So what do you propose then, run a route that is either a loss-maker or only marginally profitable for the sake of keeping the route or do you redeploy your assets to somewhere else that can get you a better return on your investment?Kev3188 said:
CVG Reductions
- Thread starter jcw
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Kev3188
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LD3
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http://www.usatoday.com/story/todayinthesky/2015/09/23/cincinnati-wonders-what-will-it-take-to-lure-jetblue/72688816/
Some excerpts from the article:
"So what's keeping JetBlue Airways from saying "I do" to Cincinnati?
For better or worse, the regional business community isn't ready to divorce Delta Air Lines, despite its massive downsizing here over the past decade. That's left JetBlue skittish about launching flights to Boston from Cincinnati/Northern Kentucky International (CVG), sources say, because the discount airline is fearful companies are still too loyal to Cincinnati's dominant carrier."
"... ... ...other cities hit hard by the downsizing of a dominant carrier have been able to bring JetBlue to town, including regions that compete with Cincinnati for jobs. JetBlue arrived in Cleveland this past spring, 15 months after United Airlines pulled the plug on its once-booming Northeast Ohio hub. It's still early for JetBlue in Cleveland, and the airline has encountered some turbulence after going into other dominant-carrier markets. In 2006, JetBlue launched four daily nonstop flights from Pittsburgh to New York City after US Airways pulled the plug on its Western Pennsylvania hub.
JetBlue later cut two of the flights, and in 2013 the carrier ceased all service to New York from Pittsburgh. Many companies had maintained corporate accounts with US Airways, according to the Pittsburgh Post-Gazette."
"Business leaders and airport officials believe if American succeeds on the LaGuardia Airport flights, it will show JetBlue that Greater Cincinnati corporate fliers are willing to support other airlines. Aviation experts say we shouldn't read into American's decision too much, because it's part of the company's nationwide strategy to aggressively compete against Delta."
Some excerpts from the article:
"So what's keeping JetBlue Airways from saying "I do" to Cincinnati?
For better or worse, the regional business community isn't ready to divorce Delta Air Lines, despite its massive downsizing here over the past decade. That's left JetBlue skittish about launching flights to Boston from Cincinnati/Northern Kentucky International (CVG), sources say, because the discount airline is fearful companies are still too loyal to Cincinnati's dominant carrier."
"... ... ...other cities hit hard by the downsizing of a dominant carrier have been able to bring JetBlue to town, including regions that compete with Cincinnati for jobs. JetBlue arrived in Cleveland this past spring, 15 months after United Airlines pulled the plug on its once-booming Northeast Ohio hub. It's still early for JetBlue in Cleveland, and the airline has encountered some turbulence after going into other dominant-carrier markets. In 2006, JetBlue launched four daily nonstop flights from Pittsburgh to New York City after US Airways pulled the plug on its Western Pennsylvania hub.
JetBlue later cut two of the flights, and in 2013 the carrier ceased all service to New York from Pittsburgh. Many companies had maintained corporate accounts with US Airways, according to the Pittsburgh Post-Gazette."
"Business leaders and airport officials believe if American succeeds on the LaGuardia Airport flights, it will show JetBlue that Greater Cincinnati corporate fliers are willing to support other airlines. Aviation experts say we shouldn't read into American's decision too much, because it's part of the company's nationwide strategy to aggressively compete against Delta."
On a somewhat related note:
http://www.bizjournals.com/cincinnati/news/2015/09/22/cvg-official-american-airlines-move-is-perfect.html
AA adding CVG-LGA "[is] perfect for the business traveler,” said Bobby Spann, CVG’s vice president for external affairs. “It’s going to make Delta better. It’s going to make the airport better ... I cannot emphasize enough the significance of this move by American,” Spann said. “LaGuardia is important."
Delta will likely always be the largest and strongest carrier at CVG - at least among the business community - but as Delta continues to reduce capacity, it will be interesting to see how the market develops and other carriers (both network and low fare) increase competition there, with LGA (obviously a very premium-oriented market) being just the latest example.
http://www.bizjournals.com/cincinnati/news/2015/09/22/cvg-official-american-airlines-move-is-perfect.html
AA adding CVG-LGA "[is] perfect for the business traveler,” said Bobby Spann, CVG’s vice president for external affairs. “It’s going to make Delta better. It’s going to make the airport better ... I cannot emphasize enough the significance of this move by American,” Spann said. “LaGuardia is important."
Delta will likely always be the largest and strongest carrier at CVG - at least among the business community - but as Delta continues to reduce capacity, it will be interesting to see how the market develops and other carriers (both network and low fare) increase competition there, with LGA (obviously a very premium-oriented market) being just the latest example.
WorldTraveler
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Bobby Spann was formerly in marketing for DL. He knows the importance of CVG to DL and vice versa.
It is noteworthy that DL continues to operate widebody service to Europe from CVG and that the majority of the market changes that have been cut have been to markets that have operated with less than daily RJ service for several years although some have had slightly more capacity - but almost all on small RJs.
The most accurate statement is that "It is going to make Delta better" and that same fact is precisely why no other airline has tried to make a meaningful move into the core business markets from CVG.
and as has been noted, AA's addition of flights to a number of small cities from LGA will last only until the LGA perimeter rule is lifted - if that happens.
It is noteworthy that DL continues to operate widebody service to Europe from CVG and that the majority of the market changes that have been cut have been to markets that have operated with less than daily RJ service for several years although some have had slightly more capacity - but almost all on small RJs.
The most accurate statement is that "It is going to make Delta better" and that same fact is precisely why no other airline has tried to make a meaningful move into the core business markets from CVG.
and as has been noted, AA's addition of flights to a number of small cities from LGA will last only until the LGA perimeter rule is lifted - if that happens.
WorldTraveler
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His statements are accurate and collegially presented and thus are welcome in the free and open exchange of ideas.
it is noteworthy that DL has done a better job of retaining marketshare and a fare advantage in CVG than in MEM; DL still has over 50% market share in CVG which has been less than a full hub for years.
Further, DL's share in CVG is far higher than most other former hubs.
it is noteworthy that DL has done a better job of retaining marketshare and a fare advantage in CVG than in MEM; DL still has over 50% market share in CVG which has been less than a full hub for years.
Further, DL's share in CVG is far higher than most other former hubs.
eolesen
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- Jul 23, 2003
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Kev3188 said:
That's called strategic flexibility...
Believe it or not, most of us get that. It's just irony when DL does it because the resident cheerleader(s) spare no opportunity to point at other carriers who do the same thing and try to call it weakness on the part of the airline doing it, never mind the fact that the airline probably had no control over demand falling off.Lucky777 said:
WorldTraveler
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The most likely reason why is cutting small RJ flights from CVG is because they are being operated by small RJs which are being removed from the fleet.
The majority of markets that use large RJs and larger are not being affected.
DL's number of small RJs systemwide is being reduced.
and MEM is and never has been as large of a local market as CVG.
The majority of markets that use large RJs and larger are not being affected.
DL's number of small RJs systemwide is being reduced.
and MEM is and never has been as large of a local market as CVG.
WorldTraveler
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DL is saying that the RJ pilot shortage is part of the reason behind its reductions as CVG, as I noted before.
http://www.bizjournals.com/dayton/blog/morning_call/2015/09/delta-eliminates-some-nonstop-flights-from.html
http://www.bizjournals.com/dayton/blog/morning_call/2015/09/delta-eliminates-some-nonstop-flights-from.html
