Posted May 12, 200421 yr CVG's big 'What if?' As a hub, airport's eggs in one basket By Alexander Coolidge and Bob Driehaus Post staff reporters With losses at Delta Air Lines mounting to more than $3.6 billion over the last three years and profitability nowhere in sight, the region's dominant airline this week acknowledged bankruptcy is a growing possibility. Calling its losses "unsustainable," Delta said Monday that a Chapter 11 bankruptcy reorganization was something it might need to do if it can't reduce its costs. At Cincinnati/Northern Kentucky International Airport, Delta's second-largest hub, a bankruptcy would inevitably bring change as the nation's third-largest carrier reorganizes its finances to try to become more competitive. The impact could range from job cuts for some of the 8,000 Delta employees that work here to a loss of revenue for the airport to the emergence of a new low-fare carrier, experts say. A Delta bankruptcy would likely affect the airport's bottom line, because the carrier accounts for more than 90 percent of the facility's flights and fuels the airport's operations: • The airport's $59 million budget is paid for mostly through landing fees, ramp rental fees, terminal leases, concessions revenue, including parking, and ticket fees. • Delta and its subsidiaries pumped $35.5 million into airport coffers in 2003, according to the airport. • The airline and its passengers contributed $16.3 million in landing fees out of a total of $21.4 million. • Delta's passengers pumped $30 million into airport capital projects, including construction of the new north-south runway, through a $4.50 passenger facility charge tacked onto tickets. More at http://www.cincypost.com
May 12, 200421 yr Here's the question - if Delta had to cut back its operations at CVG, would some other carrier recognize the market and swoop in to give us another option?
May 12, 200421 yr Hmm with the way the airline industry is at the moment (traffic still not at pre-9/11 levels) i dont think another airline company would expand into Delta's place right away like that
September 8, 200420 yr Delta to Cut Up to 7,000 Jobs in 18 Months Filed at 8:56 a.m. ET, September 8, 2004 ATLANTA (AP) -- Delta Air Lines will cut up to 7,000 jobs, or 10 percent of its overall work force, during the next 18 months, company CEO Gerald Grinstein said Wednesday. In addition, Delta will no longer use the Dallas-Fort Worth airport as one of its four hubs, he said during a meeting with 300 of the company's middle managers. Instead, Delta will expand its hubs in Cincinnati and Salt Lake City with redeployed aircraft from Dallas-Fort Worth. More at http://www.enquirer.com
September 8, 200420 yr First air fares cut then this news. This is really good for our region. It is about time something goes in favor of Cincy.
September 8, 200420 yr This really comes as no surprise for those in the airline industry. The DFW operation was by far the weakest link out of Delta's four major hubs. There was no way Delta's CVG operations were in any sort of peril. The de-hubbing of Dallas is only one aspect of Delta's massive transformation plan to return to fiscal solvency. Also included in the plan is the retiring of 4 fleet types, increase flying by the airline's low-fare subsidiary SONG, and increased flying from the airline's focus cities in Boston, Orlando, Ft. Lauderdale, NYC, and Columbus. The complete transformation plan and its effects on CVG can be found at: http://biz.yahoo.com/prnews/040908/clw033_1.html Preliminary figures show Delta will add approximately 20 new flights in CVG, mostly from the airline's Delta Connection subsidiary. Also, Delta's "Simplifares" are for the most part a PR attempt to get people from the Cincinnati area to stop flying from Dayton and Louisville for lower fares. The 60% cheaper fares only apply to certain routes and are not always available. A person from Cincinnati put it best on another message board: As a Cincinnati resident, I have quite a few thoughts about Delta's SimpliFares announcement. The "official" rhetoric from Atlanta is that Delta is "listening to our customers who are tired of high fares at CVG". In reality, the only thing that Delta is hearing is the sound of all those cars wizzing past CVG and headed for DAY, SDF, LEX, IND or CMH. Even Delta acknowledges that 3500 passengers each week are driving to these near-by airports in order to grab a better fare. Believe me, the people of this community have been griping about Delta's fares for over 15 years. The only reason that Delta is responding now is because they are proactively trying to stop an LCC from invading CVG and driving the fares even lower and loosening the Widget's grip on their 92% market share. The State of KY (where CVG is located) and it's residents have offered millions upon millions of tax dollar credits to support Delta's hub, yet we here near CVG have to drive elsewhere to afforably fly. Doodling with these new fares, I find that cheaper rates are consistently still available from near-by airports. Furthermore, Delta has confirmed that on average only 8 seats per flight are available at the new "bargain fare". The only significance to this new fare structure is the elimination of Saturday night stay requirements. In short, instead of Delta shouting about how "fares are being slashed by 60%", I would rather hear an official apology for the reaming of us local flyers over the past 15 years.
