March 20, 200817 yr And Toledo is only served by CVG now. That is incorrect. Actually, I'm not sure what you mean by "only served by CVG"? American flies to Chicago Continental flies to Cleveland Delta flies to Covington Northwest flies to Detroit.
March 21, 200817 yr Is TOL closer to DTW than CAK/YNG to CLE?! Where's commuter rail when you need it?!
March 21, 200817 yr It is about 45 miles from West Toledo to DTW and 15 miles to TOL. The key is that DTW is on the SW side of DET so it is an easy trip up 75 to 75, whereas TOL is off in the middle of a cornfield.
March 21, 200817 yr Is TOL closer to DTW than CAK/YNG to CLE?! Where's commuter rail when you need it?! Up until about 5 years ago there was daily CLE-CAK service on CAL. Talk about a commuter rail flight! :)
March 28, 200817 yr Northwest still wants Delta Executives at Northwest Airlines have reportedly asked to renew merger talks with Delta Air Lines, but any deal would still likely require approval by unionized pilots. The Wall Street Journal, citing an unidentified source, reported that Northwest proposed moving ahead with the long-discussed deal but also suggests offering pilots less generous terms than previously offered. Speculation of merger talk died out recently after the pilots' unions failed to agree on plan to integrate their seniority lists. But since every news report is based on unidentified sources, it is difficult to test the veracity of the information. The airlines have not commented. "Basically, unless Delta management has a change a heart, I don't think they're going to do anything without the support of their pilots," Calyon Securities analyst Ray Neidl told Reuters. "It shows that people don't want it to die and they'll keep trying things, but I don't think it puts us any closer." If the two do merge, as has been reported for several months, their operations would form the world's largest airline. Delta (NYSE:DAL) is the third largest now, and Northwest (NYSE:NWA) ranks fifth. Delta operates its second-largest hub at the Cincinnati/Northern Kentucky International Airport. Full story at http://cincinnati.bizjournals.com/cincinnati/stories/2008/03/24/daily56.html?surround=lfn
April 4, 200817 yr New pact could bring gust of change to Cincinnati air traffic BY LISA BIANK FASIG | CINCINNATI BUSINESS COURIER April 4, 2008 Few changes to international travel might affect local airport traffic like letting a French jet fly to Cincinnati directly from London. With the new Open Skies pact agreed upon by the European Union and the United States in late March, U.S. airlines are free not only to fly anywhere into Europe from any point of the U.S. - including Louisville or Columbus - but European airlines are clear to travel from anywhere in their continent to the states. This means a host of foreign carriers now can fly directly into Cincinnati, and vice versa. To wit: Air France acted upon the agreement immediately and began flying from London to the U.S., and Ryanair, a low-cost Irish carrier, said it wants to fly to North America as well. This is expected to lead to a rise in the number of carriers on international routes, and possibly from the Cincinnati/Northern Kentucky International Airport, which is dominated by Delta Air Lines. That might happen, but don't start banking on fire-sale fares to Rome. Several factors, from record-high fuel prices to the premium travelers are already willing to pay for long-distance seats, could limit price pressure, experts said.
April 4, 200817 yr ^ Well that's certainly unexpected. Not necessarily big news, but a pretty cool idea nonetheless.
April 8, 200817 yr I hope that someone in the Mayor's office in Cincinnati or Covington is trying to figure out a way to use these new developments to CVG's advantage.
April 8, 200817 yr I'd be surprised if Mallory wasn't already working on something. Callery, though? Tough to say. I'd expect that NKY Vision 2015 is all over this as well, which is probably even more important.
April 11, 200817 yr Delta strikes tentative pilots deal that will let Northwest merger proceed By Mary Jane Credeur and Mary Schlangenstein Bloomberg News http://www.sltrib.com/business/ci_8885555
April 14, 200817 yr Reports: Delta, Northwest merger close April 14, 2008 | CINCINNATI BUSINESS COURIER ATLANTA - Delta Air Lines Inc. and Northwest are close to announcing a merger that would create the world's largest airline, several national media sources reported late Sunday. The reports all cited anonymous sources close to the situation. The sources also noted issues remain with pilot negotiations. But an official announcement apparently awaits the approval of the boards of both airlines and could come as soon as Tuesday. The Wall Street Journal reported in its Monday online edition that Delta (NYSE: DAL) was still trying to reach an agreement with its pilots on a new contract that would allow the airline more flexibility in a merger. Meanwhile, pilots at Northwest (NYSE: NWA) met near the airline's Minneapolis-area headquarteres and issued a statement that they expect any merger "must clearly be in the interests of NWA pilots, customers and employees," the Journal said. The Wall Street Journal also placed Northwest's value at about $3 billion, down from $4.6 billion 10 weeks ago, due to the deteriorating market, driven by high fuel costs, that have caused several smaller airlines, including Columbus-based Skybus, to shut down in recent weeks.
