January 12, 200817 yr It will be interesting to see what happens and again I am very interested in the state's response - I do not know the numbers, but hopefully we can keep those international flights. From what I have seen we have a chance with London and Paris. I believe that both Delta and Air France make the transatlantic flight. Frankfurt, as a major European connection point, might survive. There are also very specific guidelines on flights overseas, and Delta had to obtain the rights for Cincinnati to those cities. I am not sure if those rights can simply be transferred to other US airports or not - it might be a case of use it or lose it. One thing to also keep in mind - if this happens it will only be the beginning. Just as we race to the final 15 banks in the country, we will probably end up with 3 or 4 airlines. This will be the first domino to fall, and the other carriers will be scrambling to the altar. This has the possibility of affecting hubs everywhere as the new maps are drawn.
January 12, 200817 yr There are also very specific guidelines on flights overseas, and Delta had to obtain the rights for Cincinnati to those cities. I am not sure if those rights can simply be transferred to other US airports or not - it might be a case of use it or lose it. Those routes will be, barring government regulation. Example, if Delta has a flight from cvg-lgw and delta goes belly up, continental can "buy" that "slot" from delta and request that the departing city be changed to CLE with government approval. Similar to what delta did when it bought slots to LHR from United - which came from pan am when they went bankrupt in the early 90s. Pan am going bankrupt, dismantled their hub in miami, allowing American to take over many routes in the carribean and grow into the dominant carribean hub in the US. Delta also bought routes and planes which allowed atlanta to grow (around the same time Delta also absorbed much of eastern airlines, which is how it got the shuttle; allowed Continental to build a hub in Newark and lastly why Boston is a "focus city" for Delta) and United bought international routes from JFK to Europe allowing them to grow JFK and ORD and creating "premium service" from JFK to SFO & LAX where it could connect to its already had strong trans pacific routes. When American absorbed TWA, most of its St. Louis international Flight went to ORD and a few to DFW. The JFK Flights had to be sold and I think United and Delta got most of those and Kansas City, a TWA hub was completely dismantled which allowed midwest airlines to expand and now lcc carriers have a presence there. Ok...back on topic... :-)
January 12, 200817 yr Since this is not a case of the airline going bankrupt and selling routes as in your examples, it goes back to the strategic direction of the hypothetical airline. It will depend on what the new Delta/United and/or Northwest decides to do with the hub. Let's hope we can keep some of those international flights.
January 12, 200817 yr St. Louis has lost its hub status as American finished its swallowing of TWA. Pittsburgh is no longer considered a hub for US Airways, who is basically in the process of abandoning that whole area. Yep, if anyone doesn't believe this ... roll over to urbanstl.com and read the bitching going on over there on why they don't have a major hub status while other cities similar in size do have one.
January 12, 200817 yr I'm just curious ... has anyone ever thought about how long we've been having this same discussion for years?
January 12, 200817 yr This discussion has the same feeling that one gets when discussing why the Bengals needed a new stadium and why the Reds can't compete in MLB. Cincinnati is on the small side with inadequate growth to get the investment of the high flyers like Charlotte and Atlanta, but too big to get ignored as is the case increasingly with places like Pittsburgh, Buffalo, and the like. These are the discussions were the worst aspect of Cincinnati's inferiority complex plays out, both in terms of the reality of Cincinnati's position and the imaginary place of Cincinnati in the national economy. The boosters believe Cincinnati still swings with the big boys and the pessimists (or "realists" as they like to called) argue that Cincinnati is in terminal decline will always lose to someone bigger and better. The truth is in between. As to NW and Detroit, the terminal decline of the Michigan economy has to hurt the continued viability of the size of hub Detroit is. Furthermore, with Toyota and Honda investing serious capital in the greater 250 mile belt around Cincy, I think this region has more growth potential than Detroit or really any of the Great Lakes towns.
