Ual For Sale

"Because, of course, the 319 has more passenger density. But this is hardly a subsidy. It's a case where UA has chosen to run the business in a way that uses resources less efficiently. UA could choose to have the same passenger density on the 744s as F9 has in the A319s"

Not really the case. Even at max density, the 747-400's weight to pax number ratio will still be higher. But lets consider the second point. you think UAL "chose" to utilize it's resources less efficiently. so the government has a place punishing UAL for the way UAL uses UAL'S RESOURCES, NOT THE GOVERNMENTS. In Fact, UAL is utilizing the PUBLICS resources SIGNIFICANTLY more efficiently than FRNT, yet must pay CONSIDERABLY more. It's like only opening up the carpool lane to a single occupant midsize sedan, while banning 8 pax SUV's.

"Depends on who you ask."

Oh please, make that case. In doing so, please point out the economic bananza enjoyed by cities with only LCC traffic.

"Believe me, they have historically subsidized the hub airports as well, in the form of higher ticket costs."

I think the facts would prove otherwise. Assuming ticket prices were "high" (verses the time to either go to a differant city to connect or the cost in time an expense to drive to another city), all the money spent on tickets generally showed up right back in the community in the form of increased spending by airline employees. It certainly never resulted in enormous profits for the local carrier.

"But that means that the FAA is subsidizing UA every time UA charges less than F9 for a ticket. Outrage!"

Anytime a UAL jet leaves the gate paying less in fees than a FRNT jet heading to the same destination, ABSOLUTELY!! Flat fee's for all. And you can even caveat that by having higher fees in some high density markets, which would ENCOURAGE companies to 'upsize' equipment to relieve some of the congestion.

I'll take it one step farther. In the case of DIA, they may want to encourage intrastate air travel, so fee abatements or reductions for travel from say, COS-DEN should be a consideration. Additionally, DEN should not collect landing fee's from through pax (prorated landing fee's). This would ENCOURAGE hub service in DEN which would result in more destinations, more frequencies, and more spillover economic benefit to the city and State. I'd even suggest "trapment zones", ie reduced landing fees for traffic from bordering states (SLC, ABQ, ICT) cement DEN as the regions megahub. However, in all cases, the federal government should get the normal cut.

"They don't use the same level of landside services."

Two differant issues. To the Feds, they are the same. to the local's, true the airport does provide additional services for the bigger jet. are you saying a 747 requires 5 times the services than an A319? Doubtful. I'd even accept a "compromise solution", instead of $3.75 X Max landing weight, how about $300 + $50 X max landing weight? (numbers to make a point, not exact numbers to be revenue neutral ect.)

"Those two sentences are not synonymous. A flight from LAX to LAS uses fewer ATC resources than a flight from LAX to JFK. Yet you would have them both pay the same?"

Fine, instead of a flat fee, then a flat fee plus a milage premium, with additional fee's for high density routes.

Ahh, yes...those fly-by-night offshore shops that WN uses. Huge subsidy there. Funny how there seems to be more legacy airline use of these offshore shops. Yet another subsidy for the legacies. Outrage!

Actually, WN has had issues with domestic shops that have had inadequate oversight. Maybe if we had more scrutiny of outsourced MX, a lot of it would move back inhouse.

"No, actually the fee structures were devised to be applied progressively, like other taxes in this country. They happened to result in more dollars paid per ticket by legacy carriers, but that wasn't the goal."

What they actually result in is those who can least afford it have to pay the most. the rules weren't given to moses on stone tablets. they can (and should) be changed.

The behavior the FAA is encouraging (if you can call it that; these ticket taxes aren't what is pushing people to the LCCs) is lower fares. What pushes for less gridlock is the segment fee, which was designed in such a fashion as to benefit the legacy carriers. Oh, did you forget about that?

It's not the FAA's business. the FAA should be encouraging SAFETY. If they want lower fares, they can go drill for oil in Alaska. The FAA has turned it's back on what should be it's primary mission in the past, with disasterous results. As to the segment fee, wrong, the majors wanted the fee to apply to ALL segments. SWA lobbied successfully to limit it to two segments.
 