April 15, 200817 yr BOOM. DONE. FINISHED! Delta, NWA form No. 1 airline BY ALEXANDER COOLIDGE | [email protected] In a $17.7 billion deal, Delta and Northwest airlines announced tonight that they would join forces to create the world’s largest air carrier. The two companies said the merger is necessary with today’s soaring fuel prices that have forced four competitors to shut down or file bankruptcy in the last two weeks. The new airline will employ roughly 75,000 combined workers, generate an annual $35 billion in revenue and operate nearly 800 aircraft that fly to 390 destinations in 67 countries. Despite some predictions by analysts, the airlines vow not to close any hubs – including Delta’s second-largest at the Cincinnati/Northern Kentucky International Airport. The airlines do expect to wring $1 billion of combined cost savings and additional revenues from the deal. More at http://www.enquirer.com
April 15, 200817 yr Email from NWA: As a valued Northwest Airlines customer and WorldPerks® member, I wanted you to be among the first to hear that we have announced a merger with Delta Air Lines. Subject to regulatory review, our two airlines are joining forces to create America’s premier global airline which, upon closing of the merger, will be called Delta Air Lines. By combining Northwest and Delta, we are building a stronger, more resilient airline that will be a leader in providing customer service and value. Our combined airline will offer unprecedented access to the world, enabling you to fly to more destinations, have more flight choices and more ways than ever to earn and redeem your WorldPerks miles. You can be assured that your WorldPerks miles and Elite program status will be unaffected by this merger. In addition, you can continue to earn miles through use of partners like WorldPerks Visa®. And once the new Delta Air Lines emerges you can look forward to being a part of the world’s largest frequent flyer program with expanded benefits. The combined Delta Air Lines will serve more U.S. communities and connect to more worldwide destinations than any global airline. Our hubs – both Delta’s and Northwest’s – will be retained and enhanced. We will be the only U.S. airline to offer direct service from the United States to all of the world’s major business centers in Asia, Latin America, Europe, Africa and around North America. Both airlines bring tremendous strengths to this new partnership. Our complementary service networks form an end-to-end system that is truly greater than the sum of its parts. This is a merger by addition, not subtraction, which means all of our hubs – both Northwest’s and Delta’s – will be retained. In addition, building on both airlines’ proud, decades-long history of serving small communities, we plan to enhance global connections to small towns and cities across the U.S. All of these positive benefits of our combination mean that we can: Offer a true global network where our customers will be able to fly to more destinations, have more schedule options and more opportunities to earn and redeem frequent flyer miles in what will become the world’s best and most comprehensive frequent flyer program. Continue to serve our current roster of destinations and to maintain our hubs in Atlanta, Cincinnati, Detroit, Memphis, Minneapolis/St. Paul, New York, Salt Lake City, Amsterdam and Tokyo. Improve our customers’ travel experience, through new products and services including enhanced self-service tools, better bag-tracking technology, more onboard services, including more meal options, new seats and refurbished cabins. While we work to secure approval of our merger, which may take up to 6 to 8 months, it will be business-as-usual at both airlines. We will continue to operate as independent airlines and the people of Northwest will remain focused on providing you with the very best in safe, reliable and convenient air travel. At the same time, both airlines will be planning for a seamless integration of our two airlines, one that delivers to you the enhanced benefits that will earn – and retain – your preference. As we work through this process, we will keep you informed at every step along the way. Thank you for your business and we look forward to serving you on your next Northwest flight. Sincerely, Bob Soukup Managing Director, WorldPerks
April 15, 200817 yr Go to the Minneapolis Star-Tribune's web site and take note that the people in Minny have the same concerns about losing a hub as we do. Do you really think they are going to operate NINE hubs??? This is nothing more than a political move. Once they get through the governmental review, then they will slash and burn hubs - guaranteed.
April 15, 200817 yr I couldn't agree more. I worked for a company that merged with another. "No one will lose their job" and no one did, until one year later.
