doug
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Northwest Memphis Hub

Sat Apr 09, 2005 5:46 am

Could some one elaborate a little on Northwest airlines long term plans for its Memphis hub?Has it been stagnant for the past few years as far as growth or has there been downsizing in the past few years?
 
ejmmsu
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 5:51 am

I fly NW almost exclusively, and I usually connect in MEM. Its really convenient.

There was a long conversation on this topic a while back that can be found here:

http://www.airliners.net/discussions...general_aviation/read.main/1842182
"If the facts do not conform to the theory, they will have to be disposed of"
 
m404
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:08 am

Attention seems to be on IND right now. Most of the new service at MEM has been with NW regionals Mesaba and pinnacle. I believe NW is trying to finesse just the right mix in the cost structure by using regional employees as much as can be allowed under present and hoped for contacts and concessions. Quality and satisfaction with the job done has bitten them now and before when attempting this. You can only get people to do so much with so much. I'm sure they do not want to give up the gates they have without trying every last step. MEM was a marginal success before the economy began it's present slide but the city was never an industrial magnet. It was the lowest O/D of any hub a few years ago and I don't think that's changed. American and UA are both only represented by regional partners having pulled out mainline aircraft. It's not just NW.
Less sarcasm and more thought equal better understanding
 
ejmmsu
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:17 am

Quoting M404 (Reply 2):
American and UA are both only represented by regional partners

I believe AA still has some mainline MD80's mixed in to DFW.
"If the facts do not conform to the theory, they will have to be disposed of"
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:31 am

My opinion: If you want to know what NW thinks of the MEM operation just look at where the bulk of the expansions are for. Seems as if every press release that comes out is for MKE, IND, DTW or MSP. MEM seems to be the step child. In a world of stiff competition there really is no point in maintaining an operation that only serves to double handle passengers (MEM). To survive you need a good mix of O/D and connecting passengers. MEM doesn't provide that. Is it also true that MEM has very high O/D fees? Plus the facility is old. Not exactly something you want to promote.
Indy = Indianapolis and not Independence Air
 
LambertMan
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:35 am

Quoting Indy (Reply 4):
To survive you need a good mix of O/D and connecting passengers.

CVG has proved that theory wrong in every sense of the word.
 
N1120A
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:37 am

Quoting LambertMan (Reply 5):
CVG has proved that theory wrong in every sense of the word.

Yes, and DL is in deep doo doo too. Still, both CVG and MEM have something going for them. They have big, highly centralized companies that need a lot of air service. For CVG, that is Procter and Gamble. For MEM, it is FedEx
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
ejmmsu
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:42 am

Even though CVG is weak on O/D, MEM is even worse. The one thing MEM has going for it is convenience. Its a super easy connection, and you can walk from the most distant NW gates in 10 mins or less. The DTW worldgateway is beautiful, but the connections there can often be hectic.
"If the facts do not conform to the theory, they will have to be disposed of"
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:42 am

Quoting LambertMan (Reply 5):
CVG has proved that theory wrong in every sense of the word.

I disagree completely. Delta is in a world of hurt. If they were a greatly successful airline I'd say maybe you had a valid point. But you can't use a company as an example of success when they are in serious financial trouble. It would be like me trying to justify having hubs close together and using US Airways as an example.
Indy = Indianapolis and not Independence Air
 
LambertMan
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:45 am

Yeah, but where have the cuts came when DL makes them? DFW was cut completely, and SLC was being cut slowly but surely. Only after the DFW cuts were there additions at SLC. CVG is a successful connecting hub for DL, I don't know how that can be disputed.
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:49 am

CVG might make good for connections but so does MEM. But like MEM is having problems so is CVG. DL whacked DFW and that was probably a smart move. But when you are hurting for money the worst thing to do is go out of your way to double handle passengers. The only thing that does is drive your costs up. You need to be in a market where you can tap in to O/D as well. The worst thing for CVG is that they are so close to other airports that people can just as easily go somewhere else instead of paying DL's monopoly prices.
Indy = Indianapolis and not Independence Air
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:54 am

In my opinion DL would be better served by operating in STL than CVG. It is a large airport with a good local market and far enough removed from low fare airports. CVG is just a bad location not because of where it falls on the map but because of where other cities fall on the map. Too much competiton around to try and run a fortress hub.
Indy = Indianapolis and not Independence Air
 
SESGDL
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:55 am

Quoting Indy (Reply 8):
I disagree completely. Delta is in a world of hurt. If they were a greatly successful airline I'd say maybe you had a valid point. But you can't use a company as an example of success when they are in serious financial trouble. It would be like me trying to justify having hubs close together and using US Airways as an example.

DL was the world's most profitable airline in the late 1990s with their second largest hub at CVG like it is now. So a hub with very little O&D works.

In terms of MEM, MEM is a great place to connect if you're connecting in the South and are trying to avoid the hussle and bussle of DFW, IAH, and ATL. MEM will likely continue to grow slowly, most likely with new regional service, but not much more. NW will not leave MEM though, that would be pointless.

Jeremy
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:58 am

Quoting SESGDL (Reply 12):
DL was the world's most profitable airline in the late 1990s with their second largest hub at CVG like it is now. So a hub with very little O&D works.

And that was about the time the CVG hub was getting cranked up. How did DL do in the 90's after the CVG hub was in full operation for a time long enough to feel the effects?
Indy = Indianapolis and not Independence Air
 
tinpusher007
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 6:58 am

LambertMan is correct. To imply that CVG is not successful for DL because they are in a terrible financial situation is not accurate. DL's current financial situation is not due to a lack of success with CVG, but rather. a whole laundry list of other factors which are too many to mention for this topic.

CVG is very successful for DL and has been for quite some time. I would say a city with low O/D numbers that can support daily service to LGW, CDG, AMS, FCO and FRA just off of connections must have something going for it. Also, consider these two facts...number 1, DL dismantled DFW, not CVG. DFW has much higher O/D numbers than CVG. Number 2...CLE has higher O/D numbers and a stronger local market than CVG, yet it has never worked as well for CO as CVG has for DL. CO doesn't even maintain year-round daily service to LGW from CLE. And when it is served, its with a 757 at that.
"Flying isn't inherently dangerous...but very unforgiving of carelessness, incapacity or neglect."
 
MaverickM11
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:00 am

"So a hub with very little O&D works. "

It can work, but MEM, CLT, and CVG don't.
E pur si muove -Galileo
 
SESGDL
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:02 am

Quoting TinPusher007 (Reply 14):
CVG is very successful for DL and has been for quite some time. I would say a city with low O/D numbers that can support daily service to LGW, CDG, AMS, FCO and FRA just off of connections must have something going for it. Also, consider these two facts...number 1, DL dismantled DFW, not CVG. DFW has much higher O/D numbers than CVG. Number 2...CLE has higher O/D numbers and a stronger local market than CVG, yet it has never worked as well for CO as CVG has for DL. CO doesn't even maintain year-round daily service to LGW from CLE. And when it is served, its with a 757 at that.

Exactly! And for your info Indy, DL has their highest number of mainline flights from CVG in late 1997/1998 when DL was making huge profits, so your facts are a bit flawed. There have been a number of hubs that withstood despite low O&D numbers such as CVG, and MEM. To a lessor extent CLT, PIT, and CLE.

Jeremy
 
FlyPNS1
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:03 am

It's hard to tell how successful CVG really is. While DL has kept the hub alive and growing, they have slowly pulled mainline flights out of CVG. CVG is down to barely 150 mainline a day....while there are almost 500 RJ flights. Plus, with more mainline retirements, it looks like CVG will lose even more mainline flights.

Hopefully, Simplifares will help stimulate some of CVG's O+D and improve the hub's performance. But with CVG relying heavily on lower yield connecting traffic, connecting on higher-cost RJ's, it will be tough for DL to ever make big profits at CVG.