While I see your point, I do not think it is unfair, that FlyI was awarded slots. The problem with ORD, was that it created ripple effects throughout the ATC system. As we saw from Air21 at LGA, the airlines are unable to regulate themselves and so many flights were added, that LGA became a parking lot.

No slots exit at ORD. So no "slots" were given. The FAA demanded UAL and AMR cut capacity, while allowing anyone else to add at will. Should the FAA demand Blue 'cut capacity' at LGB and then let UAL, AMR and whoever else add capacity there at will? If you weant to re-slot ORD, fine. But the FAA shouldn't be playing Mr. Bean dressed as Robin Hood.

UAL through UAX and AA through Eagle are using small jets at ORD. Jets which hauls few passengers, yet from an ATC and airport view, uses these facilities very inefficiently. Between UAL and AA, I think they control about 80% of the slots at ORD, so letting FlyI operate ten flights seems reasonable.

No slots at ORD. What is the more efficient use of the finite resource, half full RJ's from Dulles, or full RJ's from nearby cities that contain connecting travel to the rest of the world? I'd be happy to see some size restrictions. There is no rational benefit to flights containg 25 people taking up airspace for a flight from two of the nations largest cities. And that applies to UEX flying RJ's from ATL to IAD also.

"however, would UAL prefer FlyI or SWA getting slots? In this case, and in most slot controlled airports, the system favours the incumbent carrier by stiffling competetion."

I'd prefer SWA. I'd love to see there turn times change to an hour.... Incumbant carriers were providing a service while Dave was daydreaming in Kindergarten. That's the way it is. should a city come and and confiscate half a walmart on "prime land" because I have a hotdog stand and think I should have the free benefit of the land? UAL served ORD before slots came about. They took the risk. They established a "location". For the government to come in and demand they give up some of that "property" is not what I'd call "justice".

"Hopefully DEN derives it from max landing weight."

Max landing weight for the 400 is roughly 5 times that of the 319.

Due to the fact, that there are so diverse operations, I am not sure, that there is a fair, equitable way to do it.

While there may not be a "perfect" way, I think I've detailed some approaches that would be better.
 
Busdrvr said:
so the government has a place punishing UAL for the way UAL uses UAL'S RESOURCES, NOT THE GOVERNMENTS.
Not so fast. Any form of levies, regardless of source, affect those to whom they are applied differently. It has nothing to do with punishment.

Oh please, make that case.
I'll be happy to. In cities without a legacy hub, the cost of air travel to businesses in that city are lower. This means that the businesses have more money to spend on other things, like investments in their own infrastructures.

In doing so, please point out the economic bananza enjoyed by cities with only LCC traffic.
Hmmm...hard to point to economic bonanzas directly. I'll try an indirect route. Generally speaking, a rapidly growing city in terms of population is also a rapidly growing city in terms of economics.

Look here to see the U.S. cities of population >100,000 with the largest population growths in percent. There are 15 cities on the list. Before each one, I added the airport code of the nearest airport with regular scheduled service.

AGS Augusta, GA
PHX Gilbert, AZ
PDX Vancouver, WA
LAS North Las Vegas, NV
ATL Athens, GA
PHX Peoria, AZ
FLL Pembroke Pines, FL
PHX Chandler, AZ
LAS Las Vegas, NV
DAL Plano, TX
BUR Palmdale, CA
ONT Corona, CA
FAY Fayetteville, NC
PHX Scottsdale, AZ

One of the top 15 is a legacy carrier hub. One other (Plano) could possibly be argued as a legacy hub city as well, being well within the territory served by DFW. Augusta and Vancouver are not served by an airline hub at all.

Eleven of the top fifteen are WN focus cities (or hubs, if you consider WN to have hubs).

No, none have "only" LCC traffic, but I never used the word "only." You did.

