has very little room to expand. Plus from what I remember of the Continental Concource, it is old & a little dated on the inside.

Our O&D traffic is "piss poor" because leisure fares are so high.  Cincinnatians have been traveling to Indy, Columbus, Louisville and Dayton for years to escape the high prices.  Cleveland's O&D would be hurt too, except for the fact that people in Cleveland have nowhere else to go to get a flight except maybe Akron.  Delta wants to be somewhere they can control all of the operations.  They kept Southwest out of ATL and CVG.  They won't make their hub in an airport with SW.  Hopkins would have to dump SW.  CVG is better airport than CLE because the runways are more efficient.  I don't think you will see a DL hub in CLE any time soon.

 

Its a combination of things, DL/NW finacial shape.  Airlines with HQs in their home city (detroit/atl) are only hanging on because their HQ is in that city.  CMH, i was told that close to 70% (30 o&D ) of the traffic in CVG and ATL is CONNECTING. O&D traffic is very important. and in Cleveland's O&D is around 60%.  the economy of Detroit is going down the tube fast.  It appears either airlines dimise would be a gain for Cleveland and Ohio.

^NW is headquartered in Minnesota.

^NW is headquartered in Minnesota.

 

Yes but there largest hub is in Detroit

There actually is plenty of room for expansion at Hopkins, the biggest stumbling block is the IX center.  As much room that it holds, and as many shows that it brings in, it would be fine with me if it were to be torn down in order to keep AND bring other airlines into the area.  The main terminal (A,B,C) is outdated, has a cramped feeling to it.  Terminal D, which stands away from the others, to my knowledge, was built to be a temporary terminal.  With the demolition of the IX center, it would allow the room for a brand new complex (one similar to Atlanta's would be nice) and for further expansion of runways.  A few major problems....where would the money come from to do this, would Brookpark cry if the IX center was to be torn down before the allotted time frame(even if it meant the region would lose out on a major hub), and the city of Cleveland wold have to sh&t or get off the pot about building a convention center to replace the IX center(more money).  There are many factors that weigh in here, and what scares me most is the past track record of this region in dealing with major decisions.