January 17, 200817 yr If hub goes, will jobs? Delta Air Lines in merger talks BY ALEXANDER COOLIDGE | CINCINNATI ENQUIRER January 17, 2008 CINCINNATI - Local economic development and airport officials are anxiously watching from the sidelines as Delta Air Lines is in initial talks to merge with either of two rivals - a move that could mean the elimination of or serious cutbacks at the airline's hub at Cincinnati/Northern Kentucky International Airport. Scaling back or closing the hub would cut two ways. Such a move could lure a low-cost carrier to CVG, giving many consumers - particularly leisure travelers - relief from what government statistics show to be the highest average airfares in America. Yet scaling back or closing the hub also would result in the loss of hundreds or possibly thousands of jobs, as well as reduce the frequent service attractive to many businesses. Most, if not all, direct international service would likely be lost with the hub. Analysts believe that Delta's second-largest hub could wind up on the chopping block in the event the company announces a deal to combine with Northwest or United airlines. Rumors about Delta got confirmation Tuesday when the chairman of the House Transportation and Infrastructure Committee, U.S. Rep. James Oberstar, said Northwest officials told him about merger talks with the Atlanta-based carrier. Spokesmen at Delta, Northwest and United continued to be mum about whether talks are taking place.
January 17, 200817 yr Strictly looking at that map, it would seem to make more sense geographically speaking to shut down the Detroit hub over Cincinnati's. It would also seem like a given to shut down the Memphis hub.
January 17, 200817 yr Strictly looking at that map, it would seem to make more sense geographically speaking to shut down the Detroit hub over Cincinnati's. It would also seem like a given to shut down the Memphis hub. But Detroit's airport is new and huge. I doubt they'd want to give that up. Memphis' airport is small and old. I think that they would be better served to close Memphis and shift more flights to Dallas (or do they no longer operate a mini-hub out of Dallas?).
January 17, 200817 yr As to NW and Detroit, the terminal decline of the Michigan economy has to hurt the continued viability of the size of hub Detroit is. Furthermore, with Toyota and Honda investing serious capital in the greater 250 mile belt around Cincy, I think this region has more growth potential than Detroit or really any of the Great Lakes towns. I absolutely agree with this statement, and I think it is "realist" not at all a product of boosterism. Another thing that Cincinnati really has going for it vis-a-vis these other cities is the physical environment. We may not have an ocean but a few hills and a higher average temperature makes a world of difference compared to other Midwestern towns. This is where the city's main airport being owned by another county and located in another state really screws us. I don't know anything about how stuff gets done in Kentucky and I feel like the river acts as some sort of mental barrier (both ways). But really we are getting f-ed here by the ancient rules that govern air traffic and ownership. A low cost domestic carrier would be nice, but what we really need is a large international carrier, primarily European (but perhaps Asian, or both) who wants to break into the U.S. market. One thing to also keep in mind - if this happens it will only be the beginning. Just as we race to the final 15 banks in the country, we will probably end up with 3 or 4 airlines. This will be the first domino to fall, and the other carriers will be scrambling to the altar. This has the possibility of affecting hubs everywhere as the new maps are drawn. Exactly right. I'd be surprised if this Delta/Northwest merger actually pans out for either company. It's about positioning for this cartel of the future, not present economics.
January 17, 200817 yr So what do they want to do? Close hubs and make Atlanta Chicago and Minneapolis busier airports, which in-turn would cause MORE delays, which would pisses off more people then they already have? Business is something else. Sometimes they shoot their ownselves in the foot.
January 17, 200817 yr So what do they want to do? Close hubs and make Atlanta Chicago and Minneapolis busier airports, which in-turn would cause MORE delays, which would pisses off more people then they already have? Business is something else. Sometimes they shoot their ownselves in the foot. Mergers are only beneficial if you can successfully blend the two companies together and then eliminate redundancies. There appears to be redundancies in where the hubs are located if/when the two airlines merge. So to appease stockholders/investors they will look to cut costs as much as possible.
January 17, 200817 yr They are enormously growing the size of the company and then eliminating the duplicate positions/operations between the two companies. Essentially it is a matter of economies of scale.
January 17, 200817 yr Strictly looking at that map, it would seem to make more sense geographically speaking to shut down the Detroit hub over Cincinnati's. It would also seem like a given to shut down the Memphis hub. But Detroit's airport is new and huge. I doubt they'd want to give that up. Memphis' airport is small and old. I think that they would be better served to close Memphis and shift more flights to Dallas (or do they no longer operate a mini-hub out of Dallas?). Delta's dallas "mini-hub" was shut down prior to the bankruptcy Strictly looking at that map, it would seem to make more sense geographically speaking to shut down the Detroit hub over Cincinnati's. It would also seem like a given to shut down the Memphis hub. I highly doubt that NW would close a PROFITABLE FULL INTERNATIONAL HUB over regional hubs with little international traffic. MEM can go because the airport will be profittable off the back of an ENORMOUS FedEx cargo business.