April 15, 200817 yr This is pretty treacherous territory for our hub. If we can somehow survive this round, it will be safe for a long time. As others have mentioned, there is concern they will close or at least downsize. We know Delta is not going to come right out and mention anything about cutting jobs to help gain government approval. I do know this would affect my company as we do a lot of travel, and I certainly like having non-stop to Paris, London, Frankfurt, Rome etc. If this goes through I guess we will know in 6 months to a year what the new airline's intentions are. Historically, besides the ridiculous fares, Delta has been good to our regional economy, and it seems they had the upper hand on this and will retain the HQ - maybe that history will count for something. If poor financial performance continues, our risk goes up, but if they stabilize they are more likely to live up to their promise of a "merger by addition". Who's next? The wave is coming.
April 15, 200817 yr Read the web site www.newglobalairline.com very closely. Go to the "good for our communities" section and read about the hubs. Read between the lines. All of the other hubs are mentioned as remaining as largest hubs. CVG is described as being "a vital part of the combined network." Memphis is going to have extensive domestic and international flights and will serve as one of the combined carriers largest hubs. No need for DWT, ATL, MEM and CVG. My prediction: CVG will only be a regional carrier hub - serving small cities. Probably will cut about 50% of the mainline service. That's my guess. Big winners here are ATL, MEM, SLC and DTW.
April 15, 200817 yr One big word of caution, the congressman from MN who all but caused American to shut down last week is talking about re-instituting airline regulation. I can't imagine they can get this done and okayed by November. Oberstar will have a big say on whether this goes through and since Northwest is dominant is the Upper Midwest, well we'll see. CVG could be the hub for the regional airlines, perhaps Mesaba and Comair combine? You'd keep a few international flights, because all of those regional folks aren't going to want two transfers to get overseas. but I'd agree that CVG will lose its Delta hub status when its over. It will keep big jets to the key big cities who are flowing out of the regionals but that's about it (how much more is it really right now?) Getting Minnesota to go quietly will be a challenge, no doubt. It will also be interesting to see how the shrinkage of landings in NYC airspace effects these plans along with the open skies that should come online in a year or two. This would allow more free flowing competition by European carriers into the US. The main overseas local corp is P&G, Kroger and Federated would still be served well by a reduced hub. I don't know about the chemicals and flavor industries.
April 15, 200817 yr I highly doubt CVG will be have its hub status completely revoked by the combined carriers. As it is, the CVG hub has to make a lovely profit for Delta, since they control upwards of 90% of the market. They would be foolish to dwindle service to the point that low cost carriers could come in and errode the yield they see from the market. If the combined Delta cuts anything from CVG, it will be to cities with little or no Origin & Destination traffic or high yield feed and/or frequency reductions to avoid redundancies in other hubs in an attempt to maximize O&D traffic. The one hub I can't for the life of me see them keeping is MEM. With ATL so close, that hub is completely redundant. They could probably shave it down to a couple of choice O&D markets and maybe maintain a flight to AMS without giving away too much so as to bring in an onslaught of low fare competition.
April 15, 200817 yr Go to the Minneapolis Star-Tribune's web site and take note that the people in Minny have the same concerns about losing a hub as we do. Do you really think they are going to operate NINE hubs??? This is nothing more than a political move. Once they get through the governmental review, then they will slash and burn hubs - guaranteed. I totally agree. I also, see cities with "point-to-point" service (Indi, Seattle, LA) being affected. I don't see Salt Lake City, Memphis or CVG in the future. I even think the government will look at the "proposed" larger hubs. There will be concessions. The worldwide HQ in Atlanta and the Executive Office in Minneapolis, made me chuckle. :roll: How in the hell will that work?! If the exec. office remain in Minn., I see them cutting the hub. I want to see how this new company is going to be able to pay back the ton of money the state of Minnesota gave NW. Regulation is going to be a bitch. 6-8 months?? Yeah, right. Ask, US air and America West. Ask KLM and Air France.