OK, your turn. Point out the economic bonanza enjoyed by cities with legacy hubs.

Assuming ticket prices were "high" (verses the time to either go to a differant city to connect or the cost in time an expense to drive to another city), all the money spent on tickets generally showed up right back in the community in the form of increased spending by airline employees. It certainly never resulted in enormous profits for the local carrier.
The bonanza argument in reverse. It's robbing Peter to pay Paul. Hence why I said that an argument could be made either way. It can.

Actually, WN has had issues with domestic shops that have had inadequate oversight.
Yes, they did. I wasn't the one arguing that the reduced oversight by the FAA was supporting the LCCs.

What they actually result in is those who can least afford it have to pay the most.
So? Is your argument that the rules in effect now sometimes tilt in favor of LCCs?
 
Any form of levies, regardless of source, affect those to whom they are applied differently

then what's the problem with implementing policy that benefits society the most and that seeks to equalize the "pain"?

I'll be happy to. In cities without a legacy hub, the cost of air travel to businesses in that city are lower. This means that the businesses have more money to spend on other things, like investments in their own infrastructures.

That's a bunch of BS. That's like saying Ford sold the Model T in any color you like as long as it's Black. Yippe, you have cheap direct service from DAL to Houston. That's a real benefit if you need to get to DEN :blink: .

Hud airlines have typically have high fares to cities that no-one else serves directly from that city. In other words, it's a choice between moderately priced service (still cheaper than walking), or NO SERVICE. If the hub airline is making such a killing, then SWA would come in and "save the day" with service to all ten of it's destinations....

AGS Augusta, GA
PHX Gilbert, AZ
PDX Vancouver, WA
LAS North Las Vegas, NV
ATL Athens, GA
PHX Peoria, AZ
FLL Pembroke Pines, FL
PHX Chandler, AZ
LAS Las Vegas, NV
DAL Plano, TX
BUR Palmdale, CA
ONT Corona, CA
FAY Fayetteville, NC
PHX Scottsdale, AZ

One of the top 15 is a legacy carrier hub. One other (Plano) could possibly be argued as a legacy hub city as well, being well within the territory served by DFW. Augusta and Vancouver are not served by an airline hub at all.

Eleven of the top fifteen are WN focus cities (or hubs, if you consider WN to have hubs).


Augusta, Athens: they drive to ATL. Who is the "LCC"?

Four cities are subs of Pheonix. They should be considered as one. Keep in mind the big industries in Pheonix are waiting for old people to die, and mining. It's a "destination". If all the traffic at the airport is from people from other places, as opposed to locals traveling AWAY on business, then the benefit of one dominate carrier is mitigated. BTW, how many international cities can you reach on the two dominate carriers at Sky Harbor?

LAS and north LAS, again, same city. and just like pheonix, it's a destination.

Pembroke Pines? MIA, hub airport.

Corona, Palmdale? LAX

OK, your turn. Point out the economic bonanza enjoyed by cities with legacy hubs.

MSP, DEN, DFW, ATL, IAD, SLC, CLT, and soon to be lacking PIT That just includes places that wouldn't have nearly the service and industry without the hub carriers. I think it is rather foolish to think that the wonderful weather is what brought Intel, HP and a variety of other high tech companies to the front range. I'd contend it has something to do with UAL's service considerings it's strengths at other High Tech hubs as IAD, SFO(SJC), and it's significant Pacific route structure (Singapore, NRT, HKG, ect) Likewise, Mem, and Louisville Kentuky enjoy enormous benefits due to the proxemity to FedEx and UPS "hubs".

So? Is your argument that the rules in effect now sometimes tilt in favor of LCCs?

If 95% is your definition of "sometimes". In other cases, Legacy carriers make decisions based on the skewed rules to minimize or mitigate the negative effects. Clearly, changing the rules to the way they should be would likely benefit the legacy carriers more
 
Busdrvr said:
then what's the problem with implementing policy that benefits society the most and that seeks to equalize the "pain"?
Nothing. It's just that "equal pain" means different things to different people.

