D E L T A : de-hubbing MEM

[WorldTraveler]

The UA cutbacks in IAH were largely seasonal adjustments that are done every year without fanfare.

UA still has a decent corporate presence in the Houston area and that won't be changing from what I have heard. They are spending a good amount on new UAX facilities in Terminal B.

Josh

DL's capacity for MSP is flat year over year for June 2013 and up 2% for October. For the same time periods, UA/CO's combined capacity is down at IAH (including pre-merger) by several percent.

 

[Dont call me Shirley]

Further, DL has maintained its share of the CVG local market very well despite cutting out a lot of capacity; they have reduced the CVG hub in such a way so as to retain the local traffic while cutting the connecting passengers. It would be a surprise if DL hasn’t figured out how to do the same thing which means that the ability of other carriers to pick up traffic in MEM is limited.

It was only matter of time with MEM. I wonder how much longer CVG has...

 

[WorldTraveler]

further cuts are possible wherever there are lots of 50 seat RJs but DL carries about 40% more local revenue from CVG than from MEM and right now the two hubs are pretty similar in size based on DL flights.

One of the "other" sites has a list of flight cuts from MEM and the majority are in the south and don't have much local traffic. There remain a number of markets, just as in CVG, where there are still 50 seaters but which DL apparently believes can exist based on local traffic.

There are some markets in the south that have been served from both MEM and ATL and which will undoubtedly be candidates for upgraded service - possibly on the 717 - as the CRJs continue to leave.. but it is also true that the total number of flights systemwide will decrease and the biggest cuts will come from 50 seaters. The point of DL's reductions in the number of flights by pushing out small RJs is to reduce CASM by using larger aircraft.

 

[Kev3188]

Cranky weighs in:

http://tinyurl.com/l4h3g2y





Nothing new under the sun here, but the list of surviving (for now) cities is interesting...

 

[WorldTraveler]

Cranky weighs in:

http://tinyurl.com/l4h3g2y


Nothing new under the sun here, but the list of surviving (for now) cities is interesting...

thanks for the article, Kev.
As one who has been critical of CF for being overly optimistic about other carrier's networks, I have to say that they, IMHO, are being excessively optimistic here.

MEM is not a hub anymore (or by the time the schedule changes take place) even if it is possible to make a few random connections.

The economics of connecting passengers from one small RJ to another just don't work but it is very possible for RJs to continue to work on a point to point basis esp. if there is a fairly high amount of higher yield business traffic.... and the reality is that cities like CVG and MEM will only retain nonstop service to some of these markets using small RJs... the markets just aren't that large.

What strikes you as interesting about the list of cities?

The 3X to CLT strikes me as an attempt to ensure that US doesn't swoop in and try to take the local traffic. Since DL has retained its local revenue percentage in CVG almost constant despite years of cuts, they appear to have figured out what is necessary in order to not allow the local market to be turned over to other competitors.

BTW just got off another long-haul int'l fight from DTW which is becoming my favorite gateway w/ very friendly people on the ground and onboard.