April 15, 200817 yr from newglobalairline.com A Win for Communities Cincinnati Delta and Northwest are joining together to create a new stronger airline that will be a win for employees, customers and communities. Cincinnati will continue to be an important Midwest regional hub in the merged carrier’s growing international network. Delta has deep roots in Cincinnati. Delta was the first to introduce jet service to Cincinnati in 1960, providing the catalyst for significant growth in the region. Delta has served Cincinnati since 1941 and has operated a major hub here since 1986. Together, Delta and Northwest currently employ over 7,000 residents of Ohio and Kentucky and generate annual economic benefits of more than $6.5 billion for Ohio and more than $4.5 billion for Kentucky. Cincinnati will continue to be a vital part of the merged network. Cincinnati is home to a major reservations center. The merger of Delta and Northwest will mean more long-term, stable employment opportunities. Employees in the Cincinnati area and throughout Ohio and Kentucky will benefit from increased long-term job security at a more resilient airline better positioned to weather the industry’s traditional boom and bust cycle. Employees provided with an equity stake in the combined airline. There will be no involuntary furloughs of frontline employees or hub closures as a result of this transaction. Delta and Northwest employees will enjoy reciprocal pass privileges on both airlines’ worldwide networks, beginning as soon as possible during the regulatory review process. Existing pension plans for both companies’ employees will be protected. Frontline employees of both airlines will be provided seniority protection through a fair and equitable seniority integration process. The combined company will offer service to more destinations worldwide. The merged airline will connect Cincinnati and the entire Ohio Valley to the world. By combining Northwest’s leading positions in Canada and Asia with Delta’s strength across the Caribbean, Latin America, Europe, the Middle East and Africa, customers and communities will benefit from enhanced access to destinations worldwide. More convenient access will provide Cincinnati and the surrounding areas with potential opportunities for economic development, new investment and increased tourism. The combination of Delta and Northwest will not change the competitive environment for customers in Cincinnati. Competition among carriers in the Cincinnati area will continue to thrive. Delta has 383 peak day departures from Cincinnati, while Northwest currently has only 11, demonstrating that the companies have complementary route networks with very little overlap. Two discount carriers serve the Cincinnati area.
April 15, 200817 yr "Competition among carriers in the Cincinnati area will continue to thrive." Continue to thrive? When did competition start thriving at CVG?
April 15, 200817 yr All this "fluff" is to calm the community. What they "say" and what will "happen" during the government agencies review of the merger are two different things. All those hubs will not survive as they are today and I have a suspicion that both airlines will have to sell or cut routes or services. I.E. the delta shuttle. Today's "announcement" will not be the same as the "final" merger.
April 15, 200817 yr Today's "announcement" will not be the same as the "final" merger. Yup, I for one can't really see how both Detroit and CVG can survive as hubs as they are now. My one hope is that perhaps there will be some actual competition at CVG so folks don't have to drive 50 - 100 miles to save a few hundred bucks, only to be connected through the airport they avoided to get those savings. Pie in the sky, but oh well...
April 15, 200817 yr I don't see DTW being affected. It's an amazing facility AND has a Trans Pacific flight route that in unmatched. CVG & MSP to close to DTW MEM to close to ATL STL to close to LAX (DAL starting to build up there) Somebody gets chopped! I think MSP sees a reduction because they got to keep the "executive office" so that was a compromise. But they continue regional flights to the upper portions of the country, but lose international routes. Places were neither airline has a hub but significant regional O/D operations BOS LGA DCA JFK LAX (DAL) IND (NWA) FLL (DAL) SEA (NWA) There will be cuts. I wouldn't be surprised if they had to sell the shuttle and cut trans- Atlatic flights (there will be over lap at JFK/EWR) or request that what routes they are not required to sell to another airline be moved to ATL and DTW. Slotted/Government approved airports (DCA/JFK/EWR/LGA) will they have to give up slots and/or cut frequencies? Lets not even get into: – Frequent Flyer programs – Lounges – Code sharing – Global Alliances – Real Estate (multiple terminals at airports Example: LGA/JFK/EWR the delta shuttle operates from a differnt term than DAL & NWA) – Logistics (moving to combine gates/operations at airports)
April 15, 200817 yr Delta has deep roots in Cincinnati. I'm sure that fact will weigh in heavily in the decision making. :roll: Ask the poster above me about that one. 11 hubs? 3 just in the midwest?
