What can be done to discipline Delta's ATL monopoly and increase competition?
Sep 17, 2019, 10:33 am
#61
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"Atlanta has the highest airfares. Nobody has higher airfares. Believe me."
Sep 17, 2019, 10:36 am
#62
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It seems that the OP is arguing against the entire premise of hub-and-spoke networks...
Sep 17, 2019, 10:38 am
#63
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I think you need to be careful what you wish for.
For all the complaining about DL's fortress hub status, think about the economic impact that DL has in the Atlanta area because they have a fortress hub that results in air traffic that is far and above what the market would support based on O&D traffic alone, or even if it were a smaller hub. DL provides tens of thousands of jobs in the Atlanta region and for every three jobs at Dl there is another job in the community that is created.
For all the complaining about DL's fortress hub status, think about the economic impact that DL has in the Atlanta area because they have a fortress hub that results in air traffic that is far and above what the market would support based on O&D traffic alone, or even if it were a smaller hub. DL provides tens of thousands of jobs in the Atlanta region and for every three jobs at Dl there is another job in the community that is created.
Sep 17, 2019, 10:59 am
#64
Join Date: Apr 2011
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Good point. Also, business travelers in the ATL area have access to far more nonstop service, domestic and international, than they otherwise would have. That can be really important for business travelers (and a nice convenience for leisure travelers). It's a mixed bag when your home airport is a fortress hub.
Consolidation has become a tragedy for upgrade percentages and some international business class FF tickets...things that affect less than 1% of the population of the US and less than 25% of fliers. I mean sure I might have had a little more legroom in the past, but I now have the choice of hundreds of movies that I can watch at my seat, not struggling to see the overhead monitor or worse the one large screen on the bulkhead. And better make sure you remember your paper tickets instead of having an app on my phone that I can even check and change my seat assignment on. Oh also I can fly halfway across the world non-stop instead of having to have tech-stops along the way.
All while adjusted for inflation tickets are the same or lower than they've ever been. The pre-consolidation business model was not sustainable and would have likely lead to the collapse of the us airline industry.
Sep 17, 2019, 11:12 am
#65
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We have something of a sweet spot here near SFO. United has ~40% market share, so that means very good nonstop service, but there is still enough competition to keep prices in check. Now if we could just do something about fog and low clouds.
Sep 17, 2019, 11:18 am
#66
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It seems that the OP is arguing against the entire premise of hub-and-spoke networks...
It's worth considering whether this is something public policy should try to end...
Sep 17, 2019, 11:22 am
#67
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Sep 17, 2019, 11:27 am
#68
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Competition is definitely less, especially in smaller markets. My local airport (DAY) went from 7 carriers preconsolidation to 3 now (4 if you count G4's sometimes service).
Sep 17, 2019, 11:33 am
#69
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Have you seen pre-hub-and-spoke timetables with their limited flight schedule options?
If not, poke around some of the pre-deregulation (1978) timetables here.
Sep 17, 2019, 11:59 am
#70
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Sep 17, 2019, 12:08 pm
#71
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Most business travelers out of SF are going to be loyal to United because it offers nonstop service to the most destinations (110 on UA vs. 30 on AS) and are largely price-insensitive. In addition, a lot of the smaller and regional airports that United serves from SFO couldn't be served profitably with competition.
Sep 17, 2019, 1:03 pm
#72
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No, this is not worth considering. Hub and spoke networks efficiently transport passengers, especially when the number of flights from a given carrier grows (Southwest's network changed from a point-to-point to a hub-and-spoke system as it grew, for example). Your proposal would lead to higher fares and many small regional airports losing commercial flights.
Sep 17, 2019, 1:10 pm
#73
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What’s worse this or subsidies the CEO whines about?
Sep 17, 2019, 1:32 pm
#74
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No, this is not worth considering. Hub and spoke networks efficiently transport passengers, especially when the number of flights from a given carrier grows (Southwest's network changed from a point-to-point to a hub-and-spoke system as it grew, for example). Your proposal would lead to higher fares and many small regional airports losing commercial flights.
Sep 17, 2019, 2:27 pm
#75
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To answer the question in the thread title, I hope that NOTHING can be done to......