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Thread: ExpressJet told United in January 2014 that it needs to cut flying
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Old Feb 11, 2014, 7:10 am
  #11  
fly18725
 
Join Date: May 2013
Posts: 3,361
Originally Posted by spin88
I for one don't bash UAL for dumping the CLE hub. Running a RJ hub, with ORD next door, made no sense. Frankly, I'm surprised it did not happen sooner.

This said, I will comment that Delta saw this coming, and went to a strategy of "upgaging" which allowed it to deal better with this issue while also reducing its CASM. AA did this to a lesser degree. Jeff? Well he planed to add only 17 E-175s per discussion in the 4Q 2013 quarterly results, 27 E-175s per the fleet plan (I don't know which is correct). Jeff now has the most capacity in RJs and no plan, other than shaving ASMs, to try to address it.
In addition to the favorable contract Delta negotiated in BK, they also had the foresight to restructure 3 contract carriers, eliminating their 50 seat jets at once.

United's E-175 delivery stream is dependent on Embraer. The can't ramp up production to get United deliveries faster - United must take deliveries as they are available.
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