April 15, 200817 yr From the Biz Courier: Delta, Northwest announce merger agreement Business Courier of Cincinnati The airlines announced jointly at 8 p.m. Monday a merger agreement that will keep the headquarters of the new Delta (NYSE: DAL) in Atlanta, will cause no hub closures and will help the carriers weather the pressures of rising fuel costs. The new airline will have some $35 billion in revenue and about 75,000 employees. It will run a fleet of 800 airplanes that will provide access to more than 390 destinations in 67 countries. Atlanta-based Delta operates a hub at the Cincinnati/Northern Kentucky airport. Eagan, Minn.-based Northwest offers about 30 daily flights from the airport. The stock-swap deal will give Northwest (NYSE: NWA) shareholders 1.25 shares of Delta for each share of Northwest. The company expects one-time cash costs of no more than $1 billion to integrate the two airlines. But the deal is expected to generate more than $1 billion in annual revenue and cost cuts from more effective aircraft utilization, a more comprehensive and diversified route system, reduced overhead and improved operations. Delta CEO Richard Anderson will remain CEO of the new Delta, Delta Chairman Daniel Carp will become chairman of the new board, Northwest Chairman Roy Bostock will become vice chairman and Delta's Ed Bastian will be president and chief financial officer. The new Delta board will have 13 members -- seven from Delta's board, including Anderson, and five from Northwest's board, including Bostock and Doug Steenland, the current Northwest CEO. One director will come from the Air Line Pilots Association. Full story at http://www.bizjournals.com/cincinnati/stories/2008/04/14/daily13.html
April 15, 200817 yr "Internal Memorandum Date: April 14, 2008 To: All U. S. - Based Delta Employees From: Richard Anderson and Ed Bastian Subject: DELTA AND NORTHWEST MERGE: MAKING OUR DELTA A STRONGER DELTA Today we announced that Delta and Northwest have reached an agreement to merge, creating America's premier global airline. The merger maintains each of the commitments we made to you in our February 26 memo regarding Delta's terms for consolidation: the company is named Delta, headquartered in Atlanta; the seniority of our people is protected; the existing pension plans of our employees and retirees are maintained; the network is expanded; our plans for international growth are strengthened and accelerated; and, most importantly, there is even greater job security with more career opportunities for our people. I will be the Chief Executive Officer and Ed will remain President and CFO. Dan Carp, the Chairman of Delta, will be the Chairman of the Board of the combined company. In addition to World Headquarters in Atlanta, the combined company will have executive offices in Minneapolis/St. Paul, New York, Amsterdam, Paris and Tokyo. Together with the worldwide Northwest team, we will preserve a winning culture and spirit - the "Delta Difference" - that defines who we are. We are pleased about what this transaction will mean for the people of Delta and Northwest, as employees will directly participate in the growth and future success of the combined company. The transaction allows us to make the following additional commitments to our U.S.-based employees: Non-pilot employees of Delta and Northwest will participate in the benefits of the combined airline by receiving a 4 percent equity stake in the new company upon closing. The stock will be allocated based upon relative payrolls of the companies and your individual earnings. Upon closing of the merger, Delta frontline employees will receive pay increases that will continue our progression toward industry-standard pay for all workgroups by the end of 2010. There will be no involuntary furloughs of frontline employees or hub closures as a result of this transaction. Delta and Northwest employees will enjoy reciprocal pass privileges on both airlines' worldwide networks, beginning as soon as possible during the regulatory review process. Delta pilots will participate in the benefits of the combined airline through a new four- year agreement that facilitates the integration of the carriers and realization of the combined revenue synergies. With respect to Northwest pilots, Delta is committed to use its best efforts to reach a combined Delta-Northwest pilot agreement, including resolution of pilot seniority integration, prior to the closing of the merger. In the past, we have said that we were not interested in doing a deal for the sake of doing a deal. Our need to respond to the pressures of dramatically rising fuel costs and a softening U. S. economy drove us to take a closer look at all options to strengthen our future. In the last few weeks, five U. S. carriers have filed for bankruptcy, four of which are being liquidated. We believe that consolidation in the airline industry is inevitable and we want to control our future. Combining our companies creates an airline with the size, scale and global presence to weather economic downturns and compete long-term in the global marketplace. We are beginning another chapter in Delta's distinguished history, which has included the acquisition of four large airlines - Chicago and Southern in 1953, Northeast in 1972, Western in 1987 and PanAm in 1991. These acquisitions define who we are today. We wanted to be a first mover and choose the very best partner that would preserve the Delta culture and create a promising future for you. Northwest is an ideal choice for Delta because it is an industry leader in key complementary international markets with employees who are committed to winning in the global marketplace. As a combined carrier, we will be the #1 airline in the United States. In addition, we will be the #1 U. S. carrier to Japan; #1 U. S. carrier across Europe; #1 U. S. carrier in Africa; #1 U. S. carrier in the Middle East and India; #2 U. S. carrier in Asia; and the #2 U. S. carrier in Latin America. This merger also strengthens the SkyTeam alliance and secures its leadership position in an increasingly competitive global airline environment. It ensures that the combined company will have the resources to speed product development and maximize the benefits of a larger network. Combining Delta and Northwest will take time and a thoughtful integration plan. It is expected that the regulatory review process will be completed later this year. During this time, a detailed integration plan will be created by a committee made up of leaders and employees from both airlines. It is the goal of Delta to harmonize the pay and benefits of all of the workgroups over time. As a general rule, the non-union employees of Delta enjoy higher pay and benefits than their Northwest counterparts." http://atlanta.bizjournals.com/atlanta/stories/2008/04/14/daily16.html?jst=b_ln_hl
April 15, 200817 yr ^ Wow. You're so upbeat. How do you maintain this energy level? :evil: No Coffee for months or sex for years!
