Delta to Drop Memphis as Hub Airport

Discussion in 'Delta Air Lines | SkyMiles' started by sobore, Jun 4, 2013.  |  Print Topic

  1. sobore
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    sobore Gold Member

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  2. AMPfromBNA

    AMPfromBNA Silver Member

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    A
    I wonder how many codeshare (Skywest, etc) jobs that translates into, in addition to the Delta cuts.


    As a Tennessean, I'm not surprised. Then again, I thought CVG would go first.
     
  3. Gtitan
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    Gtitan Gold Member

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    As a once upon a time NW PE, I really enjoyed Memphis. It was our Southern Hub.:(
     
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  4. skyvan

    skyvan Gold Member

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    When will they label LAX as a hub?
     
  5. USAF_Pride
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    USAF_Pride Gold Member

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    Is this a surprise to anyone? Why CVG still exists, I have no idea. The only thing I can think of is they want to "stick it to" NW locations first.
     
  6. volsfan

    volsfan Silver Member

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    Perhaps it was inevitable, but I always enjoyed flying through Memphis more than any other airport--it was "comfortable." The food offered in the terminal was something that I looked forward to (Memphis bbq) and the people working there were down to earth. Now, everything I fly seems to go through Atlanta--which I would describe as the other end of the comfort spectrum.
     
  7. USAF_Pride
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    USAF_Pride Gold Member

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    Does DL get paid for every pax they run through ATL?
     
  8. icurhere2
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    icurhere2 Gold Member

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    Not surprised as a former Tennessean - MEM mayor A.C. Wharton (also serves on the Higher Education Commission) made trips to beg Anderson for traffic through MEM.
     
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  9. Mike Reed

    Mike Reed Gold Member

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    I'm guessing Southwest steps up flights there...
     
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  10. AMPfromBNA

    AMPfromBNA Silver Member

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    I'm not sure SWA would bump up Memphis. They already own 50% of the Nashville airport gates(and I would guess market share, too).

    I was doing the math, and RDU offers about 55 direct flights on a friday, and thats out of like 5 gates. Memphis will be a ghost town with only 60 flights, unless someone does come in. Perhaps Frontier could see some opportunity there.
     
  11. Mike Reed

    Mike Reed Gold Member

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    Wonder if they'll lose the delta lounge?

    Sent from my iPhone using milepoint
     
  12. Gtitan
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    Gtitan Gold Member

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    That was my favorite World Club in the system. :(
     
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  13. AMPfromBNA

    AMPfromBNA Silver Member

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    Doubtful... RDU, BNA, JAX, FLL, IND, etc., all have clubs, and run less than 60 flights a day. That said, i could see them taking one of their nicer clubs and downgrade it.
     
  14. Gargoyle
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    Gargoyle Milepoint Guide

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  15. Davescj
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    Davescj Silver Member

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    I would add MKE to this list. That said, I think it is sad to see MEM losing so many flights. It is a great airport to change planes in. I wonder why it was so much more expensive to have MEM vs ATL.
     
  16. Seacarl
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    Seacarl Gold Member

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    O/D traffic is more profitable than connecting traffic. ATL generates a lot more O/D traffic than MEM. And a lot of MEM capacity was on CR2's which are not fuel efficient on a per seat basis

    Declines in MEM and CVG were pretty much a given after the merger since ATL and DTW have a more profitable mix of traffic. SLC survives because there isn't a good geographic alternative, and a lot of the RJ connecting destinations from SLC have high fares and no LCC competition.

    It is interesting that CLE seems to be surviving at UA. Perhaps it has enough additional O/D traffic vs. CVG or MEM to be profitable since it doesn't seem that UA needs it for connections with ORD, IAD & EWR all in the vicinity.

    It will be interesting to see if the merged AA/UA keeps hubs in DCA, PHL & LGA/JFK or shrinks... I see PHX vulnerable as a hub, too, maybe even ORD. DFW and CLT are safe.
     
  17. James K.

    James K. Silver Member

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    I agree with you, and yet when I was looking for flights back to DCA from FNT I saw that I could connect through CLE on UA, but not ORD. How weird is that?
     
  18. maksim

    maksim Silver Member

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    I fly delta from PHL, so basically a connection to most destinations, via Detroit, Atlanta, Minneapolis, CVG or SLC.

    I have been to all hubs except SLC, and I must say... Flying today from PHL to DFW via CVG.... I really like CVG. Delta did a nice job with the terminal. Great food choices too... Hehe.
     