January 17, 200817 yr Strictly looking at that map, it would seem to make more sense geographically speaking to shut down the Detroit hub over Cincinnati's. It would also seem like a given to shut down the Memphis hub. I highly doubt that NW would close a PROFITABLE FULL INTERNATIONAL HUB over regional hubs with little international traffic. MEM can go because the airport will be profittable off the back of an ENORMOUS FedEx cargo business. Unless CVG is determined to offer geographic, weather, traffic, operational, and/or business advantages over Detroit. Also, forecasts of growth potential could play a major role in such a decision. Detroit could go and CVG's role internationally could be boosted to accomodate this. When mergers like this are being bandied about, all options (no matter how unlikely they may seem), are definitely on the table.
January 17, 200817 yr I highly doubt that NW would close a PROFITABLE FULL INTERNATIONAL HUB over regional hubs with little international traffic. MEM can go because the airport will be profitable off the back of an ENORMOUS FedEx cargo business. I agree. If any of these mergers go through, particularly the Delta/Northwest merger, Cincinnati will lose most of its international traffic. I don't see it happening, but the local Ohio and Kentucky politicians need to step up with this one and kill any merger, or at least find a way to keep some international routes here, however that may be done. Losing those routes will seriously hurt the metro area, and really both states as well. Rochester, New York used to be home to Gannett, Xerox, Bauch & Lomb, and Kodak. Of those companies, only Kodak remains and from what people there have told me a major reason is the lack of international air travel. Mergers are only beneficial if you can successfully blend the two companies together and then eliminate redundancies. There appears to be redundancies in where the hubs are located if/when the two airlines merge. So to appease stockholders/investors they will look to cut costs as much as possible. Rando, I think you missed an article from The Enquirer. I remember reading something comparing the Delta operations with those of Northwest and United in the paper yesterday or today. I really feel this is about creating an atmosphere of potential for investors/stockholders, not cutting costs. Northwest and Delta don't have interchangeable fleets (I read this in yesterday's Enquirer). Fuel prices aren't going to be effected by this, nor are wages. A merger creates the appearance of big things happening, but that doesn't mean the underlying profitability is changing. Two unprofitable or semi-profitable airlines merging could easily create one unprofitable or one semi-profitable airline.
January 17, 200817 yr I really feel this is about creating an atmosphere of potential for investors/stockholders, not cutting costs. I agree...I wasn't sugessting that they would have a net cut in costs (sorry if that was what was interpreted), but rather once these mergers take place redundancies between the two are then eliminated. Hence the reason behind getting rid of a hub or two.
January 17, 200817 yr I don't see it happening, but the local Ohio and Kentucky politicians need to step up with this one and kill any merger, or at least find a way to keep some international routes here, however that may be done. I agree with that. Businesses love having the hub in Cincinnati, but your average voter just gets po'd that they have to drive to Columbus, Dayton, Louisville, or Indianapolis to avoid getting jacked on the airfare. My guess is that the politicians will sit this one out and pretend they don't have any sway, rather than associate themselves with the insanely high ticket prices the hub brings with it.
January 17, 200817 yr ^I don't think these guys give a damn about insanely high ticket prices that annoy the average voter. The only politicians who would care about this are ones who care about the region and it's access to world markets. Unfortunately the ones with any sort of power are all beholden to an administration that craps on localities in favor of nimble skipping corporations (like Delta). Boehner is the House Minority leader. As a West Chester Republican, he isn't going to do a damn thing about it. Chabot, Schmidt and Geoff Davis (NKY Republican congressman) won't do anything either (at least Schmidt and Davis have the excuse of being low ranking and recently elected). Voinovich and Brown aren't from the area and have little pull. Mitch McConnell is from the Louisville area and I think is the Senate Minority Leader or Minority Whip. He's not going to help. Gov. Strickland isn't going to try and do anything for an airport that isn't in his state, and the Kentucky state government is a mess. What's the last federally funded major public works project named after a local politician who repped the area? The Brent Spence Bridge?