September 8, 200420 yr I assumed that the simplifares campaign and this augmentation of the CVG hub were connected. They have been going to considerable lengths to promote it in Cincinnati considering their shaky financial condition. They have advertised on t.v., had guys riding around downtown on bikes pulling big signs on trailers. I even got a new mouse pad with their advert on it which some girls were giving out on Fountain Square a week or so ago.
September 8, 200420 yr simplifares is simply bs, imo. "hey cincinnati, we're still gonna rip you off! you're now only paying a lot more than at other airports, not a ton more! get excited everyone!" i'd really like to see Song operate here if they're really interested in providing low fares @ CVG.
September 8, 200420 yr ^LOL, they aren't interested in providing low fares, they are interested in making money and trying to keep from going into bankrupcy.
September 21, 200420 yr This winter, Delta Connection carriers Atlantic Southeast Airlines and Comair will begin flying to five new cities from the Cincinnati/Northern Kentucky International Airport. Starting Jan. 31, the airlines will begin jet service to Baton Rouge, La.; Montgomery and Mobile, Ala.; and Pensacola and Fort Walton Beach, Fla. Delta said the routes are part of the airline's newly restructured route system announced earlier this month. The airline said it will "de-hub" its operations in Dallas/Fort Worth in order to grow its hubs in Atlanta, Cincinnati and Salt Lake City. Locally, Delta expects to have 619 total daily flights by February, up from a current schedule of 590 daily flights. The number of nonstop destinations from Cincinnati will grow a bit, too. By February, Delta expects to have 138 nonstop destinations, up from the current number of 135. The Cincinnati/Northern Kentucky International Airport is Delta's second-largest hub, with Delta and its subsidiaries controlling about 90 percent of the daily flights.
September 21, 200420 yr Baton Rouge to Cincy will be nice for me. Does Delta do a puddle hop from Cincy to C-bus?
September 22, 200420 yr Yes they do. Well, as long as the price is right, that will make it easier for to get home. :)
December 25, 200420 yr This is sad. I'm probably going to be working at CVG and will have to put up with these types of events happening.
December 26, 200420 yr Reason #1 government subsidies of airlines must end. They need to open the airline industry up to competition, instead of giving the big companies a crutch on which to rely. You can be sure if the airlines were totally private this whole mess of the last week wouldn't have gone down. They would've had contingency plans because they have to or go under. Instead we've got huge, bloated inefficient entities that can't even manage to figure out where your luggage is going.