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  19. eponymous_coward
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    eponymous_coward Gold Member

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    What is the point of a merger if you're going to get rid of 75% of your hubs post-merger? :confused:

    I mean, really, is AA buying a bunch of new planes just to turn them into beer cans?
     
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  20. LETTERBOY
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    LETTERBOY Gold Member

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    DCA isn't going anywhere. There's too much of a market for people who don't want to schlep out to IAD. I don't know enough to say what's going to happen to PHL/JFK, but if I had to put money on it, I'd say that PHL has an edge simply because it's not slot controlled (I don't have a whole lot of money, though :)) And it's AA/US, not AA/UA. ;)


    I don't think they'll pull out of ORD, Chicago's too big of a market to just abandon to UA. PHX might be vulnerable, but I don't think they'll significantly downgrade there for a while, if ever. Agree on DFW & CLT.
     
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  21. Seacarl
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    Seacarl Gold Member

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    Two comments on this. First is that the combined airline has a lot of overlapping hubs and focus cities. They certainly don't need connecting banks at each of JFK/LGA, PHL and DCA. Nor do they need LAX, PHX & DFW. If you start reducing connecting traffic that also makes O/D more vulnerable, see MEM and CVG for the network effect.

    Second is that while AA has long history at its 5 cornerstones, Doug Parker doesn't, and he is able to make hard, objective decisions. It will simply be based on finances - which hubs and routes are profitable and which aren't. It may not happen right away, but over time he surely will start chopping less profitable operations. He has already shrunk at LGA once before, and closed LAS.
    I think it will be a financially driven decision. He's competing with both UA & WN at ORD, and I believe he has the #3 operation. Chicago yields are down. Maybe it will just be a smaller operation. But there aren't many markets that he cannot serve for connecting traffic from DFW, CLT & PHL.
    The whole point of the merger is to find redundancies and efficiencies. Some of that is back office people. And some of it is in routes. If you cut the 10% least profitable flights, your operating margin should go up. That's part of the equation of the merger.
     
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  22. austin_res

    austin_res Silver Member

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    Plus AA/US are a solid #1 at PHL, and #3 at JFK (and #4 in New York City as a whole). Parker likes being #1 at a hub.
     
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  23. eponymous_coward
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    eponymous_coward Gold Member

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    You're talking about a lot less flights if you're dropping JFK, DCA, LGA, PHL, PHX and ORD and going with CLT/MIA/DFW/LAX. That's probably well over half of the combined airline. Serving 50 million potential customers out of hubs isn't anything to sneeze at.

    Giving up the #1 position in the #1 premium longhaul market (JFK-LHR in conjunction with BA), along with the #1 position in the #1 premium transcon market (JFK-SFO/LAX) is crazypants if you're interested in running a profitable airline. They're not going to give up NYC. It would be suicidal.

    Parker used to work at AA, you know... so assuming that he's going to run AA like he ran US (out of much less favorable hubs) isn't a safe assumption.
     
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  24. Seacarl
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    Seacarl Gold Member

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    I'm not at all predicting they are going to drop all those. I think they will de-emphasize one of NYC, PHL or DCA. If I were to make a prediction, they keep PHL & DCA largely as is, but focus NYC flying on O/D traffic, sending flow international traffic to PHL and domestic connecting at PHL & DCA, and each NYC flight needs to be profitable or is subject to cuts.
    Out west I think either PHX or LAX see reductions. In fact maybe they both do, though PHX to a greater extent.
    I don't think they will give on their transcons. Heck even UA flies premium transcons out of JFK despite having their hub over at EWR.
    No I think Parker is going to pick the strongest pieces out of each airline and cut the weakest. I think the strongest are MIA, CLT, DFW and likely PHL. I expect he will shrink the combination by 10-20% over time and/or shift that capacity from weaker to stronger routes and hubs. He's willing to shake things up and challenge the status quo - he did quite a bit of that over at HP/US. LAS, PIT and LGA all show it.
     
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  25. Mike Reed

    Mike Reed Gold Member

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    You don't cut ANY profitable flights, period, in this market if they're "standalone" flights. You cut unprofitable, unsubsidized flights in a heartbeat.

    You consolidate less profitable flights that flown together as a replacement (or a 3:2 reduction, etc.) into fewer, more profitable flights.

    Sent from my iPhone using milepoint
     

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