January 17, 200817 yr Rando, I think you missed an article from The Enquirer. I remember reading something comparing the Delta operations with those of Northwest and United in the paper yesterday or today. I really feel this is about creating an atmosphere of potential for investors/stockholders, not cutting costs. Northwest and Delta don't have interchangeable fleets (I read this in yesterday's Enquirer). Fuel prices aren't going to be effected by this, nor are wages. A merger creates the appearance of big things happening, but that doesn't mean the underlying profitability is changing. Two unprofitable or semi-profitable airlines merging could easily create one unprofitable or one semi-profitable airline. I see the Delta/NW merger happening because of the back end. NW is in a partnership with KLM (AKA Air France-KLM Co.) and Delta is in an heavy agreement with Air France(AKA Air France-KLM Co). A merger of NW-KLM-Airfrance-Delta completes the circle of life. To add to that, Alitalia could possibly be purchased by "Air France-KLM". That is why I see CVG & MEM, being gutted or going away in favor of JFK & LAX build up by Delta and those are Air France and KLM international gateways. MSP & SLC might get a pass because of the heavy subsidies it receives to provide air support to cities/states in the big sky country...ie..the middle of nowhere.
January 18, 200817 yr A key item to remember is that Cincinnati's hub status isn't really sustained by main-line Delta flights, rather Cincy serves as the hub for the Delta Connection system (Comair, ASA, et al). Comair has had a rough 2000s but it remains CVG's biggest contribution to Delta. Doing a little Googling/Wikipedia-ing (which generally has pretty good stuff on the airline industry), it looks like Memphis is Northwest's primary regional carrier hub. I have to think the Cincinnati region beats Memphis for the regional market especially considering its proximity to the NE (which is where Delta uses the Cincy a lot) - small town Western New York, Pennsylvania, parts of the Mid-Atlantic and smaller cities along the Coastal SE. I could see Cincy losing even more mainline flights though keeping the most profitable internationals if we can grab more of the regional traffic from Memphis. Remember CVG no longer has a major freight airline which as mentioned above Memphis (and Louisville) both have.
January 18, 200817 yr City a pawn in airlines' chess game BY LISA BIANK FASIG | CINCINNATI BUSINESS COURIER January 18, 2008 If Delta Air Lines merges with another carrier, it likely would lead to the sale or dismantling of Comair and a wholesale reduction of local service, a scenario that would entwine every aspect of the local economy from housing to government financing. Delta is reportedly in merger talks with both Northwest Airlines and UAL Corp., operator of United Airlines. The carrier is said to be seeking a fast merger agreement - within two weeks. If a combination is sought, all of Delta's operations, including Comair and Delta's local hub operation at the Greater Cincinnati/Northern Kentucky International Airport, would fall to the scrutiny of corporate executives and bean counters. Their job would be to reduce expenses and eliminate overlapping operations. Under such circumstances, airline experts see a fairly bleak outcome locally, regardless of whether the target is Northwest or UAL. "In either of those cases, Cincinnati is gone as a hub. Gone, finished, done, not going to happen anymore," said Michael Boyd, president of Boyd Group Inc., an Evergreen, Colo.-based aviation consulting firm. "Cincinnati would fall out the bottom. It's unfortunate, but it would fall out the bottom." Hub Locations Major U.S. hub operations: Delta Air Lines • Atlanta • Cincinnati • Salk Lake City • New York (JFK) United Airlines • Chicago • Denver • Los Angeles • San Francisco • Washington, D.C. Northwest Airlines • Detroit • Minneapolis/St. Paul • Memphis, Tenn. Sources: Airlines
January 18, 200817 yr "If Delta merges with somebody, you can pretty much hang a 'For Sale' sign in front of that Comair terminal," said Boyd, who thinks a merger would benefit no one but the shareholders. For instance, he does not think there is even a buyer for Comair. "It's like the pope trying to sell the Vatican: Ain't nobody going to want it." Wow. What a surprise. I'm so glad public transportation routes are in the hands of these people.
January 18, 200817 yr If i was the Government i would say pay back the federal dollars that we paid you to bail you out before you do any mergers.
January 18, 200817 yr From a couple of other analysis floating around in the ether. It is also clear that the combined company rarely wins. The competitors usually do better. To be honest (a little) if they had to get rid of the Comair terminal how many of you would be sad as a practical consideration. You have a pretty decent airport if they just consolidated in Terminal Three and tore down the rest of the facilities there. The challenge for Cincy as everyone acknowledges is that Delta makes a lot of profit on Cincy tickets which disappear with the elimination of the hub, but the 'economies of scale' supposedly would replace that with greater volume flowing through the system. However, the real losers seem to be DAY (maybe CBUS with Skybus killing the competitors up there), LEX, and perhaps even Louisville and Indy with Cincy having a great set of runways and a decent quality terminal. Southwest, Midwest, maybe JetBlue and Airtran are suddenly see this as an underserved market. All those Dayton folks can drive down 75 rather than us heading up north.