The same is true for MEM, but to an even greater degree. MEM exists solely to give NW a southern presence.
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:03 am

I have seen enough news stories about DL and the woes with CVG to know it isn't healthy. They are losing passengers to surrounding airports. Alot of the blame goes to DL for their pricing at CVG. I don't recall if it was 2004 or 2003 but they actually saw a decline in passengers when everyone else was seeing an increase. That however may have been related to O/D instead of total. I don't recall at this moment.

You also can't compare European cities to US cities. The dynamics in Europe are much different than here and that has alot to do with the rail service making it so easy to get from point A to point B. I can fly in to AMS, FRA, CGN, DUS or whereever. It doesn't matter because I am only an hour to 90 minutes away from my final destination by train. That option just doesn't exist here.
Indy = Indianapolis and not Independence Air
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:06 am

Just out of curiosity... can anyone provide any documentation of when DL was making huge profits? Most airlines were only marginally successful in the 90's.
Indy = Indianapolis and not Independence Air
 
SESGDL
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:06 am

Quoting Indy (Reply 18):
I have seen enough news stories about DL and the woes with CVG to know it isn't healthy. They are losing passengers to surrounding airports. Alot of the blame goes to DL for their pricing at CVG. I don't recall if it was 2004 or 2003 but they actually saw a decline in passengers when everyone else was seeing an increase. That however may have been related to O/D instead of total. I don't recall at this moment.

That's crap. CVG lost pax to SDF, and DAY for a while. That's the reason that simplifares were introduced originally at CVG, and since then DAY and SDF have been losing passengers in large numbers. Once again you don't know what you're talking about.

Jeremy
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:08 am

SESGDL.. can you provide any sources?
Indy = Indianapolis and not Independence Air
 
LambertMan
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:17 am

Indy,

CVG did for a while, but with Delta's new simplified fares DAY is the one that is actually losing passengers to CVG (or at least it seems to be).

Of course they will lose a few pax to cheaper fares, but that isn't the point of your whole argument.
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:17 am

" Though traffic at Cincinnati had dropped far less than at Miami over the past four years, Delta officials found that the airport was losing 2,500 passengers a day to nearby airports with a low-fare presence, including Dayton in Ohio, Lexington and Louisville in Kentucky, and even Indianapolis, which is a two-hour trek away.

About 20 percent of passengers from the Cincinnati area make the drive to Indianapolis, the home base of ATA Airways, a low-fare airline that recently announced a deal to share flight designations with Southwest."

http://www.tripsouth.com/MVT/Articles2005/MVT564.html

CVG has seen an increase since simplefares but also keep in mind how much of an increase my be simply because flights that were connecting in DFW have been diverted to other DL hubs. But that article underlines exactly what I was talking about.

In order for DL to succeed in CVG they will have to operate a fortress hub at much lower fares to compete with surrounding markets. The problem then becomes can you stay profitable when you double handle 75% of your passengers if you have to keep your fares low?
Indy = Indianapolis and not Independence Air
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:20 am

LambertMan.... show me an airline that is running a solid hub in a low O/D market. Everyone knows that MEM isn't solid and only around because of its location. As I have just shown CVG isn't solid as well and they are having to fight to keep people coming. They don't have the luxury that other fortress hubs have. They are heavily limited by week O/D numbers and they are also limited by competiton from surrounding cities.
Indy = Indianapolis and not Independence Air
 
LambertMan
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:23 am

Quoting Indy (Reply 23):
In order for DL to succeed in CVG

Indy,

Stop while you are ahead, or well behind I mean. You are beating a dead horse.
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:26 am

Whats the matter? Can't find anything to back up your claim? (note the smile face)

The facts are simple: Competition drives down prices. Double handling drives up costs. The two don't mix.

Prove me wrong.

[Edited 2005-04-09 00:27:37]
Indy = Indianapolis and not Independence Air
 
nycflyer
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:38 am

NW's hubs and focus cities include:

MEM
DTW
MSP
IND
MKE

Does the idea of geographical distribution of hubs mean anything to them? FIVE midwestern hubs/focus cities! That's worse than US (formerly) having two of its three hubs in the same state.

