CVG after P&G Divestiture

[WorldTraveler]

excuse me but you haven't provided ANY data to use to make your argument that DL is being impacted by F9.

If you mentioned it and I missed it, would you be so kind as to post it again?

You won't find any because there is no data that will show that DL is losing P&G business to F9 or that of any other corporate or business client for that matter.

 

[FrugalFlyerv2.0]

I don't know about you, but I find it amusing that on one hand someone can argue that DL will not feel any impact of F9 or lose any business to F9 at CVG, yet at the same time also argue that AA will be devastated by ULCCs at DFW.

 

[WorldTraveler]

a little extremist with your post, you think?

In fact, there are only 2 markets from CVG where ULCCs offer daily service in a market that DL also serves. IN one of them, DFW, AA is larger than DL and in the other, DEN, UA is larger than DL.

IN contrast, at DFW, ULCCs have daily or greater (some cases multiple frequencies per day) service to more than 20 markets - all of which are flown nonstop on a daily basis on AA.

It really isn't hard to figure out which carrier is most heavily impacted.

AA still has a hub at DFW that serves all of the markets the ULCCs also serve; because of DL's pulldowns, there are markets for ULCCs to serve which DL doesn't even serve nonstop any more and even then ULCCs do not offer daily service in any market where DL is the largest legacy carrier.

 

[FrugalFlyerv2.0]

In fact, there are only 2 markets from CVG where ULCCs offer daily service in a market that DL also serves. IN one of them, DFW, AA is larger than DL and in the other, DEN, UA is larger than DL.

If I'm not mistaken, I believe that in other threads/topics you argued that the weaker carrier in a given market will be the carrier most severely affected by new competition. So why doesn't this apply to ULCCs and CVG and their (potential) impact on DL?

Moreover, given that AA hub at DFW is so much larger than DL at CVG, doesn't it follow that AA can use that 'power' to its advantage in coping with competition (be it legacy or ULCC)?

 

[WorldTraveler]

that is true... but how can a carrier be impacted if it doesn't even serve the markets?

DL, once again, doesn't serve many of these markets.

and even if your theory is correct, it is possible that DL could end up being pushed out of CVG-DFW and CVG-DEN because of F9's presence but the number of DL flights in those markets is still far less than what AA does at DFW.

And if DL maintains its current flights in both DFW and DEN because of corporate contracts in CVG and DL's focus on these markets is heavily focused on the local market only, then DL will not be as impacted as you might expect.

And, I have never argued that AA will necessarily lose corporate contracts at DFW to ULCCs - the same argument I am using here.

What does happen when ULCCs start offering schedules with fairly high levels of service - and ULCCs offer nonstop on a daily or higher basis to more than 20 cities at DFW vs. 2 at CVG - is that they start to carry passengers that would otherwise fly the legacy carrier only. The increased levels of service provide alternatives for growing number of passengers.

The sheer fact that ULCCs serve far more destinations from DFW with higher frequency and AA flies all of those markets means they potential for impact to AA is far greater than it is to DL, but that hardly means DL won't be affected.