January 18, 200817 yr However, the real losers seem to be DAY (maybe CBUS with Skybus killing the competitors up there), LEX, and perhaps even Louisville and Indy with Cincy having a great set of runways and a decent quality terminal. Southwest, Midwest, maybe JetBlue and Airtran are suddenly see this as an underserved market. All those Dayton folks can drive down 75 rather than us heading up north. Interesting points.
January 19, 200817 yr I'm an international traveller that never goes through CVG directly for international flights. What I care more for is that they fix the broken system of flights that they currently have. Some shocks to the local economy will happen but that'll be good for getting the politicians off their asses.
January 21, 200817 yr Well here is the first of what is hopefully more political push-back. Davis worried about Delta merger BY ALEXANDER COOLIDGE | CINCINNATI ENQUIRER January 21, 2008 U.S. Rep. Geoff Davis has expressed concern over reports of merger talks between Delta Air Lines and Northwest Airlines and is calling for a rigorous review. The potential combination hinted at by both carriers threatens the future of Delta's hub operations at Cincinnati/Northern Kentucky International Airport in Hebron, which employs more than 7,000 local workers. Davis, R-Hebron, noted in a statement Friday that Delta officials strongly opposed a merger last year when it successfully staved off a hostile takeover attempt by US Airways. Delta has changed chief executives since that fight. "Any potential merger should undergo the same thoughtful scrutiny as the U.S. Airways proposal," he said. Davis noted a 2005 University of Cincinnati study showed the airport and its hub pumps $4.5 billion each year into the local economy. "Delta has emerged from bankruptcy as a strong, independent carrier and a continued asset to the Kentucky and the national economy," he said. "I am committed to protecting our most significant economic engine, our hardworking Delta employees and the traveling public."
January 21, 200817 yr This is interesting...even though we're mainly focusing on Cincinnati; Atlanta is sweating some serious bullets as well: Delta gives Atlanta big lift For decades, airline has linked city to the world, and if merger makes it pack its bags, the loss could be devastating BY LEON STAFFORD | ATLANTA JOURNAL-CONSTITUTION January 21, 2008 ATLANTA - The Georgia Aquarium got the hype, the city's tagline "Every day is an opening day" prompted debate, and the hip-hop-tinged "ATL" anthem stirred controversy. Delta Air Lines never got any of these headlines, but hospitality leaders say when it comes to these recent efforts and others to market the city, few partners were as crucial as Atlanta's hometown carrier. That's because few local companies touch as many people around the country and the world. When the branding campaign kicked off in late 2005, Delta ran Atlanta promotional videos on some flights to the city, the leaders said. The carrier also dedicated almost an entire issue of its Sky magazine to stories about Georgia's capital. So the hotel and branding community leaders are closely watching reports that the carrier could merge with Northwest or United airlines, which they say would have an immediate impact on the city's $11.4 billion convention and tourism industry. "Delta is critical to all our strategies," said Melinda Ennis-Roughton, executive director of Brand Atlanta, the group tasked with helping to create an image for the city. The company's brand is closely associated with Atlanta, and as it moves into more international markets it takes the city's name with it, she said. "Delta is the conduit, if you will, not only to the rest of the country, but to the rest of world," Ennis-Roughton said.
January 21, 200817 yr ^Geoff Davis is stepping up? I'm still skeptical he'll get anything done. He ought to try and scare a couple his Georgia buddies in the Republican Congressional Caucus.
January 23, 200817 yr I met a lady the other day that worked for Comair and I asked her about the merger talk and she laughed and said: "We've been talking about this for 13 years."
January 25, 200817 yr Unions have merger voice Pilots, other workers could help or hurt WIRE & STAFF REPORTS | CINCINNATI ENQUIRER January 25, 2008 Now that Delta and Northwest airlines appear to be in formal discussions about a merger, experts say labor unions will play a pivotal role in any merger deal - so much so that a courting airline should be wooing not just a company, but its unions, too. "A union can provide key support to make one deal happen and one deal go away," said Michael LeRoy, an airline expert at the Institute of Labor and Industrial Relations and the College of Law at the University of Illinois at Urbana-Champaign. "If you have a union that is going to sit by idly and watch disgruntled members not appear for flights, that's a failed deal from the get-go." Debate has grown in recent days about how consolidation would affect carriers. Some speculate that the marriage of a union airline with a mostly nonunion carrier - as is the case with Northwest and Delta - could force the union out because airlines are looking for cost savings.