I think it would really behoove NW to build up more of a presence in the west coast or east coast.
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 7:48 am

Does MEM count as Midwestern? There is a big difference between IND/MKE and what US Airways had. IND/MKE are heavily O/D. It doesn't matter how many focus cities you have if they have heavy O/D numbers. If your O/D numbers are 25% to 30% you have a problem.
Indy = Indianapolis and not Independence Air
 
N670UW
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 8:27 am

Indy,

Delta's financial situation is not the direct result of its operating a CVG hub. It's financial situation would be due to a number of factors, among them a high cost structure.

Delta was doing just fine in the late 1990's with its second-largest hub in Cincinnati.

For example:
In 1998, DL reported net income of $1 billion.
Source: 1998 Annual Report http://www.delta.com/pdfs/delta1998.pdf
The annual report also mentions the Cincinnati hub.

In 1999, DL reported a net income of $1.1 billion.
Source: 1999 Annual Report http://www.delta.com/pdfs/delta1999.pdf
The 1999 annual report clearly shows the CVG hub in place in the route map.

Quoting Indy (Reply 11):
In my opinion DL would be better served by operating in STL than CVG.

DL can't just pack up and move to STL. Starting a new hub is terribly expensive, and DL certainly can't afford to do it now. And why would they want to move to STL? Yes it has somewhat better local traffic (but still not to the level of other airports), but it also has a large operation from AA, and most importantly, a large WN presence. Revenues would be weak, especially in markets competing with WN. And is the STL market really large enough to spread itself over three carriers all with large operations? At CVG, DL enjoys a near monopoly on the local market and most importantly, no low-cost carriers.


N670UW

[Edited 2005-04-09 01:29:06]
 
N670UW
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 8:28 am

I'd say MEM is more in the South than anything.



N670UW
 
incitatus
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 8:30 am

MEM is a dog. Move it to MSY I say.
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admluvs2fly
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 8:40 am

This is not a DELTA thread. The man asked about MEM, and if there is anything going on there.

Let's keep the focus on the question.

As far as i know, like some other people said , it looks like you will see more cities that normally you would have had to go to DTW or MSP, be n/s with RJs.

There are some new cities like YYZ and MSN. That's about it for now.
 
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yyz717
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 8:45 am

Overall, MEM has indeed been stagnant for 10-12 years. Has not really grown or shrunken in that time, while all other hubs (NW and others) invariably grow or close.

MEM seems to be a step-child in the NW network. If NW was serious about growing MEM, nonstops to NRT & LGW would happen. It seem that NW has decided that MEM will be a small hub simply to provide a presence in the US South.

MEM is indeed great to hub thru. The small Y-shaped terminal makes connections painless and easy.

I would not be surprised if one day NW greatly reduced MEM service.
I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 8:48 am

N670UW,

Thanks for the links. Now without conducting an audit I would have to say much of the "profit" for 1997 and 1997 had to be purely a paper profit. Much like the massive loss they took last year. Look at the year 1996 and compare it to 1997. You don't have a profit jump of over 500% in one year. If I were an investor and I were looking at financial statements I would be very cautious about investing in a company that had a jump like that in 1 year. I would suspect a fluke or someone to be cooking the books.
Indy = Indianapolis and not Independence Air
 
N670UW
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 9:00 am

Quoting Indy (Reply 34):
N670UW,

Thanks for the links. Now without conducting an audit I would have to say much of the "profit" for 1997 and 1997 had to be purely a paper profit. Much like the massive loss they took last year. Look at the year 1996 and compare it to 1997. You don't have a profit jump of over 500% in one year.

Just curious, where do you see a 500% jump?  Confused

According to this, http://www.delta.com/pdfs/delta1997.pdf, the 1997 Annual Report, DL's 1997 net income was $886 million and its 1996 net income was $662 million, an increase of 34%, not 500%.

