Article on future of MSP
#1
Original Poster
Join Date: Mar 2007
Posts: 302
Article on future of MSP
http://www.startribune.com/business/...UvDEhiaE3miUsZ
Read the comments section. Many people believe all the MAC needs to do is tell Delta they can't have so many gates, and the other airlines will then magically begin additional service to new cities.
I don't think they understand the industry, and I think they should be careful what they wish for.
Some things that I question about the article.
He talks about other airlines increasing market share, and names Southwest ( a new entrant) and US Airways as examples. He claims U.S. Airways grew from 117,000 passengers in 2005 to 900,000 last year, but this is likely entirely from their merger with America West, and so that number is misleading. I would also guess that since US Airways is no longer serving LAS from MSP, that number is now smaller. Air Tran has grown their market share, and that is a good example.
He is using data about total enplanements. The merger did mean that some markets were better served by connecting some passengers through different airports, and so they are able to right size markets and get rid of redundancy. But when he talks about the health of the airport, he should be using O&D numbers, which still remain strong.
For all these reasons, I don't get the sense the author doesn't have enough background information to be writing an editorial like this.
Read the comments section. Many people believe all the MAC needs to do is tell Delta they can't have so many gates, and the other airlines will then magically begin additional service to new cities.
I don't think they understand the industry, and I think they should be careful what they wish for.
Some things that I question about the article.
He talks about other airlines increasing market share, and names Southwest ( a new entrant) and US Airways as examples. He claims U.S. Airways grew from 117,000 passengers in 2005 to 900,000 last year, but this is likely entirely from their merger with America West, and so that number is misleading. I would also guess that since US Airways is no longer serving LAS from MSP, that number is now smaller. Air Tran has grown their market share, and that is a good example.
He is using data about total enplanements. The merger did mean that some markets were better served by connecting some passengers through different airports, and so they are able to right size markets and get rid of redundancy. But when he talks about the health of the airport, he should be using O&D numbers, which still remain strong.
For all these reasons, I don't get the sense the author doesn't have enough background information to be writing an editorial like this.
#2




Join Date: Jan 2004
Location: MSP
Programs: AA Plat Pto, IHG Plat, HH Gold, Hyatt Globalist
Posts: 2,593
First, as background, Strib user comments are generally beyond Crazytown, more so than other news sites.
I read the article and didn't see much of a point beyond warped civic pride. I really don't care how the airport ranks against others worldwide, nationally, or in the Delta world. I just want to get where I want to go in a timely stress free manner, MSP still works well for that. The move to RJ flying is not limited to DL or MSP.
I am getting the feeling that the author has recently taken a Jetblue flight and drank the Koolaid. That is the only "low fare carrier" not operating at MSP that I could see someone wanting. People don't seek out Spirit do they?
I read the article and didn't see much of a point beyond warped civic pride. I really don't care how the airport ranks against others worldwide, nationally, or in the Delta world. I just want to get where I want to go in a timely stress free manner, MSP still works well for that. The move to RJ flying is not limited to DL or MSP.
I am getting the feeling that the author has recently taken a Jetblue flight and drank the Koolaid. That is the only "low fare carrier" not operating at MSP that I could see someone wanting. People don't seek out Spirit do they?
#3
Join Date: Apr 2005
Location: MSP
Programs: Delta PM, Hertz Plat
Posts: 1,224
As a survivor of the the USAir pullout of PIT and now a live witness to the de-fortressfication of MSP, I see the writing on the wall clearer than most. I do not think that MSP will become the ghost town that PIT now is, however the future of MSP will be quite different than the past. DL clearly favors DTW for being the international gateway. That means lower numbers of connecting flights feeding the lucrative international routes for MSP. In turn, that means the O&D travelers will have less DL flights to select from and less direct routes.
So, MSP will have fewer DL flights and the opportunity does exist for other carriers to come in. This will be good for prices (see PIT) however, the new carriers will NEVER make up for the losses from the NWA to DAL transition. One comment after the article stated that the Lindbergh Terminal parking is full Tues-Thurs. The parking lot at PIT is also fuller than ever, but with less total flights by a mile from its USAir hub status. More O&D, less total flights. Sounds like the direction of MSP.
So, MSP will have fewer DL flights and the opportunity does exist for other carriers to come in. This will be good for prices (see PIT) however, the new carriers will NEVER make up for the losses from the NWA to DAL transition. One comment after the article stated that the Lindbergh Terminal parking is full Tues-Thurs. The parking lot at PIT is also fuller than ever, but with less total flights by a mile from its USAir hub status. More O&D, less total flights. Sounds like the direction of MSP.
#4
Join Date: Sep 2007
Programs: DL DM
Posts: 241
I just recently arrived into MSP from NRT. My impression was that Delta isn't really considering this a hub. Maybe more an overflow hub for DTW? The immigration/customs area is rather small and it looks like most domestic flights are CRJs . It feels a bit like Memphis, which I guess is the overflow for ATL.
With less and less airlines, there will be a trend to fewer larger hubs. In particular Delta has some savings potential which I think they in part didn't realize yet because they have to honor some of the pre-merger contracts.
CVG, MEM, MSP are certainly "weak" right now. I would bet that Delta would rather shift resources further west (SEA?, which more SEA-Asia flight?)
With less and less airlines, there will be a trend to fewer larger hubs. In particular Delta has some savings potential which I think they in part didn't realize yet because they have to honor some of the pre-merger contracts.
CVG, MEM, MSP are certainly "weak" right now. I would bet that Delta would rather shift resources further west (SEA?, which more SEA-Asia flight?)
#5
FlyerTalk Evangelist