December 28, 200420 yr I thought Jimmy Carter deregulized airliners. As to the subsidies, I thought they were needed (after 9/11) or else there would be no airlines (they all be bankrupt) Someday, we'll finally decide what we want. :roll:
December 28, 200420 yr Government subsidies to commercial aviation consist mostly of infrastructure maintenance, improvement and expansion in which the federal government's Airport & Airways Trust Fund serves as the industry's banker when it comes to physical plant (airports, air traffic control facilities, etc.). This constitutes a subsidy, even though it is paid for by user fees (ticket taxes, etc), as the trust fund is not subject to the whims of the marketplace, holds no profit margin (as a private lender would), does not require collateral (though it does require a local/private share of the total cost) and airlines typically pay no property taxes on facilities financed by the multi-billion-dollar trust fund. Another large government subsidy is the more than $2 billion a year for salaries and other operating expenses to run the nation's air traffic control system. These are not funded by user fees and come out of the federal general revenue taxes you and I pay each April 15. If these were instead paid for by airline ticket taxes, landing rights fees, etc. the cost added to your airline ticket would go up by an average of just $3 (accounting for general aviation having to also pay a portion of the total). Other subsidies include Essential Air Service subsidies which total hundreds of millions of dollars per year, plus NASA and Defense Department contracts to aerospace manufacturers which result in substantial technology transfer benefits to their commercial aircraft products, and local subsidies including property tax exemptions for airport facilities, tax-exempt construction bonds and public ownership of airport facilities which do not close or get scaled back when the economy slows. All comparable expenses are paid for by shippers and users of the railroad system, which is privately owned, operated, maintained, financed and heavily taxed. Amtrak, a semi-governmental company, uses the private railroad system and receives an annual federal subsidy of $1.2 billion (in recent years) to use the rail system, run its own stations, traffic control systems and make capital improvements to its physical plant. It's the exact reverse of how the federal government funds the highway and aviation systems which have private users on governmental owned, operated and financed infrastructure. Until this inequity is rectified, we will not have a high-quality rail passenger system in this country. Sorry for another long-winded message! KJP "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
December 29, 200420 yr Government subsidies to commercial aviation consist mostly of infrastructure maintenance, improvement and expansion in which the federal government's Airport & Airways Trust <snip post> Sorry for another long-winded message! KJP No problem here either (even after my grousing/rant with you about E. Broad St) I didn't realize all the "subsidies" concerning the airliners (though I supose airports could be debated as a subsidy or as a public building.
December 30, 200420 yr I don't remember the "grousing/rant" about East Broad Street. Probably just as well. I count publicly owned airports as a subsidy because, when they were begun, railroads maintained their own stations, were wholly responsible for their depreciation, maintenance and property taxes. Lots of property taxes. Consider this sidebar from the April 1959 issue of Trains Magazine article "Who Shot The Passenger Train?".... CASE IN POINT Rail vs. Air in Toledo A favorite pastime in Toledo, O., (population 330,000) use to be criticizing its ancient Union Station. Built in 1886, the passenger facility was owned by New York Central but also used by B&O, C&O and Wabash. Civic wrath reached such a pitch that a local businessman erected a billboard which read DON'T JUDGE TOLEDO BY ITS UNION STATION. [New York] Central finally capitulated after the war despite the fact that it was piling up bigger and bigger passenger deficits. The [rail]road spent 5 million dollars of its own money to erect a brand-new Central Union Terminal in 1950. Today the structure represents an investment of $4,856,745 and in the year 1956 land and property taxes totaling $42,745 were paid on it. Fourteen miles from downtown is the Toledo Express Airport, served by Capital, Delta and United. Convairs, DC-6B's and Viscounts serve the facility; nonstop flights to both New York and Chicago are available. The airport, built entirely with city funds, was completed in 1955. In 1957 its financial statement looked like this: Gross operating revenues: $192,660 Gross operating expenses: $209,026 Operating deficit............. $ 16,366 Toledo Express Airport maintains depreciation records though such a charge is not included in operating expense. The annual depreciation charge on such items as hangars, runways and fencing is $86,851 which, if added to the deficit, brings the figure to $103,217. Moreover, there is the matter of debt service. The airport, valued at $3,865,228, was financed out of city funds as well as a municipal improvement fund and a bond issue. No interest on the amount borrowed is included in the airport statement, but at the 2 1/2 percent rate applicable, the amount is $96,631 -- which boost the deficit to $199,848. No taxes are levied upon the publicly owned airport, of course, but if it were a private concern taxed at current rates the bill would be $45,005. This brings the 1957 deficit to $244,853. _______________________ This was before the start of the federal air traffic control system in the 1960s, or the start of the Airport & Airways Trust Fund in 1970. The moral of that story is the airlines' fares out of Toledo would have been higher had they owned and operated their own airport as a fixed cost, rather than use a public facility as a variable cost. Worse, if you ran a railroad and your stations (as a for-profit facility) had to compete against airports (a nonprofit facility), you'd get out of that competition in a big hurry. That's just what the railroads did. KJP "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
