Originally Posted by
Xero
I don't think it's a blow. We all knew it was going to happen.
Also, one thing people here keep forgetting is that this is one company's decision. AA is not the bellwether corporation that knows which market is good and which is bad.
It's not just AA. DL has reduced considerably since the 2008 NW merger United's presence is smaller today than 2005 and certainly pre-9/11.
Per BTS statistics, United plus Skywest had fewer boardings in the twelve months ending June 30, 2011 compared to the twelve months ending June 30, 2007. The Skywest numbers also include their operations for Delta-so even assuming Skywest didn't operate a single flight for DL (which isn't true) United HAS indeed retreated at SFO.
Total Enplanements Twelve Months ending June 30, 2011 (in thousands):
United: 10,130
Skywest: 2,995
Total=13,125
Total Enplanements Twelve Months ending June 30, 2007 (in thousands):
United: 10,792
Skywest: 2,364
Total=13,156
SOURCE:
http://www.transtats.bts.gov/airports.asp?pn=1
Skywest does have significant operations for DL at SFO offering 10x daily service to Los Angeles and several frequencies to Salt Lake City (augmented with mainline service). So even assuming Skywest didn't board a single passenger on behalf DL, UA's SFO operation is smaller today than in 2007 and certainly smaller than in 2005 or 2000. Contacting UA's investor relations and requesting information about the SFO operation will reveal that fewer flights operate today than in 2005 and UA also has fewer SFO-based employees today.
Besides, having a greater proportion of flights operated with regional carriers doesn't "bode well" for the viability of a hub as other posters have incited.
The SFO overhaul base has also been downsized substantially even with local incentive money provided to retain jobs. Like it or not, Chicago is UA's world headquarters, Houston will remain the largest hub, and Newark is the premier international gateway. The 787 will allow more routes to be served from those cities where UA can handle passengers at lower costs than SFO which further diminish SFO's relevance in the UA system.
Don't let the facts get in the way.