United Airlines President: Leaving New York’s JFK ‘Was the Wrong Decision’ {2017}
#271
Join Date: Apr 2011
Programs: WN, AA, UA, DL
Posts: 1,313
There are no contradictions. You're missing the time element of the picture. The customers are gone. They can be won back, but at a price. The price today is much higher than it would have cost to simply retain them in the past. We're talking about the JFK customers. The customers willing to stick wtih UA and use EWR have remained (or some of them have).
Now you're agreeing with me. In order for both of Kirby's statements/implications to be true, JFK had to be minutely marginal on the overall bottom line. That means it was worthy of consideration to be cut, and it causes his "wrong decision" statement to be a gross exaggeration.
A parallel example in a person's life may be someone regretting selling their house in California and moving to Texas. Can it be undone? Sure, but depending on how much time has elapsed, the cost to replace the original home may now be prohibitive. By the time you replace the original home at current rates, search for a job, relocate again, etc., it's entirely possible selling the California house and moving to Texas was a mistake. It's also possible that moving back doesn't make sense either now that you're in that new situation.
I don't think you are really comprehending the ideas that 2014/2015 deals were both actual slot swaps deals. In the case of UA, it didn't work out because EWR de-slotted. But at the moment, no one is selling JFK slots at the quantity that UA is looking to obtain.
UA could wait for slots at JFK to loosen up or deslot completely, but it would still need to find gate space, which is a huge issue.
And at least AA has no interest in having UA back into JFK.
UA could wait for slots at JFK to loosen up or deslot completely, but it would still need to find gate space, which is a huge issue.
And at least AA has no interest in having UA back into JFK.
You're also assuming that airlines won't sell for any price. That goes against reason.
Another fact he's missing is that when UA started p.s., the offered a hard product that for a time was markedly better than anything the competition had. Now? Lie flat seats on TCONs are plentiful, so what does UA have to offer that sets them above the competition? Polaris seats and soft product? Please, they can't even get enough seats to complete the brand new widebodies they've purchased.
#273
Join Date: Dec 2016
Posts: 1,485
Oh I know that. And I make sure to point that out since it supports my position. It proves that there's more than one way to make a deal. It's also only partly true. The DL/UA deal ended up being a straight long-term lease sell of the JFK slots. And with that we know the market price at the time. It has to be exponentially higher now to possibly keep UA out.
You're also assuming that airlines won't sell for any price. That goes against reason.
You're also assuming that airlines won't sell for any price. That goes against reason.
I don't know what the actual price is, but I think you are far more likely to get a deal through slot/gate swap than outright purchase.
At the moment, UA feels the price is too high, but who knows, maybe the price will get better over time. Either way, the assumption that UA can keep sticking around at EWR and not get competition from B6/DL/AA is also flawed. There is no reason DL or B6 would not be interested in putting premium transcon out at EWR-LAX/SFO at some point now that slots are no longer an issue out there. UA can keep playing defense or it can go on offense.
#274
Join Date: Feb 2002
Location: NYC: UA 1K, DL Platinum, AAirpass, Avis PC
Posts: 4,599
I'm one of them - even when it's other people's money. But I know that's not the typical high dollar flier.
Google maps has the hard, unbiased data based on actual GPS enabled historic travel times point to points.
Le Parker Meridien (a tough place to get to either direction) to JFK and EWR on an afternoon at 330, catching an early evening departure....
EWR: 35 min - 1 h 10 min
JFK: 1 h 5 min - 2 h 10 min
Coming *from* the airport at 730am...
EWR: 35 min - 1 h 40 min
JFK: 1 h - 2 h 10 min
Sure, the JFK airtrain is nicer than the EWR one, and LIRR runs more often. In fact the express bus is faster to EWR than the train.
But for the typical HVF who isn't going to mess with transit, and wants a private Uber or car to handle phone calls, etc and ride door to door nonstop.
EWR routes are much more reliable when it comes to traffic.
JFK battles all the Long Island commuters funneled into the LIE.
EWR...Jersey commuters are dispersed north and south.
It's simple geography backed by hard data.
But you won't get this board that gets some sort of self esteem kick out of JFK to face the facts these images show.
http://imgur.com/a/KGAzl
http://imgur.com/a/54MpC
#275
FlyerTalk Evangelist
Join Date: Mar 2010
Location: DAY
Programs: UA 1K 1MM; Marriott LT Titanium; Amex MR; Chase UR; Hertz PC; Global Entry
Posts: 10,183
Those weren't the market price. Those were price used so they can get the deals past DOT. The deals were slot swap.
I don't know what the actual price is, but I think you are far more likely to get a deal through slot/gate swap than outright purchase.
At the moment, UA feels the price is too high, but who knows, maybe the price will get better over time. Either way, the assumption that UA can keep sticking around at EWR and not get competition from B6/DL/AA is also flawed. There is no reason DL or B6 would not be interested in putting premium transcon out at EWR-LAX/SFO at some point now that slots are no longer an issue out there. UA can keep playing defense or it can go on offense.
I don't know what the actual price is, but I think you are far more likely to get a deal through slot/gate swap than outright purchase.
At the moment, UA feels the price is too high, but who knows, maybe the price will get better over time. Either way, the assumption that UA can keep sticking around at EWR and not get competition from B6/DL/AA is also flawed. There is no reason DL or B6 would not be interested in putting premium transcon out at EWR-LAX/SFO at some point now that slots are no longer an issue out there. UA can keep playing defense or it can go on offense.