January 27, 200817 yr Governors push to keep Delta hub Ohio, Kentucky brace for possible airline merger Sunday, January 27, 2008 - 3:39 AM By Marla Matzer Rose, THE COLUMBUS DISPATCH Persistent rumors about consolidation in the airline industry are causing a ripple that few can ignore. The biggest buzz surrounds reports that Delta Air Lines is looking to merge with either Northwest or United airlines. These reports resonate in the state capitols of Ohio and Kentucky. The two states have a lot at stake if such a merger should occur, as speculation mounts that the Cincinnati/Northern Kentucky International Airport, where Delta has a hub, would be a likely candidate to lose service from Delta as part of cost-cutting moves. Gov. Ted Strickland and the Ohio Department of Development have said they are willing to help in the effort to keep Delta's hub in northern Kentucky, where the Cincinnati airport is based. The governor is "personally committed" to trying to keep the Delta hub, spokesman Keith Dailey said last week. Kelly Schlissberg, a representative for the Ohio Department of Development, said her department is "in touch with the company and is absolutely willing and able to work with Delta on anything it can to help the company keep its hub in Cincinnati, if that is what the company wishes." The fact that the airport is across state lines doesn't change its impact on Ohio, Schlissberg said. "Delta is an extremely important company to Ohio, and the (airport) is a great asset to Ohio's economy," she said. "It's universally recognized as a regional asset and important to both Kentucky and Ohio." Kentucky Gov. Steve Beshear was quoted last week in published reports as saying he is "increasingly disturbed" by reports of Delta merger talks and has contacted Delta and is offering "help and … support in any way possible" to keep hub operations at the airport. Beshear said he would try to enlist Strickland in the effort. Full story at http://www.dispatch.com/live/content/business/stories/2008/01/27/airline_mergers.ART_ART_01-27-08_D1_24957SP.html?sid=101
January 27, 200817 yr Delta and CVG can kiss my ass. I'm trying to book a one-way ticket to SF. Non-stop from CVG: almost $500. From Dayton (with a layover at CVG): $107.
January 27, 200817 yr Delta and CVG can kiss my ass. I'm trying to book a one-way ticket to SF. Non-stop from CVG: almost $500. From Dayton (with a layover at CVG): $107. Thats the price you pay, to live in a "hub" city. I know it doesn't make sense, but departing from a hub (in addition, there is no competition on that route) and buying a oneway ticket is ridiculously expensive.
January 27, 200817 yr Delta and CVG can kiss my ass. I'm trying to book a one-way ticket to SF. Non-stop from CVG: almost $500. From Dayton (with a layover at CVG): $107. Damn...$107 is a great price.
January 27, 200817 yr Delta and CVG can kiss my ass. I'm trying to book a one-way ticket to SF. Non-stop from CVG: almost $500. From Dayton (with a layover at CVG): $107. Thats the price you pay, to live in a "hub" city. I know it doesn't make sense, but departing from a hub (in addition, there is no competition on that route) and buying a oneway ticket is ridiculously expensive. Does anyone else get the feeling that many of the airline's problems could be resolved by straightening out their ridiculous pricing system? Using the example above, a lot people from Cincinnati will drive to Dayton to save $400. If you get enough people to make a 1 hour drive to a secondary airport, only to connect to the hub airport that they drove away from to begin with, you're artificially creating demand in the secondary airport! If the pricing between Cincinnati, Dayton, Columbus, Indianapolis, Lexington, & Louisville wasn't so screwed up, you could have less flights connecting through CVG because Cincinnatians wouldn't be driving to those nearby cities to take advantage of the savings. And if CVG were the cheaper airport, people would be driving to the Delta hub for flights instead. Fewer flights means less overhead and higher profits. Honestly, shouldn't airlines be trying to encourage people to fly in and out of hubs instead of through them?
January 28, 200817 yr ^These are some great questions. It does seem bizarre and wasteful to me. But I suspect that the premium that Delta gets to charge at it's hub is worth it for the people who are willing to pay it. It's not much different from the experience of purchasing a new car. It would probably be easier for a manufacturer to make automatic windows standard (and floor mats and cruise control as well) but they will end up making more money by charging for these add-ons that most people want. The only difference is that the nation's airways are a public good.
