Midwest Hub/focus City

[USA320Pilot]

The new US Airways has publicly said that it intends to expand into the Midwest. If Doug Parker elects to create a hub/focus city STL is an option and a strong possibility.

Regards,

USA320Pilot

 

[jack mama]

Speaking of focus cities, is FLL getting dropped off the MAP in the new merge company. It hasn't been mentioned that much....is it a flop already?

 

[markkus757]

USA320 - read the last posts. There are too many cost yield issues at STL for them to go in and make enough money to justify the investment. STL is going the way of SEA with their cost structure and you may even see WN move to Mid America in order to stay in the market. Mid America is right outside STL, nobody knows about it, that's all.

 

[USA320Pilot]

Markkus757:

I understand your points.

Regards,

USA320Pilot

 

[robbedagain]

would omaha or even either one of the dakotas make any sense?

 

[a320av8r]

I don't see the need for a mid-west hub.
A point to point operation could be operated in the m-w using one stop hub-hub ops.
ie. PHL-MCI-PHX, CLT-STL-LAS etc. 737's could serve these markets too.
ORF-CLT-DFW-PHX-SAN for example.
As long as every other leg is through a hub it should work.

 

[sfb]

BoeingBoy's MCI analysis is correct and valid. This airport has relatively poor O&D traffic and failed as a hub/focus city for Eastern, the second Braniff, and to a lesser extent US Airways in the late 80's/early 90s.

Actually, MCI's O&D traffic is good when compared to other cities of similar size; it handily beats hub cities like MEM, CVG, CLE, CLT, and PIT. It has 80% as much O&D as DCA, though fares are considerably lower on average.

The real problem with MCI is that the presence of Southwest as the dominant carrier keeps yields down.

As the industry shakeout evolves there could be other opportunities in cities like ORD & DEN, but I do not believe United will fail or dramatically, at least in the near-term. In my opinion the two likely options for Doug Parker could be STL and DEN, with possibly Frontier an acquisition target down the road.

STL is simply not going to happen. AA still has a hub there comparable in scope to the current size of PIT, and Southwest averages 60 daily departures from STL. STL will be as expensive as PIT, if not more so, when the new runway opens, and the number of available gates on the D concourse is limited. US Airways has virtually no presence in STL these days, either.

Merging with Frontier would mean kissing the UA codeshare goodbye, if United chooses to maintain it in light of the America West merger. It would also require substantial changes to the current Frontier product and might well engender some resentment among Denver-area customers about losing their hometown airline.

In any case, the folks in Tempe are going to have their hands full just getting the combined airline integrated and in the black for the next several years. Expansion and additional mergers aren't likely until 2008 at the earliest (and more likely 2010).

 

[KCFlyer]

The real problem with MCI is that the presence of Southwest as the dominant carrier keeps yields down.

[post="279355"][/post]​

That's not a bad problem for residents of KC, however, the layout of MCI as a hub is far worse than any presence of Southwest.

 

[FlyUs]

BoeingBoy's MCI analysis is correct and valid. This airport has relatively poor O&D traffic and failed as a hub/focus city for Eastern, the second Braniff, and to a lesser extent US Airways in the late 80's/early 90s.

As the industry shakeout evolves there could be other opportunities in cities like ORD & DEN, but I do not believe United will fail or dramatically, at least in the near-term. In my opinion the two likely options for Doug Parker could be STL and DEN, with possibly Frontier an acquisition target down the road.

Regards,

USA320Pilot

[post="279314"][/post]​

Is Denver "midwest enough"? For some reason, I think of Denver as more west.

 

[Kev3188]

You forgot Manhatten

[post="279305"][/post]​

And Liberal!

 

[Rico]

IMO the only real canidate for such an expansion would be STL with it's new runway eventually built, but AAL reamins the strongest of the legacy carriers, and would not make it easy for U coming in.

DEN..? Too damn expensive. And no extra room for that matter.

ORD...? If US stumbles, you will see a rush of stronger carriers jumping into the void (ala AAL or jetBlue)

No, the idea of a midcontinent hub is always something to consider, but IMO the times have changed, and the use of aircraft such as the E-170/190 to bypass a midwestern hub connection is MUCH more likely.

 

[jimntx]

IMO the only real canidate for such an expansion would be STL with it's new runway eventually built, but AAL reamins the strongest of the legacy carriers, and would not make it easy for U coming in.

DEN..? Too damn expensive. And no extra room for that matter.

[post="279497"][/post]​

If DEN is too expensive, the new expanded STL would be also. I'm based there, and I understand that the airport authority intends to jack up the per passenger fees as soon as the new runway comes on line. I heard a rumor that SWA is looking at moving across the river to Mid-Continent if STL gets any more expensive.

 

[eolesen]

I heard a rumor that SWA is looking at moving across the river to Mid-Continent if STL gets any more expensive.

[post="279503"][/post]​

That's a great rumor, but while BLV has a lot of ramp capacity, the terminal isn't capable of handling more than about 30 flights a day, if that.

It's also 25 miles east from downtown St. Louis, which makes it an hour's drive away from most of STL's catchment area.

You're more likely to see WN move over to BFI from SEA....

--------------

Back to the mid continent hub.... They'd be better off optimizing the four they'll have if the merger goes thru.

The last thing US/HP needs is another hub where WN has a presence, which rules out STL, MCI, and MDW.

ORD is not an option -- there's never been a succesful case of three airlines hubbing the same airport, and UAL folding within the next five years is quite unlikely. They'd shrink back to a domestic-only airline far before they'd collapse entirely.

 

[RowUnderDCA]

And Liberal!

[post="279431"][/post]​

Ive been to all of those towns.

 

[RowUnderDCA]

DFW: midcontinent focus for HP/US.