January 28, 200520 yr Air fares noticeably lower here Delta promotion has effect By James Pilcher Enquirer staff writer A year after Cincinnati had the fastest-rising air fares in the country, local fliers saw one of the biggest drops in ticket prices nationally as Delta Air Lines began streamlining and lowering its fares here. The latest Air Travel Price Index was issued by the federal Bureau of Transportation Statistics on Thursday. Local fares fell 8.2 points for the third quarter of 2004 compared with the same period in 2003. The index, which uses 1995 as its base, calculates the relative rise and fall of prices but does not rank airports by average fares. The drop tied Cincinnati with Chicago for the fifth-biggest fall among the nation's 85 largest markets. Only Philadelphia, Boston and Charlotte saw bigger decreases. Nationally, the index dropped 2.9 percentage during the period compared with third-quarter 2003. The report released Thursday covers the period when Delta implemented SimpliFares, which lowered many prices - especially those for more expensive last-minute travel. Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050128/BIZ01/501280352/1076/BIZ
January 28, 200520 yr I'm flying to Boston in April (prepare now for the pictures) and I was happy to discover flying Delta non-stop out of Cincy was really the most cost-effective solution.
January 28, 200520 yr Monte is doing that because I haven't replied to his request to be listed on my links @ roadfan.com Hey Monte, remind me again on Monday if don't get back to you by then.
July 29, 200519 yr This appeared in the 7/28/05 Enquirer: Air fares have fallen locally By James Pilcher Enquirer staff writer Airfares to and from the Cincinnati/Northern Kentucky International Airport saw the biggest year-over-year drop in the first quarter among major markets, new federal data released Wednesday showed. According to the Air Travel Price Index, Cincinnati fares dropped 22.7 percent compared with the first quarter last year. The report, issued by the Bureau of Transportation Statistics, also showed that local fares have had the eighth-largest drop out of the nation's 85 largest markets since 1995. Fares here, as measured by the index, are now 4.5 percent below where they were seven years ago. The report, issued for each quarter, looks at fares compared to those of the base year of 1995. Cincinnati had long been known as one of the most expensive markets in the nation, primarily because of Delta Air Lines' dominance here. But earlier this year, other Transportation Department figures showed that the average airfare for Cincinnati was $310 for fourth-quarter 2004, ranking 10th in the nation. It was during that period that Delta's new SimpliFares price scheme, which lowered many fares, went into full effect here after being launched in August. Local traffic has surged since then, with airport officials reporting a 33.6 percent jump in May over the same month last year in passengers starting or finishing their trips here. Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050728/BIZ01/507280316/1076/rss01
August 16, 200519 yr From the 8/15/05 Enquirer: New Delta affiliate to serve CVG By James Pilcher Enqurier staff writer Delta Air Lines today announced plans to launch a new branded regional carrier with a new service – first class seats in regional jets – out of the Cincinnati/Northern Kentucky International Airport. On Sept. 1, Shuttle America will start a daily round-trip flight between Cincinnati and Detroit as part of a larger deployment of the new brand in several other cities, including Columbus and Salt Lake City. The flights will be operated by Republic Airlines, which already operates planes on behalf of the Delta Connection regional network under the name Chautauqua Airlines. The service will feature the Embraer EMB-170 regional jets, which includes six first class seats as well as 64 seats in coach. The new brand will join Comair, Atlantic Southeast Airlines (ASA) and Chautauqua as serving Cincinnati on behalf of Delta – Erlanger-based Comair and Atlanta-based ASA are both owned by Atlanta-based Delta. Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050815/BIZ01/308150013/1076/rss01
August 17, 200519 yr This was in the Post on 8/16/05 about Delta and the looming bankrupcy: Delta struggling to avoid bankruptcy By Jon Newberry Post staff reporter Despite an agreement to sell its regional carrier Atlantic Southeast Airlines for $425 million, Delta Air Lines on Monday signaled it is running out of time to avoid bankruptcy as demands on its remaining cash mounted. The Atlanta-based airline, in a quarterly financial report, cited several factors threatening its ability to continue operating without court protection: - Troubled contracts with credit card providers Visa and MasterCard. - $470 million of debt that could come due by Dec. 31. - An unusually large number of early retirements by its pilots. - Historically high fuel costs. - Weak prices for air travel. More at http://www.cincypost.com
August 17, 200519 yr I bet Salt Lake City can kiss the hub good-bye. Oh well, better for Cincinnati and Atlanta.
August 19, 200519 yr From the 8/17/05 Kentucky Post: If Delta files, what about CVG? By Bob Driehaus Post staff reporter More flights or a drastic cut in service? The tales of two Pennsylvania cities might be instructive about the fate of Cincinnati/Northern Kentucky International Airport should Delta Air Lines file for bankruptcy. Airports in Philadelphia and Pittsburgh were both U.S. Airways hubs before the airline filed for Chapter 11 bankruptcy protection in 2002. Today, as U.S. Airways prepares to emerge from bankruptcy, Philadelphia has more U.S. Airways flights than ever and is enjoying record business. Pittsburgh, meanwhile, has lost more than half its 510 U.S. Airways daily flights and more than half of its total daily departures. Delta is struggling to avoid bankruptcy as it continues to bleed money in daily operations. Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20050817/NEWS02/508170369/1011/RSS02
August 24, 200519 yr The 8/21/05 edition of the NKY Sunday Challenger ran a series of articles on Delta and bankruptcy's implications in its Community Vision section and in its business section. Here are those articles: PHOTO: FINGERS CROSSED: Boone County Judge-executive Gary Moore says Northern Kentucky's vast economic stake in CVG hangs in the balance as Delta weighs its options. PHOTO: Gary Toebben Business Leaders Hope Delta Crisis Leaves Local Economy Unscathed By Michael Jennings The Sunday Challenger [email protected] The hordes of travelers that have trooped through the Cincinnati/Northern Kentucky International Airport since Delta Air Lines cut its fares a year ago can make it hard to imagine a future there without the Atlanta-based air carrier. Gary Toebben, for one, doesn't want to try. The airport, where Delta and its wholly owned subsidiary Comair account for 92 percent of the air traffic, is by far the largest source of jobs in Northern Kentucky, and it has "a huge economic impact on the region," said Toebben, president of the Northern Kentucky Chamber of Commerce. Unmistakable signs of financial malaise-accelerating losses, rapid devaluation of its stock and last week's downgrade of its Standard & Poor's credit rating-have made a bankruptcy filing by the nation's third largest airline seem all but inevitable. But Toebben and others concerned with Delta's local economic impact say they have no clear idea how the airline's travails will affect its operations at CVG. "We have no reason to expect that Delta will be leaving this airport," but can't predict beyond that, Toebben said. "We just want them to be successful." Full story at http://www.challengernky.com/articles/2005/08/21/community_vision/doc430638a42173d227854752.txt PHOTO: Ted Bushelman Delta Bankruptcy Ahead? By Amanda Van Benschoten and Michael Jennings The Sunday Challenger [email protected] [email protected] Airline ticket holders and frequent flyers who depend on the Cincinnati/Northern Kentucky International Airport can breathe easy for now. Despite reports that Delta Air Lines may file soon for Chapter 11 bankruptcy, airline industry analysts predict no significant changes in Delta's domestic or international flight schedule. "Historically, when an airline files for bankruptcy, they try to change as little as possible with their flight schedule, because any change is an indication to the industry that they might be in trouble," said Mike Miller, an analyst with The Velocity Group in Orlando, Fla. "If Delta files for Chapter 11, they will go to great lengths to reassure the industry that nothing will change." The good news for Northern Kentucky flyers is that CVG (the code letters for the airport in Hebron) plays an important role in the Atlanta-based company. It's the airline's second-largest hub, and one of its busiest. Only the Atlanta and Minneapolis airports serve more U.S. destinations nonstop than CVG. Delta and its wholly owned subsidiary Comair account for more than 90 percent of flights departing the airport. Analysts say that makes CVG too valuable an asset for Delta to tamper with. Full story at