January 28, 200817 yr Delta talks worry Congress BY MALIA RULON | CINCINNATI ENQUIRER January 28, 2008 WASHINGTON – A merger between Delta Air Lines and either Northwest Airlines or United Airlines hasn’t even been announced, but talk is already starting to swirl around Capitol Hill. Lawmakers don’t officially have a role in the regulatory process concerning mergers – that is handled by the Justice Department’s Antitrust Division. But the House and Senate Judiciary committees have oversight of the Justice Department, giving them the ability to investigate and examine any proposed deals or antitrust issues. In that capacity, their opinion can influence financial backers and thus have a big effect on whether the deal moves forward. House Judiciary Chairman John Conyers, D-Mich., and Rep. Jerry F. Costello, D-Ill., chairman of the aviation subcommittee, are reportedly considering hearings – if or when a merger is announced. Rep. John Mica of Florida, the top Republican on the House Transportation and Infrastructure Committee also said publicly that he wants hearings on any proposed deal. Meanwhile, Greater Cincinnati and Northern Kentucky’s lawmakers are bracing for the fight.
January 30, 200817 yr CVG fares stay highest BY ALEXANDER COOLIDGE | [email protected] At a average $576 per roundtrip, airline tickets in and out of the Cincinnati/Northern Kentucky International Airport were once again the nation’s most expensive and fastest growing in the third quarter of 2007, a new government report said. Local air fares were more than $100 more than the nation’s No. 2 costliest airport in Anchorage, Alaska, which averaged $467 per ticket. Airfares at CVG increased 12.6 percent from the same quarter in 2006. Nationally, average airfares dipped 0.8 percent for the quarter to $328, according to a survey released today by the Bureau of Transportation Statistics. Local passengers departing the Hebron airport have long decried sky-high airplane tickets that are blamed on its status as a hub for Delta Air Lines. Average fares at nearby airports, although they offer considerably less service and fewer direct flights, were lower, the new report showed. One or more low-cost carriers serve the four airports. The averages for the third quarter were: * Dayton – $333 * Columbus – $277 * Louisville – $315 * Indianapolis – $306
January 31, 200817 yr Minnesota, Ohio, Kentucky, and Georgia all now have their politicians trying to block this merger from going through. Lawmakers also fear about the repercussions that this may have on the airline industry with other potential larger mergers - and how that will affect the consumers in the long-run.
January 31, 200817 yr Average fares at nearby airports, although they offer considerably less service and fewer direct flights, were lower, the new report showed. The averages for the third quarter were: * Dayton – $333. * Columbus – $277. * Louisville – $315. * Indianapolis – $306. One or more low-cost carriers serve the four airports. Can you imagine what a fast and convenient high speed rail link would do for all of these airports if they were connected (+ Cleveland)?
January 31, 200817 yr A Delta-Northwest merger would shift strength of hubs By Jim Tharpe The Atlanta Journal-Constitution Published on: 01/31/08 More international flights from Atlanta. A smaller role for the Memphis airport and a bigger one for airports in Detroit, Salt Lake City and possibly Minneapolis. Those are just some of the implications if Atlanta-based Delta Air Lines merges with Minnesota-based Northwest Airlines, a marriage many analysts think is likely to happen soon, even as some politicians have vowed to vigorously oppose it. A Delta-Northwest merger would create the nation's largest airline — possibly the biggest in the world — and could have long-range consequences for many existing hubs as well as routes now controlled by the two carriers. "It would truly, truly be 'THE' U.S. global carrier," said Minnesota-based airline consultant Terry Tripper. "It would be No. 1 to Europe. It would be very close to No. 1 to Asia. And it would be very big in Latin America, Mexico and the Caribbean." Full story at http://www.ajc.com/business/content/business/delta/stories/2008/01/31/hubs_0131.html
January 31, 200817 yr ^That is fantastic to hear if it is indeed true. I could go for the loss of a few regional flights as long as we could keep our international ones.
February 1, 200817 yr I hope we hear something soon. It's starting to sound better for Cincy. We have to keep our guard up until something concrete is put out though.
February 2, 200817 yr Delta can rot. The day they quit their bullsh!t service excuses here in the name of "convenience" is the day that I once again can travel via my local airport. Until then, I'd rather drive 2 hours to pay twice as much for an airline other than Delta. They will not see a penny of mine. (yes, that is steam coming out of my ears)
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