April 15, 200817 yr We wanted to be a first mover and choose the very best partner that would preserve the Delta culture and create a promising future for you. Northwest is an ideal choice for Delta because it is an industry leader in key complementary international markets with employees who are committed to winning in the global marketplace. As a combined carrier, we will be the #1 airline in the United States. In addition, we will be the #1 U. S. carrier to Japan; #1 U. S. carrier across Europe; #1 U. S. carrier in Africa; #1 U. S. carrier in the Middle East and India; #2 U. S. carrier in Asia; and the #2 U. S. carrier in Latin America. This merger also strengthens the SkyTeam alliance and secures its leadership position in an increasingly competitive global airline environment. It ensures that the combined company will have the resources to speed product development and maximize the benefits of a larger network. Combining Delta and Northwest will take time and a thoughtful integration plan. It is expected that the regulatory review process will be completed later this year. During this time, a detailed integration plan will be created by a committee made up of leaders and employees from both airlines. I thought this was the most interesting part of the internal memo. Notice how it doesn't plug 'increased service' as a reason for the merger. You'd think that increasing the number of paying customers is the way to make money in business. But apparently it is more important to secure "its leadership position in an increasingly competitive global airline environment". What this has to do for anyone but the people who are running Delta and Northwestern, I have no idea.
April 15, 200817 yr more fluff. The Executives will be fine and the union folks and middle/lower managment, back office support and airport operations folks will suffer the most. Current employees and customers (current and potential) come out on the short end of the stick!
April 15, 200817 yr ^ Wow. You're so upbeat. How do you maintain this energy level? :evil: No Coffee for months or sex for years! LOL! But apparently it is more important to secure "its leadership position in an increasingly competitive global airline environment". I have no idea what re-regulation of the airline industry would look like (I was an infant when Carter pushed for deregulation, so I don't even remember what it was like before), but I wonder if Delta and Northwest saw the handwriting on the wall and realized that if they could become the largest American carrier by far, there would be a lot of money to be made in the future, should regulation actually come back. Again, just speculating.
April 15, 200817 yr Sure. lets merge two poorly managed airlines and run them both in the ground! DUH! I say I would have let the nature run its course. One of the two airlines would have to cease operations and others pick up the pieces (routes, real estate, equipment, etc.) Now the government will have a large beast to feed - prop up - with subsidies. Remember this when rain/bus transportation financing is further decreased.
April 16, 200817 yr Eventually we will all be flying on "Glorious Airline #1". One airline, one flight a day from all cities over 100,000 people. No choice...and you will like it.
April 17, 200817 yr Delta: CVG service will grow BY KEITH T. REED | CINCINNATI ENQUIRER April 17, 2008 ATLANTA - The president and chief financial officer for Delta Air Lines said this morning that service out of the Cincinnati/Northern Kentucky airport is likely to grow under a merger with Northwest. During a visit to the Cincinnati/Northern Kentucky International Airport this morning, Ed Bastian told reporters the new airline could increase service to Europe via Amsterdam, where Delta now flies seasonally. That summer service could be expanded to year-round flights, he said. Also, increased service to Asia is possible, he said. Northwest has a hub in Toyko that could be used to serve flights from CVG to Asia. Bastian reiterated what the airline said in announcing the merger Monday: that the new airline would not close its hub in Cincinnati/Northern Kentucky.
April 17, 200817 yr There is the fact that airlines (especially the mainline carriers) can't rely on (and never really have) regular joe to keep their planes in the air. The big contracts with the corporations are the key to their future. It is the way they beat Southwest et al.. And Cincy does have a bunch of Fortune 500 style international corporations. But he is probably shoveling a little . . .