http://www.challengernky.com/articles/2005/08/21/business/doc43061a50c1886980777928.txt Local Travel Agents Not Worried Confident Delta Will Survive at CVG By Amanda Van Benschoten The Sunday Challenger [email protected] Local travel agents say they have no misgivings about booking future flights with Delta, despite the airline's financial troubles and predictions that it will soon seek bankruptcy protection. International travel out of Cincinnati/Northern Kentucky International Airport is on the rise, and that's likely to continue even if Delta's next chess move is a bankruptcy filing, said George Stefanopoulos, vice president and co-founder of Global Touch International. The company, based in Villa Hills, books international flights for travel agents and other passengers. "Business looks good," Stefanopoulos said. "People are continuing to fly. So that's a positive outlook for Delta. And (CVG) will survive. It's a very viable market with a thriving economy behind it." Domestic flyers also have little apparent cause for concern. Travel agents don't plan to decrease Delta bookings, because they don't anticipate any big change in the airline's flight schedule. Full story at http://www.challengernky.com/articles/2005/08/21/business/doc43061ba9405c9033214183.txt
September 7, 200519 yr Two articles.... Delta to Cut Up to 1,000 More Positions ATLANTA - Delta Air Lines Inc. said Wednesday that up to 1,000 jobs could be cut as part of its effort to accelerate its transformation plan. The affected positions are in addition to the up to 7,000 job cuts that the Atlanta-based airline announced in September 2004. Before that, 16,000 other jobs were shed since 2001 at the nation's third-largest carrier. Exactly how many employees will be affected in the new round is not known, but they will have opportunities to work elsewhere in the Delta system if there is an open job, spokeswoman Chris Kelly said. The changes will take effect by Dec. 1. In a memo to employees Wednesday, chief operating officer Jim Whitehurst said the job position reductions are part of the company's plans to reduce capacity at its Cincinnati hub. "We regret that these changes will have an impact on our employees in the area and their families, with in the range of 1,000 Delta and Comair positions affected," Whitehurst said. "At this time, however, the actual number of involuntary job losses is not known because we are working to minimize that number by offering relocation and other opportunities to affected Delta people." Full story at http://news.yahoo.com/s/ap/20050907/ap_on_bi_ge/delta_jobs ARTICLE 2 Delta Reducing Its Capacity in Cincinnati ATLANTA - Delta Air Lines Inc., the nation's third-largest carrier, said on Wednesday it is reducing capacity at its Cincinnati hub by 26 percent while boosting international service and making other changes in an effort to become more efficient. It also said it will accelerate the removal of widebody Boeing 767-200 jets to simplify its fleet as it fights to avoid a bankruptcy filing after piling up $10 billion in losses since January 2001. Less-popular flights early in the morning and late at night will be eliminated at Cincinnati/Northern Kentucky International Airport, airport spokesman Ted Bushelman said. The hub, Delta's second-largest, is losing nine destinations served by Delta Connection carriers, Bushelman said. The nonstop flights being eliminated Dec. 1 are to Moline, Ill.; Mobile and Montgomery, Ala.; Islip, N.Y.; Baton Rouge, La.; and Fort Walton Beach, Pensacola, Tallahassee and Daytona Beach, Fla., Bushelman said. Full story at http://news.yahoo.com/s/ap/20050907/ap_on_bi_ge/delta;_ylt=AiuX0H.6eKya_244dTMiNaNu24cA;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl
September 8, 200519 yr All I have to say is Nooooooooooooo! I was actually looking at the Islip, NY flight too.
September 8, 200519 yr This is horrible news. Just think, DHL is moving this Friday and are using 240 18 wheelers on Friday and 90 of them on Saturday to move stuff up to Wilmington. The airport will rebound though.
