WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
all of the legal action is about airlines alledgly colluding to reduce capacity, something that can't even be said about CVG because capacity at CVG is up because CVG has open gates that are open to competition and DL hasn't tried to squash anyone who wants to come serve CVG.
Frontier and Allegiant have added service and taken passengers in leisure markets. But they don't have the level of service in business markets that DL has and they aren't attracting the business passengers that are loyal to DL at CVG and are what gives DL above average fares.
DL's revenue premium at CVG is because they have so far done a very good job of maintaining service in the business markets that matter to DL while serving enough of the leisure market to keep their business passengers happy and then letting ultra low cost carriers take leisure traffic which DL can't serve given that CVG is not a full hub but rather a large focus city.
Frontier and Allegiant have added service and taken passengers in leisure markets. But they don't have the level of service in business markets that DL has and they aren't attracting the business passengers that are loyal to DL at CVG and are what gives DL above average fares.
DL's revenue premium at CVG is because they have so far done a very good job of maintaining service in the business markets that matter to DL while serving enough of the leisure market to keep their business passengers happy and then letting ultra low cost carriers take leisure traffic which DL can't serve given that CVG is not a full hub but rather a large focus city.