#276
Join Date: Feb 2002
Location: NYC: UA 1K, DL Platinum, AAirpass, Avis PC
Posts: 4,599
But do you think a West Coast flyer who can't figure out that EWR and JFK are pretty much equidistant from Manhattan is going to attempt to figure out public transit from any NY area airport?
I write this from a Delta LAX-JFK transcon flight, to be clear. I used UA on the outbound.
And I was born and raised in the Bay Area.
#277
Join Date: Jul 2013
Location: MRY - CNX - TXL
Programs: UA 1K / *G / Marriott PE / Expedia Gold+ / Hertz PC
Posts: 7,058
Meanwhile on the other side of the country I am happy that SJC is getting more flights.
Saves me 2 hours round trip and it's possible to get family or friends to drop me off or pick me up.
Worked for me when I went to IAH, I have an upcoming ORD trip and later in the year I found R space to EWR so I used my GPUs instead of poking around for SFO. During ski season if it links up with the MTJ flight through DEN I'd take it then .
Saves me 2 hours round trip and it's possible to get family or friends to drop me off or pick me up.
Worked for me when I went to IAH, I have an upcoming ORD trip and later in the year I found R space to EWR so I used my GPUs instead of poking around for SFO. During ski season if it links up with the MTJ flight through DEN I'd take it then .
#278
A FlyerTalk Posting Legend
Join Date: Apr 2001
Location: PSM
Posts: 69,232
No. It is a bid to keep some premium traffic that is looking strongly at JetBlue with Mint plus faster, free wifi on board. Or that DL is putting lie-flats on the SFO-BOS route, too.
#279
A FlyerTalk Posting Legend
Join Date: Aug 2003
Programs: UA 1K 1MM (finally!), IHG AMB-Spire, HH Diamond
Posts: 60,212
i guess all the carriers choosing JFK v EWR are wrong and smisek is right. It is a possibility.
#280
Join Date: Feb 2008
Programs: 6 year GS, now 2MM Jeff-ugee, *wood LTPlt, SkyPeso PLT
Posts: 6,526
-first flight is a 737-800
- then its a 772 showing Hawaii Configuration (which might become the horrible 777 Domestic with its seats that are 1" narrower in Y than on the 737),
-then the horrible 777 domestic with its horrible Y seats
- than a 757-300
- then a 737-900
- then the red-eye is a 737-900.
Not sure what the competition with Mint is. A few (ok one) bird with old ITPE coffin J, but only one plane with good product on it, which is the 757-300.
#281
Join Date: Mar 2015
Location: NYC (Primarily EWR)
Programs: UA 1K / *G, Marriott Bonvoy Gold; Avis PC
Posts: 9,017
except, the reports that it is all lie flat are not exactly correct. Next Friday (May 5)
-first flight is a 737-800
- then its a 772 showing Hawaii Configuration (which might become the horrible 777 Domestic with its seats that are 1" narrower in Y than on the 737),
-then the horrible 777 domestic with its horrible Y seats
- than a 757-300
- then a 737-900
- then the red-eye is a 737-900.
Not sure what the competition with Mint is. A few (ok one) bird with old ITPE coffin J, but only one plane with good product on it, which is the 757-300.
-first flight is a 737-800
- then its a 772 showing Hawaii Configuration (which might become the horrible 777 Domestic with its seats that are 1" narrower in Y than on the 737),
-then the horrible 777 domestic with its horrible Y seats
- than a 757-300
- then a 737-900
- then the red-eye is a 737-900.
Not sure what the competition with Mint is. A few (ok one) bird with old ITPE coffin J, but only one plane with good product on it, which is the 757-300.
#282
Join Date: Jan 2005
Location: New York, NY
Programs: UA, AA, DL, Hertz, Avis, National, Hyatt, Hilton, SPG, Marriott
Posts: 9,467
As noted, BOS-SFO gets a premium TCON hard product on all flights effective June 8.
#283
Join Date: Apr 2017
Programs: SPG
Posts: 41
Sure, the JFK airtrain is nicer than the EWR one, and LIRR runs more often. In fact the express bus is faster to EWR than the train.
But for the typical HVF who isn't going to mess with transit, and wants a private Uber or car to handle phone calls, etc and ride door to door nonstop.
But for the typical HVF who isn't going to mess with transit, and wants a private Uber or car to handle phone calls, etc and ride door to door nonstop.
I agree with this. I haven't been on the train from either JFK or EWR in ages. I just don't have the luxury to not be effectively accessible after, say, a 5 hour flight, even if I had wi-fi on said flight. Most business travelers I know will fly into JFK v EWR based on their preferred airline, nothing else. The only thing I care about is whether I can easily get a cab / Uber.
#284
FlyerTalk Evangelist
Join Date: Nov 2014
Location: MSP
Programs: DL PM, UA Gold, WN, Global Entry; +others wherever miles/points are found
Posts: 14,467
#285
Join Date: Jul 2009
Location: WAS
Programs: UA Silver, Marriott Gold, IHG Silver, Hilton Silver, Hertz PC, National Exec Elite, Avis PC
Posts: 1,303
I still have yet to fly a p.s. flight from EWR where J isn't totally full or where you can apply instruments or book in R.