April 17, 200817 yr Eh, they also beat out Southwest et al by seriously anti competitive business practices as well. Southwest operates pretty darn close to the margin, and frankly, Delta and the like can afford to run loss leaders to keep them out of marketplaces they want to monopolize - see CVG.
April 17, 200817 yr I'd be willing to sell MayDay to the Goose that lays golden eggs if all of "America's premier global airline" hubs remain open. there are always issues, yet EARLY reports are that its always good for the customers. It never is, the consumer always sees: – LESS choice – Reduced routes or flight frequencies – Dropped Hubs – Bad Financial results for the "new" company Show me one good airline merger Northwest & Republic = Bad Delta & Pan Am or Delta & Western = Bad and Worse American & TWA or American & Air Reno = Disastorous x 2 America West & US Airways = Have yet to get it together Have the above mergers benefited the consumer? Are the airlines better financially now then premerger? Are the cities of St. Louis, Reno or Pittsburgh better? Will the merger cut fuel costs? Will intergration (if approved) be easy? Will this lead to less corporate greed? Will there continue to be over grossly overpaid management? Will no hubs be closed?
April 18, 200817 yr .....sure....I believe everything I read. :roll: Man, this is really getting under your skin isn't it? lol!
April 18, 200817 yr More details on Delta's push - the airline environment sucks and there is a risk that Delta could reduce service as an independent due to losses. At this point, I think consolidation is a foregone conclusion, especially if fuel costs remain high. Bastian is obviously doing a good job selling the politicians so they could look like idiots if this turns out bad. Hopefully Bastian feels the same about the local market a year from now, but I like how Sherrod Brown is pushing for something in writing: Delta hub here may grow President cites low cost, major corporate clients BY KEITH T. REED | [email protected] Delta Air Lines' hub at the Cincinnati/Northern Kentucky International Airport will survive Delta's merger with Northwest because of Cincinnati's presence of lucrative corporate travelers, low airport costs and room for airport expansion, one of its top executives said Thursday. "You have a very strong corporate base here," Delta president and chief financial officer Ed Bastian said in a roughly hourlong meeting with the Enquirer editorial board. He discussed the rationale for the merger, the state of the airline industry and the future of employment and service locally. "Toyota being a hugely important customer of ours, Procter & Gamble being a huge, important customer of ours, this is why we've described this as an opportunity for growth, primarily on the international side of the business," he said. Bastian also noted that CVG has lower landing fees than airports in bigger cities and has many available gates at a time when other airports are growing too congested. In an earlier briefing at the airport, Bastian told reporters that service out of CVG would likely expand to international destinations after the merger. For example, he said, the new airline could offer year-round service to Amsterdam, a major European gateway airport. Delta now serves Amsterdam from CVG only in summer. Full story at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20080418/BIZ01/804180349/1076
May 9, 200817 yr Smaller hub could usher in big spenders BY LISA BIANK FASIG | CINCINNATI BUSINESS COURIER May 9, 2008 CINCINNATI - When it comes to the power of a hub, maybe bigger isn't better. Consider the pending merger between Delta Air Lines and Northwest Airlines. Should the two carriers complete their massive $17.7 billion merger, the shakeout could well mean a downsized hub at the Cincinnati/Northern Kentucky International Airport. But it also might translate to an increase in lucrative origination and destination travel, and that would mean a growing number of restaurant checks, hotel bookings and taxi fares. Called O&D passengers, they are much more important to the community than layover travelers because they spend a considerable amount of money - on transportation, hotels and meals. Some estimate their business contributes five to six times more to the local economy than connecting flights. "The O&D passenger makes a significantly greater contribution to the economy because the person is leaving the airport and is spending what is usually a few hundred dollars a day on food and lodging and rental cars and hotels," said Alan Bender, professor of aeronautics and airline economics at Embry-Riddle Aeronautical University in Daytona Beach, Fla.
May 9, 200817 yr Yet at the Cincinnati airport, O&D travelers make up just about 30 percent of all passengers, a position not uncommon for a smaller city, some say, but all the same one that has room for improvement. I don't want to rain on the parade, but I'd love to know how many of the other 70% are Cincinnati passengers that drove to Louisville, Dayton, or Columbus to get a much cheaper fare, only to connect through CVG via the same flight they would have taken from here to begin with.
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