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DL Notifies EAS, May Drop up to 24 (PMNW) markets

DL Notifies EAS, May Drop up to 24 (PMNW) markets

Old Jul 19, 2011, 4:27 am
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MN is being hit by cuts by DL, but that is not the only traditional NW "home" area market to be hit. MI and WI are also on the "cut itself into (further) profitability" DL scheme.

Originally Posted by mtkeller
Wow, ND will have more airports (FAR, BIS, GFK, MOT) with scheduled DL service than MN if all these destinations are cut. (ISN and DIK are currently EAS subsidized with Great Lakes service, codesharing with UA and F9.)

I'm wondering if DL isn't taking the disarray in MN state government as an opportunity to axe a bunch of these destinations.

Could they get EAS subsidy to reduce frequency to something like three flights weekly on a 50-seat CRJ, or does EAS subsidization require daily service?
ND is economically booming in a way that MN is not.

EAS is a federal program that hasn't dropped off the federal government's radar because of the impasse in St. Paul, MN.
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Old Jul 19, 2011, 4:54 am
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Originally Posted by GUWonder
EAS is a federal program that hasn't dropped off the federal government's radar because of the impasse in St. Paul, MN.
True, but not all the proposed service cuts are EAS markets, so the federal government isn't involved. With MN politicians distracted by their own mess, they're less likely to be yelling at DL until it's all done.
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Old Jul 19, 2011, 5:00 am
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Originally Posted by BNAChairman
I used to travel to many of these small places in a previous job. Whenever I asked people who lived there if they used their local airport they almost always laughed and then said they made the drive to XYZ econo hub or spoke for better fares and direct flights. Time to pull the plug on the EAS.

Country folk are used to driving long distances. They do live in the COUNTRY after all.
It's very true. I grew up an hour from DIK and 100 miles from BIS. Leisure travellers from all of SW ND drive to BIS (or RAP) to fly, because the fares out of DIK are insane. Business travellers can pay the fares because the lost time of long drives cost more than the higher fares. My parents drove to RAP to fly to ATL to visit me because it was nearly $200 cheaper than BIS and $150 cheaper than FAR (and a shade closer than driving to FAR).

GFK is a DL monopoly, and I think a lot of people there will drive 70 miles to FAR for better fares. Similarly, people will drive from FAR to MSP to fly a LCC if they get a real cheap fare and have a group of people going. Driving a few hours to save money is not a big deal to those in the Upper Midwest.
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Old Jul 19, 2011, 5:47 am
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MSP de-hub

Originally Posted by mtkeller
Wow, ND will have more airports (FAR, BIS, GFK, MOT) with scheduled DL service than MN if all these destinations are cut.

I'm wondering if DL isn't taking the disarray in MN state government as an opportunity to axe a bunch of these destinations.
Ya darn tootin, The 2nd phase of the MSP de-hub by the ATL folks...
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Old Jul 19, 2011, 5:48 am
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Originally Posted by lsugolfer
...
Doesn't surprise me that the NYT thinks EAS is a good idea.
This is a tough one for the NYT...on one hand EAS is a nice juicy federal program which they have to love, but on the other hand it helps small town rural American people which the NYT and its readers hate.
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Old Jul 19, 2011, 6:00 am
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+2

Originally Posted by HWGeeks
It's hard to get a copy of the NY Times in Rural areas too
& sometimes no 'country' internet to get on delta.dumb
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Old Jul 19, 2011, 6:07 am
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Originally Posted by mtkeller
Driving a few hours to save money is not a big deal to those in the Upper Midwest.
It is a big deal to those in the Upper Midwest with high incomes. It is the existence of commercial services far closer (than a few hours drive to the airport) that facilitates attracting/retaining such persons in rural areas.
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Old Jul 19, 2011, 6:11 am
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Originally Posted by mtkeller
True, but not all the proposed service cuts are EAS markets, so the federal government isn't involved. With MN politicians distracted by their own mess, they're less likely to be yelling at DL until it's all done.
Why would DL management care about being yelled at by some state office politicians? DL isn't afraid of a "bite" that is just "bark" before and still isn't more than that. DL's been toying with the local pols for years but it has enough of the federal government in its pocket to do as it pleases largely with impunity (as long as DL sucks up to enough federal government elements, as DL has done).
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Old Jul 19, 2011, 6:12 am
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Originally Posted by GUWonder
It is a big deal to those in the Upper Midwest with high incomes. It is the existence of commercial services far closer (than a few hours drive to the airport) that facilitates attracting/retaining such persons in rural areas.
Well, I think you're going to find a solid fraction of people in the region with high incomes who were brought up without high incomes and who want to save as much money as possible. Certainly not all of them, however, and I do agree that these service cuts are not going to be good for business in these smaller communities. The point remains, though, that most people in the area are unwilling to pay the high fares charged to fly out of their "hometown airport", which in turn only drives the fares higher.
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Old Jul 19, 2011, 6:24 am
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Frugality of the wealthy rural leisure traveler aside, this move impacts a lot more than leisure travel. Business travelers could often justify the higher fares because of the time saved, plus the ease of travel. In addition, many of these cities have good amounts of manufacturing and agribusiness, which means not just people traveling FROM these areas to go elsewhere, but many times clients and prospective business partners need to travel TO these rural areas as well. I'm thinking especially about the big push in recent years to set up strong agritrade between MN/the Dakotas and China.
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Old Jul 19, 2011, 6:24 am
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Originally Posted by mtkeller
Well, I think you're going to find a solid fraction of people in the region with high incomes who were brought up without high incomes and who want to save as much money as possible.
"Saving as much money as possible" includes taking into account income opportunities foregone when scheduled travel time to/from destination increases substantially without any economic return. The point is that driving a few hours more than is currently the case is a big deal for such people in such area and to others -- the very people who may well be critical to the economic viability of an area.

