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Northwest MEM Hub Profitability?  
User currently offline762er From United States of America, joined Feb 2001, 542 posts, RR: 1
Posted (9 years 2 weeks 6 days 7 hours ago) and read 2450 times:

In particular I was wondering if someone in the know could tell me how interhub routes (MEM-MSP and MEM-DTW) have been performing recently in terms of profitability and load factor? What are some of the other most profitable routes out of MEM on NW? Does the short haul rj and prop stuff operated by Mesaba and Pinnacle do descently? If so what are some of the more and less profitable routes? Can anyone out there provide margins by route? What percentage of the routes would you say have positive margins out of MEM (I can't imagine it'd be that high). As you can see I'd love to gather as much data and info as possible. Just curious. Thanks so much to anyone who can shed some light on this topic.

15 replies: All unread, jump to last
 
User currently offlineDLKAPA From , joined Dec 1969, posts, RR:
Reply 1, posted (9 years 2 weeks 6 days 5 hours ago) and read 2391 times:

I wouldn't use the words "MEM" and "Profitability" within the context of NW  Wink

User currently offlineBobnwa From United States of America, joined Dec 2000, 6538 posts, RR: 9
Reply 2, posted (9 years 2 weeks 5 days 18 hours ago) and read 2280 times:

Quoting DLKAPA (Reply 1):
I wouldn't use the words "MEM" and "Profitability" within the context of NW

Do you have access to info that is not available to the rest of us?


User currently offlineIndy From United States of America, joined Jan 2005, 4596 posts, RR: 18
Reply 3, posted (9 years 2 weeks 5 days 18 hours ago) and read 2267 times:

Quoting Bobnwa (Reply 2):
Do you have access to info that is not available to the rest of us?

Do you? Unless you do and can provide numbers your opinion on this isn't any better than DLKAPA's.

Quoting DLKAPA (Reply 1):
I wouldn't use the words "MEM" and "Profitability" within the context of NW

It may or may not be profitable. There are some things to consider if you want an idea whether it is or not. The money is in O/D. Where does MEM rank when it comes to O/D versus connecting passengers on a flight? That alone won't tell you whether they are making money or losing money. You could have low loads and still make money if you can keep your operating costs down. If you could be profitable with low loads wouldn't you expect to see a stable or growing schedule instead of reductions? If you are making a profit you don't cut back.

Ok maybe the entire operation is losing money and you have to figure out which of the 3 domestic hubs is the weakest link. Look where most of the cuts are coming and you should have an answer. They are going to make the cuts where they are performing the worst not the best.



Indy = Indianapolis and not Independence Air
User currently offlineBobnwa From United States of America, joined Dec 2000, 6538 posts, RR: 9
Reply 4, posted (9 years 2 weeks 5 days 17 hours ago) and read 2255 times:

Quoting Indy (Reply 3):
Do you? Unless you do and can provide numbers your opinion on this isn't any better than DLKAPA's.

I don't have an opinion on it but I would like to form one. Thus I asked for any info DLKAPA might have. I would hope the statement was made with some information to back it up. I would hate to think that a member would just make up things with no basis of fact. I wonder what he knows about the Northwest contract and pension offers to the pilots and mechanics?


User currently offlineDLKAPA From , joined Dec 1969, posts, RR:
Reply 5, posted (9 years 2 weeks 5 days 17 hours ago) and read 2238 times:

Quoting Bobnwa (Reply 2):

Do you have access to info that is not available to the rest of us?

Not insider access but I believe NW's O&D out of MEM is somewhere on the short side of 30%.


User currently offlineBobnwa From United States of America, joined Dec 2000, 6538 posts, RR: 9
Reply 6, posted (9 years 2 weeks 5 days 16 hours ago) and read 2203 times:

Quoting DLKAPA (Reply 5):
Not insider access but I believe NW's O&D out of MEM is somewhere on the short side of 30%.

Not sure what this means. In a hub operation O&D is only a part of the aircraft load. Are you saying that NWA does not carry very good loads on its MEM flights on a daily basis? Where did you get the figure of less than 30% O&D?


