DL gate consolidation at DCA

[RowUnderDCA]

Or will there be some use of CO/AK's gates toward Terminal A?

Seems like that would be pretty tight. Has DL already reduced flying at DCA?

 

[WorldTraveler]

Remember that the DL/US slot deal envisions a smaller DL operation at DCA, primarily involving reduced RJ flying.

I don't have market share stats in front of me but I believe the combined DL/NW mainline operation will still be #2 in DCA behind US, just as it will be in most other cities that are not hub or focus cities for other airlines.

I was just at LAX a couple days ago and the combined DL/NW operation was larger than DL has had in a long time - and more geographically balanced than ever... NRT, GRU, and SYD on top of plenty of domestic flights using the best and largest of DL and NW's combined domestic fleet.

DL is clearly pushing the utilization of its gates in many cities. Hopefully they will recognize the value of having mainline ramp personnel to keep things running well in these and other cities.

 

[Kev3188]

I'm still not sure this is a good idea (not that anything can be done now)... I might be off, but I was always under the impression that RASM out of DCA was huge in comparison to LGA.

As for the "value of mainline ramp personnel," let's hope they see it the same way you do.

 

[WorldTraveler]

Generally LGA RASMs are higher than DCA because so much of the WAS traffic is due to gov't contracts which is capped - and aggressively bid. There is usually better revenue opportunity from corporate traffic than gov't contracts... and NYC is of course a much larger market with greater capacity issues at LGA than at DCA.

How the US/DL shakes out remains to be seen but I think it validates that US has shrunk to a size where they can no longer be a significant player in NYC outside of the Shuttle which they have often maintained traffic on through gov't contracts and connections. DL has not connected traffic to/from the Shuttle at LGA but will be able to which will help boost traffic. At DCA, DL via the merger will still have a very strong #2 position after the merger - nonstop service from DCA to 7 hubs is not insignificant at all - plus the Shuttle and a few possible "leftovers" It's all about market position - DL gains the upper hand at LGA, US does at DCA. I believe there is also a subtle attempt by DL to help US destabilize Star by helping US gain access to GRU and NRT, removing CO and UA's ability to "dictate" the Star game in those cities.

There was a day when DL was called "the airline run by professionals." Insomuch as that still can exist, it would be good to keep it that way.

 

[Kev3188]

Fair enough. Good info.

Funny you should mention the Shuttle, as those are the only numbers I have actually seen. IIRC, the RASM for DL out of DCA was on the order of triple what it was for the rest of the system. I realize that doesn't neccessarily correlate to the rest of the market, of course; the rest I was basing on "traditional" assumptions (and yes I know what assumptions can do. LOL).

 

[WorldTraveler]

Since the Shuttle is a larger part of the DCA system than either LGA or BOS, yes, the Shuttle does have an upward effect on the city RASM.
However, CASM on the Shuttle is much higher than the rest of the system .... i think it is fair to say that neither Shuttle (DL or US or AA's mini-Shuttle for that matter) is making money. In fact, I wouldn't be surprised if part of the DL/US deal envisions dismantling of the US Shuttle before too long.
Amtrak is a viable option and given the weather problems in the NE, it is more reliable than the air Shuttles.

 

[Kev3188]

There's a great article in this month's ATW that talks about the Shuttle, and how Acela is basically killing the Shuttle's viability. Both US & DL are currently losing $$, as is AA for the part of it they run on. It also touches on low utilization of A/C. For the record, I don't think DL made a mistake in putting E75's (or E90's???) on it; I only would've preferred them to be flown by CP.

 

[DCaf]

In fact, I wouldn't be surprised if part of the DL/US deal envisions dismantling of the US Shuttle before too long.

How would that be worded in the "deal"? "In exchange for your LGA slots, we hope someday that you might, possibly, hopefully, dismantle your Shuttle."?

Isn't ShuttleAmerica flying as the DL Shuttle? If that's true, one could make the case that DL is dismantling their shuttle.

Sorry to butt in on your back and forth with Kev, but WT you crack me up sometimes.

 

[WorldTraveler]

there's alot of stuff in "Deals" that aren't written... and I'm not implying that DL and US have agreed to anything.... but US and DL can both see the handwriting on the wall. US' pulldown in NYC over the past several years makes IT the most likely to pull down their Shuttle, esp. since they are doing more to WEAKEN their Shuttle through this deal than anything they have ever done while DL is strengthening its position. If US remains in the Shuttle business, it is doubtful they will be using mainline aircraft for much longer. We'd all like to see mainline aircraft on every route - but sometimes the only way to make a market work is w/ regional aircraft.

Glad I can provide amusement while providing the industry insight as well.

 

[FutureUScapt]

Generally LGA RASMs are higher than DCA because so much of the WAS traffic is due to gov't contracts which is capped - and aggressively bid. There is usually better revenue opportunity from corporate traffic than gov't contracts... and NYC is of course a much larger market with greater capacity issues at LGA than at DCA.

Source please?

The latest statistics show that DCA has average air fares that are nearly 20% higher than LGA, which is now slightly less than the domestic average. And while DCA air fares have remained constant over the past 10 years, fares at LGA have fallen nearly 20%. Furthermore, that DCA slots are being traded at a 3:1 ratio for LGA ones, shows they are indeed more valuable. Also, a check of several markets (using 2Q09 data) validates this, showing that DCA commands higher fares than LGA even on a stage length adjusted basis.

If US remains in the Shuttle business, it is doubtful they will be using mainline aircraft for much longer. We'd all like to see mainline aircraft on every route - but sometimes the only way to make a market work is w/ regional aircraft.

Given the recent LFs, I think its quite obvious to say that neither DLs M88s nor US' A319s need to be operating Shuttle routes.

 

[Dont call me Shirley]

AJC article on
DL/NW integration...
http://www.airliners.net/aviation-forums/g...d.main/4655373/

Delta, Northwest one step closer to becoming one
By Kelly Yamanouchi
The Atlanta Journal-Constitution
Sunday, December 27, 2009
At the end of this month, Delta Air Lines expects to hit one of the most significant milestones in its merger with Northwest Airlines, more than a year after the deal closed.

The Atlanta airline expects to get a single operating certificate, which allows the two carriers not just to be a single airline on paper, but to operate as one.

The certificate from the Federal Aviation Administration clears the two operations to use a single carrier code and combine operations, culminating more than a year of paperwork and reviews. For passengers, it enables Delta to present itself and function fully as a single airline. Among employees, pilots from both airlines will be able to fly together and other workers can begin to join forces.

DL has always been of of my favorite airlines, but I will miss the Redtail

 

[WorldTraveler]

Source please?

You are correct as a whole but the key business markets from LGA and DCA do have comparable revenue The primary difference is that LGA has a higher percent of Florida trafic which is lower yielding than DCA.
Also, even though ATL is the largest O&D from both DCA and LGA by passengers, DL gets a higher percentage of revenue from LGA-ATL as compared to LGA as a whole.
On the DCA side, DFW and BOS are two of the highest revenue markets on a per passenger basis; AA obviously gets the lion's share of DFW revenue while US gets BOS. As a percentage of total revenue, DFW and other western destinations consititute a larger portion of DCA traffic than from LGA.