1996 - $662 million
1997 - $886 million
1998 - $1.0 billion
1999 - $1.1 billion


N670UW

Edit: sorry for getting off topic

[Edited 2005-04-09 02:00:58]
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 9:14 am

It is under consolidated summary of operations on page 54 (as listed on their page and not pdf page 54)

http://www.delta.com/pdfs/delta1998.pdf

Net Income(Loss) for 1996 is 156

Net Income(Loss) for 1997 is 854
Indy = Indianapolis and not Independence Air
 
m404
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 9:14 am

The MEM conundrum

Memphis is a hub because of where it is
But is just barely a hub - because of where it is.
Less sarcasm and more thought equal better understanding
 
Indy
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 9:17 am

Would MSY be a better option for NW than MEM? I will admit I know nothing about the New Orleans area.
Indy = Indianapolis and not Independence Air
 
aeroman62
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 10:08 am

I've just started flying to Memphis often on business, and love the availability of nonstops to MEM from SFO and LAS, not to mention the short lines at security, the ability to upgrade on NW with my CO Gold status (actually happens four times as often on NW these days as it does on CO, curiously..), the World Club is great, and the airport is a quaint throwback to the 1960's.

Kind of reminds me in many ways of AA's RDU and BNA hubs, loved 'em, but knew it was too good to last. We'll see.
 
MSYtristar
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 10:36 am

NW would not be able to have an operation anywhere near the size of MEM if they moved the hub to MSY. The most consecutive gates they could get in a row down here is around five, and that would require sharing a couple with the likes of B6 and F9. A new terminal would have to be constructed for MSY to see a large hub operation. That being said, if the gate space was there, MSY would be a lot better than MEM in terms of O&D traffic and general appeal.
 
LambertMan
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 10:38 am

Quoting Aeroman62 (Reply 39):
Kind of reminds me in many ways of AA's RDU and BNA hubs, loved 'em, but knew it was too good to last. We'll see.

As some people have said, MEM is only around for its location. There are very few options for other hubs in the Southeast, so there isn't much reason to worry.

The main reason for the dehubbing of BNA/RDU is MIA, and there certainly won't be any opportunities like that coming around anytime soon. So MEM is probably safe for some time to come...
 
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ERJ170
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 10:56 am

Quoting LambertMan (Reply 41):
The main reason for the dehubbing of BNA/RDU is MIA,

Agreed, LambertMan.. but I believe that AA pullout of RDU was one of the best things that could have happened.. since the departure of AA, RDU has done very well for itself. It's a lower fare airport with very good O&D and good service. Most airlines (save FL, AC, DH, HP) offer at the least 3 destinations from RDU and it is a focus city/near focus city for American/ American Eagle, Delta/Delta Connection, US Airways/US Airways Express..

As far as destinations still actually NEEDED from RDU, the list is pretty low..

LAX, SFO, PVD, CMH, DEN, MCI.. that's a very short list...
Aiming High and going far..
 
N1120A
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 11:17 am

Quoting Incitatus (Reply 31):
MEM is a dog. Move it to MSY I say.



Quoting Indy (Reply 38):
Would MSY be a better option for NW than MEM? I will admit I know nothing about the New Orleans area.

Like Steve said, MSY's main problem is terminal design, which is built for O&D. MSY has actually been getting a lot of service upgrades and new/restored destinations, but the the design is just lacking. Actually, if you squeezed the concourses at MSY together and connected them behind security, you would have MEM based on the size.

Quoting ERJ170 (Reply 42):
Quoting LambertMan (Reply 41):
The main reason for the dehubbing of BNA/RDU is MIA,

AA freaked at BNA when WN came in. That is why they dehubbed there. RDU really just does not have any O&D demand except for the biotech stuff, and they do fine with a focus city and hub flights
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss
 
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ERJ170
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 11:26 am

Quoting N1120A (Reply 43):
RDU really just does not have any O&D demand except for the biotech stuff, and they do fine with a focus city and hub flights

So not the case... RDU has very good O&D.. just last year there was 9.5 Million passenger flying through RDU.. I wouldn't say it doesn't have any O&D demand.. And RDU is a lot more than biotech.. but to argue that point would be pointless. think what you like, if that's what you would like to believe.. then save the drama..
Aiming High and going far..
 