Originally Posted by mtkeller
The point remains, though, that most people in the area are unwilling to pay the high fares charged to fly out of their "hometown airport", which in turn only drives the fares higher.
"Most people in the area are unwilling to pay the high fares charged to fly out of their 'hometown airport'" is not a condition limited to markets in NW's more traditional home markets in and bordering around MN.

Nor is it a certain consequence that "most people in the area are unwilling to pay the high fares charged to fly out of their 'hometown airport'" "in turn only drives the fares higher". In other words, there is something lacking when claiming that "most people in the area are unwilling to pay the high fares charged to fly out of their 'hometown airport'" and marrying it with a conclusion that such disposition "only drives the fares higher".

Last edited by GUWonder; Jul 19, 2011 at 6:34 am
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Old Jul 19, 2011, 6:30 am
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Originally Posted by TheMoose
Frugality of the wealthy rural leisure traveler aside, this move impacts a lot more than leisure travel. Business travelers could often justify the higher fares because of the time saved, plus the ease of travel. In addition, many of these cities have good amounts of manufacturing and agribusiness, which means not just people traveling FROM these areas to go elsewhere, but many times clients and prospective business partners need to travel TO these rural areas as well. I'm thinking especially about the big push in recent years to set up strong agritrade between MN/the Dakotas and China.
Oh, forget the impact on trade and other national account balances. DL management doesn't exist to look out for the "national interest". They don't even look out for the SkyMiles customers' interest.
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Old Jul 19, 2011, 7:06 am
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Originally Posted by TheMoose
Frugality of the wealthy rural leisure traveler aside, this move impacts a lot more than leisure travel. Business travelers could often justify the higher fares because of the time saved, plus the ease of travel. In addition, many of these cities have good amounts of manufacturing and agribusiness, which means not just people traveling FROM these areas to go elsewhere, but many times clients and prospective business partners need to travel TO these rural areas as well. I'm thinking especially about the big push in recent years to set up strong agritrade between MN/the Dakotas and China.
The proof of the pudding is in the eating. Were there sufficient business travel demand to these regions then we wouldn't be having this discussion. Those few businesses concerned about flying business partners and prospective clients to the hinterlands of the Midwest will have to find alternate options. According to the reports, DL is even helping that process along.
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Old Jul 19, 2011, 7:06 am
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Originally Posted by TheMoose
Frugality of the wealthy rural leisure traveler aside, this move impacts a lot more than leisure travel. Business travelers could often justify the higher fares because of the time saved, plus the ease of travel. In addition, many of these cities have good amounts of manufacturing and agribusiness, which means not just people traveling FROM these areas to go elsewhere, but many times clients and prospective business partners need to travel TO these rural areas as well. I'm thinking especially about the big push in recent years to set up strong agritrade between MN/the Dakotas and China.
If the number of business travelers is large enough to justify service to these remote areas, there will be service from DL or someone else.

Why should taxpayers give DL $3MM per year to fly to Hibbing? Duluth Airport is what 70 miles away? Not that much of a drive.

Congressman Oberstar was the EAS program's biggest backer, Hibbing was in his district and that is the only reason the area had commercial air service. Oberstar is gone, and hopefully the EAS program will be too.
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Old Jul 19, 2011, 7:27 am
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Oberstar's not even a Member of Congress any longer, and yet the EAS program still exists. If it is to get gutted in full, a lot more things will have to change than Oberstar's (lack of) presence on Capitol Hill.

Originally Posted by FLLDL
Why should taxpayers give DL $3MM per year to fly to Hibbing?
For the same reason that taxpayers pay for DL's access to facilities which cost much more than that $3MM per year and enable DL to fly within and from the US?

Last edited by GUWonder; Jul 19, 2011 at 7:33 am
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