RIP CVG
May 28, 2020, 7:01 am
#706
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CVG-CDG benefits from having guaranteed GE Aviation parts going to Airbus in France, along with executives. Not to mention other area companies.
I've heard from several sources that this flight is in the top 5 of Delta's most profitable international flights. I think it returns when things normalize.
I've heard from several sources that this flight is in the top 5 of Delta's most profitable international flights. I think it returns when things normalize.
May 28, 2020, 9:02 am
#707
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The latter may be true, but not because of the former. Cargo makes up less than 2% of pax airline's revenues (pre-COVID of course). Additionally CVG (and ILN) is one of the largest air cargo hubs in the US, there's plenty of other options to ship things to Europe. Then of course there's also the UPS Worldport hub 2 hours away.
May 28, 2020, 9:30 am
#708
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On this particular flight, cargo is a big factor. As mentioned, mostly specialized GE engine parts for Airbus. It seems that GE has decided that shipping the parts via this flight is better than using a cargo carrier (perhaps as part of an agreement to keep the flight running for business traffic as well).
May 28, 2020, 5:43 pm
#709
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If that's true, I guess it's not surprising that GE is in the shape it's in. Most other companies know there are less expensive ways to manage inventory. I find it hard to believe GE (and its customers (i.e. Airbus)) wouldn't stock parts in Europe (and every other major region). Especially since they know far in advance what the demand will be from customers like Airbus.
GE Aviation is north of Cincinnati, and they send parts to Airbus' main facility in Toulouse. It's not that hard to figure out.
May 28, 2020, 6:08 pm
#710
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I would venture a guess that the remaining routes at CVG are profitable or they would have been pulled a long time ago. Delta also recently renewed the lease for their concourse. No way CVG would let them out of it.
May 28, 2020, 8:18 pm
#711
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If that's true, I guess it's not surprising that GE is in the shape it's in. Most other companies know there are less expensive ways to manage inventory. I find it hard to believe GE (and its customers (i.e. Airbus)) wouldn't stock parts in Europe (and every other major region). Especially since they know far in advance what the demand will be from customers like Airbus.
May 28, 2020, 9:16 pm
#712
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https://www.cvgairport.com/about/new...-use-agreement
Also, AA moved to Concourse B in 2018 and took gates 18, 20, 22, 24, and 26 (to make room for WN). Presumably they are either sub-leasing them from DL and DL was given some sort discount in their lease as I doubt DL would let AA use them without some kind of arrangement that reduced their expenses.
I still believe that DL will retain it's CVG focus city due to the corporate contracts, but they aren't being held by any long term leases at this point (concourse C was leased until 2025, but CVG let DL out of it early so they could tear it down).
Last edited by xliioper; May 28, 2020 at 9:27 pm
May 28, 2020, 9:37 pm
#713
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The latter may be true, but not because of the former. Cargo makes up less than 2% of pax airline's revenues (pre-COVID of course). Additionally CVG (and ILN) is one of the largest air cargo hubs in the US, there's plenty of other options to ship things to Europe. Then of course there's also the UPS Worldport hub 2 hours away.
May 28, 2020, 10:12 pm
#714
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They renewed it for 5 years in 2015 and it expires at the end of this year --
https://www.cvgairport.com/about/new...-use-agreement
Also, AA moved to Concourse B in 2018 and took gates 18, 20, 22, 24, and 26 (to make room for WN). Presumably they are either sub-leasing them from DL and DL was given some sort discount in their lease as I doubt DL would let AA use them without some kind of arrangement that reduced their expenses.
I still believe that DL will retain it's CVG focus city due to the corporate contracts, but they aren't being held by any long term leases at this point (concourse C was leased until 2025, but CVG let DL out of it early so they could tear it down).
https://www.cvgairport.com/about/new...-use-agreement
Also, AA moved to Concourse B in 2018 and took gates 18, 20, 22, 24, and 26 (to make room for WN). Presumably they are either sub-leasing them from DL and DL was given some sort discount in their lease as I doubt DL would let AA use them without some kind of arrangement that reduced their expenses.
I still believe that DL will retain it's CVG focus city due to the corporate contracts, but they aren't being held by any long term leases at this point (concourse C was leased until 2025, but CVG let DL out of it early so they could tear it down).
May 28, 2020, 11:11 pm
#715
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May 28, 2020, 11:41 pm
#716
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May 29, 2020, 6:47 am
#717
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Seriously? You replenish your inventory with one of the most expensive shipping methods there is? Of course not, you ship it to other distribution centers using cheaper methods, i.e. via boat. Then parts are in position when needed and can be sent to the customer's location via truck.
Thanks for stating what's already been established...slow clap.
Thanks for stating what's already been established...slow clap.
May 29, 2020, 7:02 am
#718
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As the GE Aviation division brought in nearly $7 billion in profit for 2019 and just over $6 billion in profit on 2018, as noted in simple Google searches for GE Aviation profit, something tells me theyre doing something right and have been for a while. Manufacturing parts across the globe and shipping parts like this is quite common in the aerospace industry.
May 29, 2020, 7:40 am
#719
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GE Aviation != GE, but good try with the straw man. GE Aviation is a part of GE (for better or worse) and they don't operate in a bubble. Like I alluded to: GE has lost money the last 3 full years. Most recently -5bil in 2019. Their stock is at a 10 year low, while the rest of the market is significantly higher. I sure as heck wouldn't invest in that.
You could just admit you were wrong or unaware and say Gee I didnt that despite cargo being small potatoes across the network as a whole that some specific routes do operate profitably in large part due to cargo. But based on your last response and responses to other posters, I guess youd rather be argumentative.
Last edited by ATOBTTR; May 29, 2020 at 7:45 am
May 29, 2020, 9:03 am
#720
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Across the network as a whole cargo revenue is not a commercial passenger airlines primary source of revenue but there are many routes that sustain significantly on cargo revenue. CVG-CDG is one, as noted with GE Aviation parts going to Europe . ATL-LIM/LIM-ATL is another route that garners signtivant cargo revenue (fresh produce from the area) and is the reason DL runs widebodies (including 777s at one point) to LIM.