Join Date: Sep 2002
Location: IND
Programs: DL PM & 2MM™, Lifetime HHonors Diamond
Posts: 21,130
I don't see that at all. I think it is a full fledged hub and I think Delta thinks the same thing.
The "weak" player in this is CVG. This is relative ghost town to what it once was. Is there any evidence that Delta would "rather shift resources further west"?
The "weak" player in this is CVG. This is relative ghost town to what it once was. Is there any evidence that Delta would "rather shift resources further west"?
#6
A FlyerTalk Posting Legend




Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 102,617
Just a clarification: this piece didn't appear on the editorial page, but on the first page of the Sunday business section. It was apparently written by a business columnist.
#8
A FlyerTalk Posting Legend




Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 102,617
#10
Join Date: Nov 2006
Location: CHI/MSP
Programs: Delta Platinum, United Prem Exec
Posts: 1,334
Plenty. Look at the increased Asia flying out of SEA and the addition of a 767 pilot base there. And note the smaller aircraft flying from MSP, while larger aircraft and new routes are being put at other hubs.
#11
A FlyerTalk Posting Legend




Join Date: Sep 2009
Location: Minneapolis: DL DM charter 2.3MM
Programs: A3*Gold, SPG Plat, HyattDiamond, MarriottPP, LHW exAccess, ICI, Raffles Amb, NW PE MM, TWA Gold MM
Posts: 102,617
#12
FlyerTalk Evangelist


Join Date: Aug 2004
Location: The best state in the USA - Florida!
Programs: Marriott Titanium/LT Plat, AS Titanium, Disney AP
Posts: 14,532
Ah...I thought it was part of the FlyerTalk lexicon now (it's been popping up on other threads over the past week...)
#13


Join Date: Nov 2004
Location: Nashville
Programs: DL DM 3 MM AA PLAT HH Lifetime Diamond Marriott Plat AMB lifetime titanium Hertz PC
Posts: 6,315
I just recently arrived into MSP from NRT. My impression was that Delta isn't really considering this a hub. Maybe more an overflow hub for DTW? The immigration/customs area is rather small and it looks like most domestic flights are CRJs . It feels a bit like Memphis, which I guess is the overflow for ATL.
With less and less airlines, there will be a trend to fewer larger hubs. In particular Delta has some savings potential which I think they in part didn't realize yet because they have to honor some of the pre-merger contracts.
CVG, MEM, MSP are certainly "weak" right now. I would bet that Delta would rather shift resources further west (SEA?, which more SEA-Asia flight?)
With less and less airlines, there will be a trend to fewer larger hubs. In particular Delta has some savings potential which I think they in part didn't realize yet because they have to honor some of the pre-merger contracts.
CVG, MEM, MSP are certainly "weak" right now. I would bet that Delta would rather shift resources further west (SEA?, which more SEA-Asia flight?)

