United Airlines president slams Frontier after $39 ticket announcement and vows
Jul 20, 2017, 3:21 am
#1
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United Airlines president slams Frontier after $39 ticket announcement and vows
Seems lower fares in short term for Denver? UA basic fares seems to be working (see news link)
http://www.msn.com/en-us/money/compa...Dt7?li=BBnbfcL
http://www.msn.com/en-us/money/compa...Dt7?li=BBnbfcL
Jul 20, 2017, 4:59 am
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And that's what triggered Kirby's strong reply. Denver might be home base for Frontier, but it's also United's most profitable hub.
Pretty sure I have seen EWR listed as such recently?
Jul 20, 2017, 6:10 am
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Jul 20, 2017, 6:28 am
#5
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Listen to the audio transcript of the earnings call. Kirby was all sorts of revved up on this one. Like he was excited for the opportunity to crush Frontier. I was surprised by it in real-time
(as were other analysts/reporters listening to the call) and several stories written connote that feeling. This was far different from his energy over various other topics during the call or really since he's joined UA IMO.
Audio clip (I extracted this from the full call recording UA published on its site)
My take on Kirby's excitement over Frontier at Denver
(as were other analysts/reporters listening to the call) and several stories written connote that feeling. This was far different from his energy over various other topics during the call or really since he's joined UA IMO.
Audio clip (I extracted this from the full call recording UA published on its site)
My take on Kirby's excitement over Frontier at Denver
Last edited by sbm12; Jul 20, 2017 at 10:11 am
Jul 20, 2017, 9:44 am
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Jul 20, 2017, 10:03 am
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The strength of the local DEN market, the greater domestic market in general, the orientation of DEN as a domestic connecting hub (with significant volume) and the somewhat recent renegotiation of UA's lease make the proclamation about DEN being United's most profitable hub reasonable, to me.
Jul 20, 2017, 10:14 am
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r flights within 500 and 750 miles". I see UA having a list like this:- Denver - United's most profitable hub*
- *Of our hubs located above 5000 feet
- Chicago - United's most profitable hub *
- *Of our hubs with overcrowded business class only lounges.
- Newark - United's most profitable hub *
- *Of hubs within 100 miles of New York City
And of course we can't leave out Cleveland:
- Cleveland - United's most profitable hub *
- *Of our hubs that were dehubbed
Jul 20, 2017, 10:18 am
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Yes this seems to be a label they slap on as their purposes dictate . . . if they're cutting service, the hub is not profitable; if they're expanding, it's wildly profitable.
Jul 20, 2017, 10:32 am
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David
Jul 20, 2017, 11:02 am
#11
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"Most" profitable? I don't doubt that CLE may have been called profitable, but I'd be surprised by "most profitable"... happy to be proven wrong, though!
The strength of the local DEN market, the greater domestic market in general, the orientation of DEN as a domestic connecting hub (with significant volume) and the somewhat recent renegotiation of UA's lease make the proclamation about DEN being United's most profitable hub reasonable, to me.
The strength of the local DEN market, the greater domestic market in general, the orientation of DEN as a domestic connecting hub (with significant volume) and the somewhat recent renegotiation of UA's lease make the proclamation about DEN being United's most profitable hub reasonable, to me.
Context is key and without it nothing really means anything.
Jul 20, 2017, 11:37 am
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How do you calculate profit for one airport when all the airports operate together in a network? If it's $profit/passenger or $profit/RSM, or $profit/ASM, then all you have to do is look up the passenger count, revenue seat miles, or available seat miles out of every hub and then pick the highest one. I don't see that as particularly valuable. O&D profit, maybe, but the connecting passengers can't be ignored. Without them the airline ceases operations. Even Southwest has had connecting passengers for decades.
Jul 20, 2017, 1:10 pm
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How do you calculate profit for one airport when all the airports operate together in a network? If it's $profit/passenger or $profit/RSM, or $profit/ASM, then all you have to do is look up the passenger count, revenue seat miles, or available seat miles out of every hub and then pick the highest one. I don't see that as particularly valuable. O&D profit, maybe, but the connecting passengers can't be ignored. Without them the airline ceases operations. Even Southwest has had connecting passengers for decades.
Jul 20, 2017, 1:43 pm
#14
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I'm hoping it means some real bargain fares on United out of DEN. I'm hoping they don't just increase the difference between BE and Economy, because I'm not interested in BE.
Jul 20, 2017, 2:10 pm
#15
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Heh...apparently Kirby's rant worked. Bloomberg is now reporting that the pending Frontier IPO is being delayed. 
https://www.bloomberg.com/news/artic...east-september
https://www.bloomberg.com/news/artic...east-september