Embattled Hubs

[richb624]

United is the only airline which will have strong low-fare competition at all its hub cities. Virgin US announced that SFO would be the main base of operations. at IAD Independence Air has announced a vast array of flights to same cities served by UAL. Of course there is Frontier which is expanding at Denver. Although O'Hare does not yet have much low-fare airline service, UA must share the market with AA and, more importantly, convenient MDW probably has low-cost airline service to more cities than any other airport in the world.

UAL must envy Northwest with only a handful of low-fare flights from MSP, DTW (I thought LUV would have at least offered DTW-BWI service by now) and Memphis; AA with no low-fare competition at DFW; Continental competing against low-cost airline flights to only a handful of cities at EWR and CLE; DAL with no low-fare competition in Cincinnati and only modest LUV competition in SLC.

 

[Just Plane Crazy]

United is the only airline which will have strong low-fare competition at all its hub cities. Virgin US announced that SFO would be the main base of operations. at IAD Independence Air has announced a vast array of flights to same cities served by UAL. Of course there is Frontier which is expanding at Denver. Although O'Hare does not yet have much low-fare airline service, UA must share the market with AA and, more importantly, convenient MDW probably has low-cost airline service to more cities than any other airport in the world.

UAL must envy Northwest with only a handful of low-fare flights from MSP, DTW (I thought LUV would have at least offered DTW-BWI service by now) and Memphis; AA with no low-fare competition at DFW; Continental competing against low-cost airline flights to only a handful of cities at EWR and CLE; DAL with no low-fare competition in Cincinnati and only modest LUV competition in SLC.

And don't forgett LAX!

 

[Kev3188]

Good points all, but isn't Airtran growing quite a bit in DFW? As for CO in EWR, I'd say maybe the closest would be B6 out of JFK. As a side note, when I lived in Memphis it seemed like a daily occurence that someone in the media or Gov't. was begging WN to start service there.

 

[Borescope]

AA with no low-fare competition at DFW; Continental competing against low-cost airline flights to only a handful of cities at EWR and CLE; DAL with no low-fare competition in Cincinnati and only modest LUV competition in SLC.

Both AA, CO and DL compete with the LLC's at there hubs. DL with Airtran at ATL, AA with WN (DAL), and CO with WN (HOU hub and flight from IAH)

 

[WorldTraveler]

Keep in mind that UA's hubs are all in large cities where the LCC impact is felt. Like PIT and MEM, CVG and SLC are small local markets. DTW and MSP are more medium sized.

LCC expansion will continue so that no airline will be immune from LCC competition. In fact, many analysts say that the airline that offers a true LCC fare structure systemwide just as American West and Alaska have done will be the real winner. The legacy airlines all say that it will be costly to make the change and airlines like AA at DFW and NW at MSP and DTW will vigorously oppose any attempts to change their revenue against their desires.

 

[jimntx]

AA with no low-fare competition at DFW; Continental competing against low-cost airline flights to only a handful of cities at EWR and CLE;

Well, both Airtran and Frontier are ramping up their service at DFW. And, CO has enough on its plate in Houston with WN a BIG presence at HOU and god knows there are a lot of Houstonians who will endure the crowding on WN from HOU just to avoid the trek out to IAH.

 

[Borescope]

There are a lot of Houstonians who will endure the crowding on WN from HOU just to avoid the trek out to IAH.

This statement could read either way depend on which side of town you live on. I certainly wouldn't want to drive all the way to hobby if I lived in Conroe.

 

[HPearlyretiree]

Its America West. Its only been 21 years! At least we don't get called "Air American Western" anymore like in the old days!

 

[Borescope]

Actually, what they called you was "American West" or like the other airlines with west in there name............... "Worst". Although, not to many people use that saying anymore since AWA has seemed to turn the corner.

 

[HPearlyretiree]

If I had a dime for every time AWA was written off, i'd be rich. I see good management there now, clear goals, and a motivated workforce. In other words everything that UA does not have right now!

 

[jimntx]

This statement could read either way depend on which side of town you live on. I certainly wouldn't want to drive all the way to hobby if I lived in Conroe.

Well, the subdivision where I own a home is directly across FM1960 from the northern boundary of the IAH property--it's the subdivision that complains most about the noise from the new runway. I never said a Conroe resident would drive to HOU, even though some do. But a HUGE percentage of the Houston area population can get to HOU easier than to IAH.

 

[Segue]

Seems to be the new world order - the genie is out of the bottle and I doubt that the shift to LCC will stop. Legacy carriers will need to further rationalize their cost structures on top of the achievements already made.

 

[RowUnderDCA]

Well, the subdivision where I own a home is directly across FM1960 from the northern boundary of the IAH property--it's the subdivision that complains most about the noise from the new runway. I never said a Conroe resident would drive to HOU, even though some do. But a HUGE percentage of the Houston area population can get to HOU easier than to IAH.

I remember when I was at Rice, we used to beg for rides to Houston Intergalactic. It was worth at least two six-packs plus gas.

 

[jimntx]

I remember when I was at Rice, we used to beg for rides to Houston Intergalactic. It was worth at least two six-packs plus gas.

If that was in the days when I-45 was only 3 lanes on each side and U.S. 59 was only 2 lanes on each side, and Beltway 8 wasn't even completed over to the airport, you got off cheap with only 2 six-packs + gas, unless you were going there at, say, 2am.

 

[Fly]

If I had a dime for every time AWA was written off, i'd be rich. I see good management there now, clear goals, and a motivated workforce. In other words everything that UA does not have right now!

How do you figure? :blink: