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Boofer

Posted: Mon Dec 15, 2008 05:11:45 pm

Boofer
Site Admin

Joined: 17 Jun 2005
Posts: 949
Location: Carmel, IN

I put this in the DL forum since it's CVG, but this article from the Cincy Enquirer talks about the challenges the airport faces as DL reduces its footprint there.

CVG at a Turning Point

I found this aritcle linked from a recent post on the Urbanophile's blog (thanks for a great blog as always, Aaron). I commented in his blog and I reiterate here: this is a great example of why it's good NOT to have a fortress hub here. While CVG's nonstop flights to anywhere were an economic-development selling point for a long time, the airport (and it's community) became overly dependent on DL. With a 91% share at CVG (not unlike the dominance by NW @ MSP, CO @ CLE, DL @ ATL, etc.), the fares were very high and remain high today. The fact that Cincy-area travellers drive to DAY, LEX, SDF, CMH, and IND for cheaper flights should not come as a surprise to anyone and has been discussed on this board as an advantage for IND. While we haven't had the convenience of the multitude of nonstop flights ex-IND, it sure beats paying through the nose to fly somewhere. The great irony to me is this: Cincy-area officials used the DL CVG hub as a selling point to prospective businesses looking to expand or relocate - because their people could LEAVE the area very conveniently. Indy (and for that matter, Louisville) officials have used their airports' low fares as a selling point to attract conventions and tourism so people could COME TO the area very conveniently. Which is the better strategy in the long run?

If you're like me and believe that the latter is better, then perhaps we shouldn't be so focused on nonstop TATL service. Besides TATL service is just not gonna happen until an airline can be sure that they'll make more money doing it here than they will doing it somewhere else. Maybe instead, we should be focused on attracting greater volumes of people, regularly, from new destinations. It's not about Indy folks wanting to fly away somewhere - create the demand for folks from somewhere else to want to fly HERE. Certainly, we are doing that to a large degree, as the ICVA and others start to book the expanded convention center, as we get closer to the Final Fours and the Superbowl. But perhaps that is a strategy that works better in the case of a city like Indy. We'll get nonstop service from SEA, PDX, MSY, and elsewhere, when people from those towns start demanding to come here.

Can I get a peanut crumb with that thimble of Coke?

Indy

Posted: Mon Dec 15, 2008 06:33:18 pm

Indy
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Joined: 15 Jun 2005
Posts: 2316
Location: Indianapolis, IN

But you get airlines like Delta that are ego driven and would rather run flights through their hubs instead of provide someone nonstop service even if the demand exists because its more important for them to have the largest operation in the country instead of providing the best customer service.

Yes that is my opinion of Delta. ATL is Delta. It is the size matters mentality. Mine is bigger than yours.

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Boofer

Posted: Fri Dec 19, 2008 12:47:10 pm

Boofer
Site Admin

Joined: 17 Jun 2005
Posts: 949
Location: Carmel, IN

All due respect, while there is certainly ego at work, it's not driving major decisions at DL or anywhere else. Dollars trump egos. Every single time. As you know, there are a lot of things to consider with respect to service and route issues. Those include staffing, repair basing, equipment availability and fleeting, asset utilization, etc. There are also a whole host of strategic considerations. But at the end of the day, it all comes down to money, money, money.

Can I get a peanut crumb with that thimble of Coke?

Indy

Posted: Fri Dec 19, 2008 02:43:42 pm

Indy
Site Admin

Joined: 15 Jun 2005
Posts: 2316
Location: Indianapolis, IN

I don't know. In normal business I'd agree. But when it comes to the airline industry I think ego dominates. I think some of these people would rather sink than give up market share.

Food4Geeks.com - Even Geeks Like To Eat.

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