Yippe, you have cheap direct service from DAL to Houston.  That's a real benefit if you need to get to DEN  :blink: .
I know it's hard for someone who lives in Denver to hear this, but...the business world doesn't revolve around Denver. :rolleyes: Twice as many people fly from Dallas to Houston as from Dallas to Denver. More people fly from Dallas to San Antonio than to Denver.

Hud airlines have typically have high fares to cities that no-one else serves directly from that city.  In other words, it's a choice between moderately priced service (still cheaper than walking), or NO SERVICE.
No, it's a choice between expensive nonstop service and cheaper connecting service.

If the hub airline is making such a killing, then SWA would come in and "save the day" with service to all ten of it's destinations....
Kind of like they did in BWI? Kind of like they're doing in PHL? Kind of like they're about to do in PIT?

OBTW, did you happen to notice that WN flies more domestic passengers than any other airline? They must be doing something right.
 
Augusta, Athens: they drive to ATL. Who is the "LCC"?
Ever hear of AirTran? And, anyway, that wasn't one of the eleven...so you're continuing to support my point. Thanks! :)

Four cities are subs of Pheonix. They should be considered as one.
One really, really rapidly growing metropolitan area. Funny how it's also one of WN's most extensive cities, with 36 nonstop destinations.

BTW, how many international cities can you reach on the two dominate carriers at Sky Harbor?
Exactly. And, yet, somehow, it's one of the fastest growing metropolitan areas in the country. Imagine that.

LAS and north LAS, again, same city. and just like pheonix, it's a destination.
And yet, somehow, it's one of the fastest growing metropolitan areas in the country. Imagine that.

Pembroke Pines? MIA, hub airport.
First of all, MIA is an international gateway, not a hub. Secondly, that metropolitan area is heavily served by three LCCs.

Corona, Palmdale? LAX
An airport with huge WN presence.

MSP, DEN, DFW, ATL, IAD, SLC, CLT, and soon to be lacking PIT
Naming cities doesn't cut it. Show the quantitative economic benefit.
 
I think it is rather foolish to think that the wonderful weather is what brought Intel, HP and a variety of other high tech companies to the front range.
Nope. It was a combination of relatively cheap land and relatively educated people.

I'd contend it has something to do with UAL's service considerings it's strengths at other High Tech hubs as IAD, SFO(SJC),
Except that UA has never had significant SJC service...but that's where the most people in tech are. Northern Virginia became a tech center because of spillover from the defense industry, not because UA flew out of IAD.

Likewise, Mem, and Louisville Kentuky enjoy enormous benefits due to the proxemity to FedEx and UPS "hubs".
They get jobs, to be sure. But they don't charge residents of Memphis and Louisville a premium to ship packages with FedEx and UPS, respectively, simply because they're the "hometown" shippers. In other words, Memphis and Louisville get the benefits of a "hub," without the costs.

If 95% is your definition of "sometimes".
So it's your assertion that 95% of the taxes and fees are in favor of the LCCs? :huh:
 
"No slots exit at ORD".

I may be living in the past then, so you are saying, that any airline may commence ops at ORD?
 
Dizel8 said:
...any airline may commence ops at ORD?
[post="251874"][/post]​
That is correct. Slots were removed at ORD and JFK a few years ago. The only slot controlled airports remaining are DCA and LGA.

Now, having said that, ORD's congestion shot up after the slots were removed. UA and AA were asked to mutually agree to reduce their schedules at ORD in order to reduce the congestion. They complied.
 
Nope. It was a combination of relatively cheap land and relatively educated people.

Yeah right :rolleyes: Remember, Fish claims to be a DEN native...

Except that UA has never had significant SJC service...but that's where the most people in tech are. Northern Virginia became a tech center because of spillover from the defense industry, not because UA flew out of IAD.

UAL has significant service to the Bay Area, including SJC.