September 8, 200519 yr Even if Delta went away totally, which experts say is highly unlikely given Cincinnati's advantageous geographic location, Cincinnati would eliminate Terminals 1 and 2 and Comair's C and combine all flights in Terminal A and B. Cincinnati could sustain a 9 to 11 million passenger a year airport on its own. What would be lost are some jobs, and one hell of a great flight schedule. From Cincinnati you can go pretty much anywhere. I think this is just a readjustment. We are opening a new runway and expanding another. This airport is well posititioned into the future. It may be a little quieter for a while.
September 8, 200519 yr I have 96,000 miles flown in two years with Delta and over 50,000 this year. I just received my Gold Medallion card in the mail last week. Out of all the airports I have been to, Terminal 3 is one of my favorite. It is a great airport. Terminal 1 & 2 on the other hand remind me of Dayton and I dread those terminals.
September 8, 200519 yr Heaven forebid this would allow another, low cost airline to enter the Cincinnati market. I could care less about Delta, I feel bad for those losing jobs, but Cincinnati would do just fine with another airline coming in, such as Southwest, JetBlue, and now that Frontier has entered the Dayton market, I think that is another option. CVG will do fine, I doubt losing the hub status, just a reduction in flights. I hope this makes the airport consider bringing a new airline.
September 8, 200519 yr Sorry to bring bad news but analysts have been calling for one of the major airlines to go bankrupt for several years now. So, if Delta leaves, it may not be replaced. The airline industry has grown every year up to 2001, when it started shrinking. We may be reaching a peak here. See also the peak oil thread. On another note, Delta has been losing a billion dollars a year. How can any company do that and get away with it?
September 8, 200519 yr Shrinking hub cuts jobs, flights 1,000 workers; 26% of takeoffs and landings By James Pilcher Enquirer staff writer WHAT IT MEANS TO YOU - Up to 1,000 positions, most of them at Cincinnati/Northern Kentucky International Airport, will be cut by Dec. 1. Roughly 350 could be Comair employees. - Delta did not say whether employees would be offered buyouts. But it did say some could be offered other jobs in the system. - The impact of the job cuts and the collateral damage on those tied to the airport - cab drivers who serve the airport, Delta/Comair vendors and others - could be $47 million a year. Airport neighbors in Northern Kentucky and Hamilton County's western suburbs will see some relief from noise because fewer planes will be flying. - Delta and Comair will eliminate 26 percent of their daily flights to and from here. That means nine cities will no longer be reachable non-stop. Travel to some cities may be less convenient, with fewer flights (especially early in the morning and late at night). International service is not affected. Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050908/BIZ01/509080334
September 8, 200519 yr CVG finally takes a hit from Delta's woes Local travelers may pay more By James Pilcher Enquirer staff writer HEBRON - It was finally Cincinnati's turn to feel the pain. Delta Air Lines' announcement Wednesday that it was cutting 26 percent of its capacity at Cincinnati/Northern Kentucky International Airport - meaning the loss of up to 1,000 jobs - came after the airline had already closed one hub, in Dallas/Fort Worth, this year and considerably reorganized its other two hubs. Yet through each previous move, the Cincinnati hub was either spared or continued to grow. Now, however, the airline says it is cutting 157 departures out of its Cincinnati winter schedule, including direct service to nine destinations - mostly in the Southeast and all served by regional carriers. All told, that is about 24.7 percent of the seats on Delta or its regional carriers in and out of the airport. Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050908/BIZ01/509080305
September 8, 200519 yr Cuts may be first steps into Delta bankruptcy By James Pilcher Enquirer staff writer Airline industry analysts believe cuts by Delta Air Lines may be laying the groundwork for bankruptcy. Federal law changes Oct. 17, giving the carrier an incentive to file soon. On the surface, Delta Air Lines' cuts to local service and potentially to jobs at the Cincinnati/Northern Kentucky International Airport appear to be an attempt to stay out of bankruptcy. But many experts and observers say such moves could be just the opposite - a way to get the financially struggling airline better prepared for a Chapter 11 filing. "It is a whole lot better to do these things out of bankruptcy than when you are in court," says airline analyst Helane Becker with New York-based Benchmark Group. "In that scenario, if a company wants to do something like this, you have to get everyone to agree, including the creditors and the judge - and there is always someone who disagrees." Atlanta-based Delta, which operates its second-largest hub locally, has lost more than $10 billion in the last four years, and has publicly stated that bankruptcy is a distinct possibility. Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050908/BIZ01/509080307
September 8, 200519 yr Experts: Delta had to trim By James McNair Enquirer staff writer To the experts who follow the airline industry, Delta Air Lines' cutbacks at Cincinnati/Northern Kentucky International Airport were as obvious as dispensing with pillows and in-flight meals. Delta, which has flirted with bankruptcy all year, did not specify its estimated savings from the moves. But the news gave investors a reprieve from the ruinous circumstances that have caused Delta's shares to plummet from the $40 mark before Sept. 11, 2001, to roughly the cost of a bag of plane-cabin peanuts. Delta shares gained 10 percent to $1.23 in midmorning trading Wednesday before closing unchanged at $1.12. John Pincavage Jr., president of the aviation-consulting firm Pincavage & Associates in Westport, Conn., said Delta had little choice but to trim its most expendable operations. "When you're fighting for your life, all that makes a tremendous amount of sense," he said. "You're trying to conserve cash. You're going through your system with a fine-toothed comb and weeding out all the potential losers. Anything that's marginal has to go." Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20050908/BIZ01/509080312/1076/BIZ
September 8, 200519 yr Is move too little, too late for Delta? By Alexander Coolidge Post staff reporter Delta Air Lines is downsizing its Cincinnati hub and cutting up to 1,000 area jobs, but it might be too little too late for the near-bankrupt airline, experts say. It's not clear how much savings Delta will realize from the cuts, but it's doubtful it will be enough to keep it from filing for Chapter 11 bankruptcy, said Chris Lozier, an airline analyst with Morningstar in Chicago. The move could be a last-ditch attempt to avoid bankruptcy or, more likely, part of a broader restructuring that would continue in Chapter 11 court proceedings, Lozier said. Despite nearly completing a sweeping $5 billion restructuring plan announced last year, the company has continued to hemorrhage red ink. Though it eliminated Dallas as a hub and slashed thousands of jobs, pay and benefits, Delta grossly underestimated the price of fuel at $40 per barrel of crude oil this year. Instead, oil has hovered recently near $70 - costing Delta millions extra and erasing much of the cost benefits achieved elsewhere. As losses piled up to nearly $10 billion since 2000, Delta's depleting cash reserves are the only thing keeping Cincinnati's dominant carrier out of bankruptcy court. Analysts predict Delta's cash pile could shrink to the point it must file Chapter 11 as early as this fall. Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20050908/BIZ/509080374
September 8, 200519 yr Delta is gambling on its position here Competitors will eye market By Alexander Coolidge Post staff reporter Eliminating direct service to nine cities and trimming flights to dozens more could weaken Delta's hold on Cincinnati/Northern Kentucky International Airport as low-cost carriers continue to expand across the nation, industry analysts say. With Wednesday's announcement that it will eliminate 26 percent of its flights out of Cincinnati, Delta Air Lines is betting hard that it can cut costs here while maintaining its dominant market share. Delta will continue to have a commanding presence in Cincinnati, maintaining the airport as its No. 2 hub, which might dissuade low-cost carriers such as Southwest Airlines, AirTran and JetBlue from trying to gain a foothold here, said Chris Lozier, an industry analyst with Morningstar. But Lozier acknowledged Delta has avoided reducing flights in Cincinnati because that virtually invited competition. Full story at http://news.cincypost.com/apps/pbcs.dll/article?AID=/20050908/BIZ/509080372
September 9, 200519 yr Gee.... I wonder what happened to all those $$$$$ the airlines got after 9/11..... $18-Billion dollars? And Washington spent how much on passenger rail, local mass transit, waterways and other non-highway/aviation modes? And they say Amtrak is poorly managed? The airlines make them look like business geniuses. Sorry. Don't mean to rant, but here we are... four years later... and is our transportation system any better balanced in the way it is funded and developed? I think I just asked and answered my own question.
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