User currently offlineLambertMan From United States of America, joined Aug 2003, 2081 posts, RR: 35
Reply 7, posted (9 years 2 weeks 5 days 15 hours ago) and read 2142 times:

Memphis has a great deal of intangible value to an airline with two hubs in the extreme northern portion of the United States. Memphis is a really hard hub to evaluate in the financial sense because how do you compare a benefit that you can't really weigh to the amount of money they are losing from the operation itself? Will be interesting to see what happens.

User currently offlineCIDflyer From United States of America, joined Apr 2005, 2362 posts, RR: 3
Reply 8, posted (9 years 2 weeks 5 days 13 hours ago) and read 2075 times:

for what it's worth, every flight I have been on through MEM over the last eight years has been full or near capacity...that includes flights from MEM to the hubs and vice versa, I can remember taking a fully loaded DC10 from MSP to MEM and vice versa back in '01 and '02 and again, all flights full.

User currently offlineM404 From United States of America, joined Nov 2003, 2231 posts, RR: 5
Reply 9, posted (9 years 2 weeks 5 days 8 hours ago) and read 1993 times:
Support Airliners.net - become a First Class Member!

Take that last post from CIDflyer, add the comment that not all flights are full but close, stir with NWs BK goal of lowering costs, and bingo. It's the same flights, same planes (big?) and add the word "profit"


Less sarcasm and more thought equal better understanding
User currently offlineDLKAPA From , joined Dec 1969, posts, RR:
Reply 10, posted (9 years 2 weeks 5 days 8 hours ago) and read 1972 times:

Quoting Bobnwa (Reply 6):
Not sure what this means. In a hub operation O&D is only a part of the aircraft load. Are you saying that NWA does not carry very good loads on its MEM flights on a daily basis?

No, I'm saying that only 30% of the filled seats out of MEM are O&D. The rest of the seats filled are filled with connecting passengers.


User currently offline762er From United States of America, joined Feb 2001, 542 posts, RR: 1
Reply 11, posted (9 years 2 weeks 5 days 4 hours ago) and read 1896 times:

SO nobody's been able to tell me anything for sure (i.e. educated guess are all we have so far). Are there really no NW insiders out there that can tell me how MEM-MSP/DTW perform? Even just saying if it's profitable or not on a yearly basis. Thanks again.

User currently offlineEjmmsu From United States of America, joined Oct 2004, 1692 posts, RR: 0
Reply 12, posted (9 years 2 weeks 5 days 4 hours ago) and read 1885 times:

I flew GSO-DTW-MEM-TUP today (saturday)

... I flew the 12:01 pm flight to MEM on a DC-9-40, and there were only 2 empty seats. GSO-DTW was about 90% full on a CRJ, and the MEM-TUP had 14 passengers on a Saab340. With large crowds in the airport, MEM was hopping as usual, even on a saturday.



"If the facts do not conform to the theory, they will have to be disposed of"
User currently offline762er From United States of America, joined Feb 2001, 542 posts, RR: 1
Reply 13, posted (9 years 2 weeks 4 days 4 hours ago) and read 1742 times:

ANyone else...sending her back to the top.

User currently offlineTornado82 From , joined Dec 1969, posts, RR:
Reply 14, posted (9 years 2 weeks 4 days 4 hours ago) and read 1727 times:

Quoting DLKAPA (Reply 1):
I wouldn't use the words "MEM" and "Profitability" within the context of NW Wink

I wouldn't use the word Profitability with NW. Whether it's MEM, DTW, or MSP. But that's just me.


User currently offlineTOLtommy From United States of America, joined Dec 2003, 3311 posts, RR: 5
Reply 15, posted (9 years 2 weeks 4 days 4 hours ago) and read 1726 times:

Quoting 762er (Reply 11):
Are there really no NW insiders out there that can tell me how MEM-MSP/DTW perform?

I doubt that there's no worry about those particular markets. If nothing else, they get enough feed traffic to be profitable from MEM. Given the number of daily flights, feed is more important than profit. It's every other route from MEM that's the problem. NWA could close MEM and feel DL at ATL and probably make more money.


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