But in your world, it's all just a coincidence. :rolleyes:

One really, really rapidly growing metropolitan area. Funny how it's also one of WN's most extensive cities, with 36 nonstop destinations.

What it says is that WN serves big cities. They Cherry pick. PHX is especially suited to WN because they don't have the level of business travel of other equally sized cities. People go there to golf and to die, not to close a business deal.

Ever hear of AirTran? And, anyway, that wasn't one of the eleven...so you're continuing to support my point. Thanks!

You mean Valujet? Yes I've heard of them. They are the LCC that moved in after DAL established a fortress hub that helped grow the city to a level that would support an LCC on the side. If ATL's only airline was Valujet, it would have nowhere near the economic growth and prosperity it enjoys. I'd say look at cities that used to have hubs, and consider the economic effect after the hub closed. compare those cities to ones with hubs.

First of all, MIA is an international gateway, not a hub. Secondly, that metropolitan area is heavily served by three LCCs.

Along with just about every major in the world. I'm saying the LCC traffic is a RESULT of the economic prosperity, NOT a cause of it.

Naming cities doesn't cut it. Show the quantitative economic benefit.

Sorry, i don't have the time to run an economic regression model detailing the various effects of divergant public policies ect. I think it's rather uninformed to think that Intel would say "Hmm we be a like'n that there town, they's gots some bonafide college grads. Although there ain't no airports, we's gonna move there". After speaking with some of the people who make the decisions, I know proxemity to an airline hub, especially one that suits thier particular needs, is a decision variable in deciding where to go.
And BTW, land ain't cheap in DEN. It's a heck of alot cheaper in other places. like near PHX....

OBTW, did you happen to notice that WN flies more domestic passengers than any other airline? They must be doing something right.

to less cities than most airlines. Yes they are smart, they are only concerned with making money, not with the underlying economy of the cities they serve.

No, it's a choice between expensive nonstop service and cheaper connecting service.

Duh, IT'S CALLED A CHOICE. Some people will pay more to have that choice, because it has VALUE. In your LCC model, they MAY get to connect after a 3 hour drive to the nearest 'focus city'. they STILL have that choice with a hub local airline. but if they need it THEY GET A DIRECT FLIGHT THEY OTHERWISE WOULD NOT HAVE HAD. If they use that service, they obviously value it. If it has value it is a plus to the city.

An airport with huge WN presence.

again, which came first, WN or economic growth and being established as an international gateway?

So it's your assertion that 95% of the taxes and fees are in favor of the LCCs?

yes, which ones aren't?
 
mweiss said:
That is correct. Slots were removed at ORD and JFK a few years ago. The only slot controlled airports remaining are DCA and LGA.

Now, having said that, ORD's congestion shot up after the slots were removed. UA and AA were asked to mutually agree to reduce their schedules at ORD in order to reduce the congestion. They complied.
[post="251875"][/post]​

...which was quickly followed by other airlines adding flights, resulting in just about the same level of "gridlock" and less market share for AMR and UAL. Yippee :down:
 
Well, should AMR and UAL be the only ones allowed at ORD?

Just razzing you, but as I mentioned earlier, between the two of you, AA and UAL, you have how many percentage wise of the flights, control how many of the gates?

Just of of curiosity, since you seem to know: How many flights was UAL forced to give up and how many new flights have been added by others?
 
Busdrvr said:
But in your world, it's all just a coincidence.  :rolleyes:
No, I'm saying that you have the cause and effect backwards.

What it says is that WN serves big cities.  They Cherry pick.
When choosing a new market to enter, one goes where the money is. Starting out by serving St. George, Utah, is probably not the best choice.

PHX is especially suited to WN because they don't have the level of business travel of other equally sized cities.  People go there to golf and to die, not to close a business deal.
Sounds like someone who hasn't spent much time in the Valley of the Sun in about 25 years. I've done a pretty good share of business dealing myself in Phoenix, Tempe, and Scottsdale.

