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United forced to suspend JFK service due to expiration/lack of slots, end of Oct 2022

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United forced to suspend JFK service due to expiration/lack of slots, end of Oct 2022

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Old Oct 3, 2022, 8:05 am
  #181  
 
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Originally Posted by Lux Flyer
It could be puzzling but we also don't know what their internal discussions with the FAA entailed prior to this. Obviously those discussions would have been going on for sometime (at least I hope United wasn't waiting to start addressing a slot issue 3 months before it was going to rear its head). If what they are saying is true that it's been over a decade since JFK slot situation has been evaluated then I think they have a fair argument the FAA should at least be reevaluating it. If they were getting pushback at the idea of even looking at the situation then a public pressure campaign would be the logical step to put pressure on the FAA to at least consider the issue in a timely manner.
I suppose an airline's view of the free market all depends on their circumstances in any given year. There are free market mechanisms for UA to acquire JFK slots that they chose not to pursue. Those same mechanisms allowed UA to make a lot a money a few years ago by functionally selling their slots to DL.
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Old Oct 3, 2022, 10:52 am
  #182  
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Originally Posted by NYC Flyer
As noted, UA made its bed here and now has to figure out how to sleep in it (or, in this case, stick with the bed in the other room--EWR).

There are certainly things UA can do to mitigate the inability to bring high value customers to JFK, though these will be costly too. A few ideas come to mind that would better position EWR for premium LAX/SFO point of sale passengers:
  • 100% Polaris seating
  • Enhanced meals/onboard service offerings in premium cabins
  • Complimentary limo service on certain fares
  • Complimentary/subsidized Blade helicopter flights into Manhattan for full-fare passengers
  • Frequent flier bonuses/elite matches
  • More focused local marketing in SFO/LAX promoting convenience of EWR to Manhattan
Not all of these would have to be permanent, and obviously they involve money UA would prefer not to invest. But, there are definitely ways to shift demand from JFK to EWR from the two markets in question that could be "sticky" once the promotion/marketing is curtailed (provided UA delivers a good product).
The other notable change .. is that AA will no longer have 3 class aircraft in a few years.. UA could easily codeshare the Blade flights and sell them as a marginal add on . But either way, its going to be a hard sell to corporate travel depts if this is the key to a deal - they've twice abandoned the market.
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Old Oct 3, 2022, 11:05 am
  #183  
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Originally Posted by JimInOhio
,,, There are free market mechanisms for UA to acquire JFK slots that they chose not to pursue. .....
Are you aware they did not pursue?? Did not pursue and were not successful are different situations.
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Old Oct 3, 2022, 11:20 am
  #184  
 
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Originally Posted by JimInOhio
Those same mechanisms allowed UA to make a lot a money a few years ago by functionally selling their slots to DL.
What is a lot? How much money? It didn't think that was disclosed
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Old Oct 3, 2022, 11:22 am
  #185  
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Originally Posted by JimInOhio
.... Those same mechanisms allowed UA to make a lot a money a few years ago by functionally selling their slots to DL.
I believe a key part of that deal was a swap of EWR gates / slots DL --> UA (2015), not direct cash payments.
DOJ seeks to block United/Delta EWR/JFK slot swap deal
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Last edited by WineCountryUA; Oct 3, 2022 at 11:27 am Reason: link
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Old Oct 3, 2022, 11:32 am
  #186  
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Originally Posted by Adelphos
Regardless of the EWR/JFK debate, UA itself badly wants JFK gates, and B6/AA want to strengthen at JFK via their alliance. So airlines see a need to be at JFK. The major airlines in the area (AA, DL, B6) are at all three airports, UA should be too
Just more of the brilliant legacy left by the Smisek management team.
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Old Oct 3, 2022, 11:33 am
  #187  
 
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Originally Posted by HNLbasedFlyer
What is a lot? How much money? It didn't think that was disclosed
From the United States v UA and DL:

"Also on June 16, 2015, United and Delta entered into a separate slot lease agreement pursuant to which United leased to Delta 24 year-round, three summer, and three winter slots at JFK Airport (October to March), also for $14 million (emphasis mine). The lease is long term and automatically renewable, and is intended to effectuate a permanent transfer of the slots to Delta. This slot lease agreement gives Delta control over these JFK slots. That transaction closed in June 2015."

