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Old Oct 26, 2014, 12:38 am
  #2042  
cbn42
Moderator: Manufactured Spending
 
Join Date: Jul 2011
Posts: 6,580
Originally Posted by FWAAA
Yes and No. The costs of serving PGV won't increase due to the merger, as it's a US Express regional spoke flown by low-wage PSA and Piedmont, and those employees aren't getting pay raises due to the merger. If PGV made sense before the merger, nothing about the merger changes that equation.
It is true that the costs of serving PGV won't increase due to the merger, but that doesn't mean that profitability won't be affected. Most of the people on the PGV flights are not O&D to CLT, they are connecting to somewhere else. If the flights they connect to are canceled, or reduced, or raised in cost, that may affect the profitability of the PGV flight as well. Airfares are priced between city pairs, not segment by segment, and the revenue generated by the PGV-CLT flight depends very heavily on what connecting options are available from CLT.

In the case of PGV, since US is the only airline there, it may be less of an issue because there is no other airline with service to another hub that residents can deflect to.
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