They are the LCC that moved in after DAL established a fortress hub that helped grow the city to a level that would support an LCC on the side.
Oy. Talk about revisionism! They entered the market because capacity opened up when EA ceased operations. Atlanta was a rapidly growing city back before 1978, when the CAB decided where you flew.

Along with just about every major in the world.  I'm saying the LCC traffic is a RESULT of the economic prosperity, NOT a cause of it.
So if it's a legacy, it's the cause of prosperity, but if it's an LCC, it's the result of prosperity? That's one amazingly hypocritical argument.

Sorry, i don't have the time to run an economic regression model detailing the various effects of divergant public policies ect.
I didn't run an economic regression model. I took two minutes on Google. You don't have that kind of time? Then you probably don't have the time to learn whether or not your beliefs are matched by reality.

I think it's rather uninformed to think that Intel would say "Hmm we be a like'n that there town, they's gots some bonafide college grads.  Although there ain't no airports, we's gonna move there".
Of course not. They chose a location with a major airport. Notice how many facilities Intel has in western Oregon? No, you probably don't have the time to notice. They do, though...lots of them. PDX isn't a hub for anyone. Intel also has a huge presence in Sacramento. Guess who's the dominant airline in Sacramento? I'll give you a hint...it's an airline based in Texas.

And BTW, land ain't cheap in DEN.
It is when you're comparing to other high EQ regions of the country.
 
Yes they are smart, they are only concerned with making money, not with the underlying economy of the cities they serve.
Oh puhleeze. You're going to try to convince us that UA flies to the destinations that they serve because they're altruistically trying to prop up the underlying economies? :lol:

In your LCC model, they MAY get to connect after a 3 hour drive to the nearest 'focus city'. they STILL have that choice with a hub local airline.
Hmmm...if they are at a hub local airline, they probably have a choice among several connecting carriers. Some are LCCs (who, in many cases, fly to that very same airport), and others are other legacies.

but if they need it THEY GET A DIRECT FLIGHT THEY OTHERWISE WOULD NOT HAVE HAD. If they use that service, they obviously value it. If it has value it is a plus to the city.
And, yet, the fact that the legacy carriers are failing suggests that they don't value it enough to support the legacy carriers. :blink:

So it's your assertion that 95% of the taxes and fees are in favor of the LCCs?

yes, which ones aren't?
[post="251876"][/post]​
PFCs. Segment fees (which, let's not forget, were pushed hard by the legacies because they'd disproportionately affect WN). OK, that's two. Now, since that would be the 5% that are in favor of the legacies, that means that you know of 38 taxes that are in favor of the LCCs. Please list them here.
 
Busdrvr said:
Nope. It was a combination of relatively cheap land and relatively educated people.

You mean Valujet? Yes I've heard of them. They are the LCC that moved in after DAL established a fortress hub that helped grow the city to a level that would support an LCC on the side. If ATL's only airline was Valujet, it would have nowhere near the economic growth and prosperity it enjoys. I'd say look at cities that used to have hubs, and consider the economic effect after the hub closed. compare those cities to ones with hubs.
[post="251876"][/post]​

If the truth be known, it is the presence of the airport itself that fueled the growth of Atlanta. Cast your minds back to the 1950's.

Birmingham, AL was larger and more prosperous than Atlanta, GA. The major airlines operating in the Southeastern United States--then Eastern, Southern, and Delta--along with other nationals that wanted to extend service into the South went to the city of Birmingham and offered to help finance a major new airport for Birmingham. In addition to being bigger than Atlanta and more centrally located in the SE, Birmingham had many fewer "fog" days than Atlanta up on the Piedmont plateau.

Because the airlines stipulated that the airport itself had to be desegregated, Bull Connor (name sound familiar to anyone), the Police Commissioner, told the airline representatives to go jump in a lake. (Well, those were not his exact words. He actually suggested that they each perform an anatomically impossible act upon themselves. But, this is a family bulletin board.)

The airlines then offered the same deal to Atlanta, and, as they say, the rest is history.
 

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