Originally Posted by WineCountryUA
Are you aware they did not pursue?? Did not pursue and were not successful are different situations.
You're right, I don't know. I do think that if UA seriously pursued more slots at JFK, their press releases and other comments on the JFK withdrawal would have some kind of mention of it... but that's just my opinion.

Last edited by WineCountryUA; Oct 3, 2022 at 12:38 pm Reason: merged consecutive posts by same member
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Old Oct 3, 2022, 11:49 am
  #188  
 
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Originally Posted by JimInOhio
From the United States v UA and DL:

"Also on June 16, 2015, United and Delta entered into a separate slot lease agreement pursuant to which United leased to Delta 24 year-round, three summer, and three winter slots at JFK Airport (October to March), also for $14 million (emphasis mine). The lease is long term and automatically renewable, and is intended to effectuate a permanent transfer of the slots to Delta. This slot lease agreement gives Delta control over these JFK slots. That transaction closed in June 2015."
Considering Q2 revenue was $12.1 Billion - $14 million does not sound like a lot.
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Old Oct 3, 2022, 11:53 am
  #189  
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Originally Posted by HNLbasedFlyer
Considering Q2 revenue was $12.1 Billion - $14 million does not sound like a lot.
Roughly $1500 per take-off and landing.
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Old Oct 3, 2022, 12:09 pm
  #190  
 
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Originally Posted by HNLbasedFlyer
Considering Q2 revenue was $12.1 Billion - $14 million does not sound like a lot.
In Q3 2015, United Continental Holdings earned $1.7 billion so, yeah, not a huge chunk of that was from the de facto slot sale.

edit: Oops, wrong quarter. UA earned about $1.2 billion in Q2 2015.

Last edited by JimInOhio; Oct 3, 2022 at 1:29 pm
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Old Oct 3, 2022, 3:26 pm
  #191  
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Originally Posted by PsiFighter37

For some folks, it feels like UA management, no matter who is in charge, can do no right.
well, it's true. they hire incompetent people and get incompetent results. if they would get serious about running a world class airline, they would not paint themselves into these corners.
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Old Oct 3, 2022, 4:17 pm
  #192  
 
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Originally Posted by WineCountryUA
I believe a key part of that deal was a swap of EWR gates / slots DL --> UA (2015), not direct cash payments.
DOJ seeks to block United/Delta EWR/JFK slot swap deal
DL never had to effectuate their end of the ewr slot release because by that time the FAA had dropped the airport from its strict slot control program. UA didn't pursue DL for the additional EWR slots, still leased/sold the DL JFK slots and the DOJ dropped the suit.
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Old Oct 3, 2022, 8:35 pm
  #193  
 
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Confusing management said it was a mistake to pull out last time. Over the past 50 years what cities did UA service from JFK. International routes.
A side note in the early 1970’s fuel crisis briefly UA operated a 747 CLE-MIA inbound aircraft cane from JFK.
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Old Oct 4, 2022, 3:08 am
  #194  
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Originally Posted by buckeyefanflyer
Confusing management said it was a mistake to pull out last time. Over the past 50 years what cities did UA service from JFK. International routes.
I’m aware of LHR and NRT
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Old Oct 4, 2022, 3:27 am
  #195  
 
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Originally Posted by entropy
The other notable change .. is that AA will no longer have 3 class aircraft in a few years.. UA could easily codeshare the Blade flights and sell them as a marginal add on . But either way, its going to be a hard sell to corporate travel depts if this is the key to a deal - they've twice abandoned the market.
I believe AA will be keeping 3 class service, just J-O-Y instead of F-J-Y. We're offering 3 class service on the premium transcons and it seems to be selling very well
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