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United Could Move ‘the Bulk’ of its Operations from Newark if Jet Fuel Tax Increases

United Could Move ‘the Bulk’ of its Operations from Newark if Jet Fuel Tax Increases

Old Sep 16, 18, 3:46 pm
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United Could Move ‘the Bulk’ of its Operations from Newark if Jet Fuel Tax Increases

New Jersey is seemingly targetting United with a four cent per gallon tax on all jet fuel purchased in the state - but one that is only applicable to a carrier with passenger traffic of 8 million people or more p.a.

As a result, the UA exec for the region said the airline might consider moving "the bulk" of its operations to other hubs.

Didn't something similar just happen in Georgia with Delta?

United Could Move ‘the Bulk’ of its Operations from Newark Liberty if Proposed Increase in Jet Fuel Tax Becomes Law

United Airlines said it would consider moving some operations from its hub at Newark Liberty International Airport in New Jersey to other hubs if lawmakers there enact legislation that would effectively raise jet-fuel taxes that the airline pays.

The bill, which has already been approved in committee, would require all airlines carrying over eight million passengers per year to pay a four cent tax per gallon on all jet fuel purchased …
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Old Sep 16, 18, 3:59 pm
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Where are they going to go? Dulles, my home airport, is already crowded with UA flights. UA is so dominant at EWR that there is no room for them elsewhere.
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Old Sep 16, 18, 4:16 pm
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UA may threaten and propagandize but they’ll never leave EWR over a $20 million tax.
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Old Sep 16, 18, 4:16 pm
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Rumor (unconfirmed) has it that delAAyed is trying to sell of gates in PHL
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Old Sep 16, 18, 4:18 pm
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Aside from the merits of the proposed tax itself...where is UA going to move? UA definitely holds the weaker hand here, IMO...they need EWR. They have zero leverage in this situation.
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Old Sep 16, 18, 4:19 pm
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Originally Posted by euslaner View Post
Where are they going to go? .
I'm sure CLE would welcome them back.
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Old Sep 16, 18, 4:52 pm
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Originally Posted by euslaner View Post
Where are they going to go?
Bulk up at LGA and JFK!

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Old Sep 16, 18, 4:58 pm
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I suppose we have seen top management (Mr. Double-the-Airfare in particular) make noises about JFK recently, so perhaps they are thinking more seriously about it than they've let on. Perhaps not. It'd be hard to imagine them moving after the PL investment, but perhaps someone more familiar with jet fuel usage can enlighten me on how that balances.
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Old Sep 16, 18, 4:59 pm
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Originally Posted by DELee View Post
Bulk up at LGA and JFK ...
At Level 3 slot limited airports?
And LGA with a perimeter rule limitation?
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Old Sep 16, 18, 5:39 pm
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Is this something I can now bet money on (against) in New Jersey casinos?
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Old Sep 16, 18, 5:47 pm
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UA has ~100 gates at EWR? EWR is located in world’s ~#1 metro (GDP) with lots of O/D. This can’t be matched by shifting 10-20 gates each to BOS, JFK, LGA, PHL, BWI, DCA, IAD and foregoing a fortress hub that has strong pricing power. CLE couldn’t possibly match the volume nor revenue. Pure bluff!
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Old Sep 16, 18, 5:53 pm
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Originally Posted by AirbusFan2B View Post
UA has ~100 gates at EWR? EWR is located in world’s ~#1 metro (GDP) with lots of O/D. This can’t be matched by shifting 10-20 gates each to BOS, JFK, LGA, PHL, BWI, DCA, IAD and foregoing a fortress hub that has strong pricing power. CLE couldn’t possibly match the volume nor revenue. Pure bluff!
that's what the law makers are thinking... proposal targets airlines >8 million passengers in NJ. everyone but united has <2 million
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Old Sep 16, 18, 5:57 pm
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Well, if we can imagine entire new mega terminals, then IAD (which needs rebuilding in the worst way), here we come! That’s where I would put my money. That would also jibe with TPG interview. That would be a massive hub!
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Old Sep 16, 18, 6:14 pm
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Remember - *A network at EWR include all the feeder flights via its partners. I'm sure they wish Chris Christie was at the helm but, they really have no choices/options.
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Old Sep 16, 18, 6:42 pm
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not.a.chance.
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