ACAfan
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 12:00 pm

Quoting N1120A (Reply 43):
RDU really just does not have any O&D demand except for the biotech stuff, and they do fine with a focus city and hub flights

Thats not fair. O&D at MEM is terrible. Based on O&D, RDU should be the superhub.

Let us look at five major business destinations, and lets see how MEM stacks up to RDU: (daily pax)

MEMPHIS
NYC 611
ATL 784
CHI 330
LAX 239
DFW 243

RALEIGH DURHAM
NYC 1258
ATL 1069
CHI 938
LAX 444
DFW 436

RDU has more than twice the O&D to business markets than MEM to nearly all the above markets. Maybe someone should set up a hub at RDU...






For kicks and giggles, here is my airport:
RICHMOND
NYC 413
ATL 336
CHI 329
LAX 96
DFW 210
Freddie Laker ... May be at peace with his maker ... But he is a persona non grata ... with IATA
 
stlgph
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 2:04 pm

Quoting N1120A (Reply 6):
Yes, and DL is in deep doo doo too

In response to Delta's problems coming from Cincinnati....get a new one.

All these airlines are having problems with operations in cities far larger of an operation than Cincinnati.

United. Chicago. San Francisco. Washington D.C. Denver.

US Airways. Philadelphia.

Continental. Newark.

Northwest. Detroit.


Like I've said before...you can put a hub in Peoria for all it matters, what it boils down to is how you run your company and sell your product.

Quoting Indy (Reply 24):
LambertMan.... show me an airline that is running a solid hub in a low O/D market

A "solid hub?" Please feel free to give definition to a new term. Thanks.

But Cincinnati seems to be a great example of a hub with lots of flights to international, domestic, Canadian destinations, etc.
if assumptions could fly, airliners.net would be the world's busiest airport
 
blackearth
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RE: Northwest Memphis Hub

Sat Apr 09, 2005 2:09 pm

Hi. New poster here. Long-time lurker.

I recall that RDU has higher O/D than CLT, despite having a somewhat smaller population.

A non-hub city having higher O/D than a hub city is not necessarily a valid point to make when comparing the desirability of either city as a hub.

RDU has higher O/D than CLT simply because it's not a fortress hub and has an LCC. Put a NWA hub there with no Southwest and O/D drops dramatically. Take US out of CLT and add Southwest and O/D booms in CLT.

Same could be said of MEM.

There's a reason why Little Rock--which is half the size of MEM--has close to the same O/D to Chicago as MEM: Southwest and no hub.

Fortress hubs depress O/D--fares are high and people drive to another airport--MEM to Little Rock--or not fly at all, taking the train (MEM-Chicago for example) or driving.

Regarding NWA's commitment to MEM, whoever said that MEM serves NWA's niche southern market is imho correct. The South isn't NWA's bread and butter and MEM fits it well. Additionally, flights at MEM have increased from 198 to 222 over the past 18 months. As a "mini-hub", MEM may well be able to retain hub status than the gargantuan hubs of years past.

And MEM has been a hub for some airline or another going back 30 years--Southern to Republic to NWA. Apparently each of those airlines found something profitable in maintaining that status.

Additionally regarding Memphis, it's hardly the poor, shrinking city that's been portrayed here. It's a city that's HQ's for 3 F-500 companies, has above national average income levels, has population growth at or above national averages with a metro pop. of 1,250,000.
 
nycflyer
Posts: 1288
Joined: Fri Jan 14, 2005 1:23 am

RE: Northwest Memphis Hub

Sat Apr 09, 2005 2:37 pm

Blackearth - welcome to a.net! That was an extremely well-written post.
 
LambertMan
Posts: 1696
Joined: Tue Aug 19, 2003 1:26 pm

RE: Northwest Memphis Hub

Sat Apr 09, 2005 2:38 pm

Quoting STLGph (Reply 46):
A "solid hub?" Please feel free to give definition to a new term. Thanks.

STLGph,

Thank you. That was what I was thinking....

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