flyguy89
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CVG Updates II

Tue Jun 18, 2013 7:10 pm

Hey all,

The Enquirer ran an interesting article today which can be found here. The article brought up a couple of interesting facts which I thought were worthy of discussion:

1) CVG is specifically targeting 8 markets for additional service: Boston, Baltimore, New York-LaGuardia, Tampa, Las Vegas, Atlanta, Orlando and Chicago.

2) These markets were chosen based on a recent study of the amount of leakage from CVG to surrounding airports. The following are PDEW (pax daily each way) numbers that were released about how many Cincinnati-area travelers fly from CVG to a specific destination versus those going to a surrounding airport:
-Chicago-Midway: CVG= 0/SDF= 178
-Orlando: CVG= 230/DAY= 75
-Atlanta: CVG= 174/DAY= 57
-Las Vegas: CVG= 166/DAY= 57
-Tampa: CVG= 167/DAY= 55
-New York-LaGuardia: CVG= 237/DAY= 54
-Baltimore: CVG= 98/DAY= 52
-Boston: CVG= 196/DAY= 45

3) Looks like Mike Boyd couldn't resist giving his two cents: “Someone needs to give Cincinnati a real, hard dose of reality,” said airline analyst Michael Boyd, chairman of Boyd Group International, a Colorado-based consulting firm. “Southwest has pretty clearly indicated they’re not coming to Cincinnati. They’re expanding in Dayton. They’re doing OK in Columbus. Their fleet’s not growing” after the AirTran acquisition.

4) Frontier's new CVG-DEN flights are 94% sold out through August.

5) A bit of side news as well that's unrelated to the article is that apparently DL is ending red-eye service to CVG from the West Coast by re-timing departures from the West to depart earlier for the stated reason of better accomodating business travelers.

6) The article quotes CEO Richard Anderson stating last week that Delta feels "really good" about where their service levels are at CVG.

7) Still looks like the planned upgauges to 757's are still in the schedule for CVG-SFO and CVG-SEA so, fingers crossed, it'll be great to see the 757 back at CVG. Hard to believe I used to think it was one of the most boring mainline Delta planes to see at CVG during the mega-hub days!

My thoughts:

1) It's good to see the airport being more targeted in their efforts, having a specific idea of what you want is better than just throwing a bunch of stuff at the wall and seeing what sticks. All would be good destinations for additional service/competition except perhaps Atlanta which DL handily does and always will dominate.

2) Interesting to finally see some hard numbers on the subject. Though it's not completely comprehensive by leaving out CMH and IND, it gives a really good idea of what CVG could stand to gain with additional service to lure back those passengers.

3) I don't think Boyd is wholly incorrect, but I don't buy into his argument. People were saying Southwest wouldn't come to the Cincinnati area before the AirTran merger, yet they decided to keep DAY as a station along with the fact that they also serve CLE and CAK. Last I checked as well, Southwest wasn't "expanding" in DAY either, perhaps he meant full-conversion to a WN station?

4) Great to see Frontier is doing well, hope this bodes well for the future.

5) Curious if the re-timing carries any hidden meaning or if it simply is just a schedule change to better accommodate their most frequent travelers, frequencies aren't being slashed, just the times changed, any one have insights into that?

6) Interesting to hear some positive talk from DL about CVG, but I'm only cautiously optimistic. More cuts are definitely a possibility, but there's one important factor in play with DL and CVG that didn't exist for them in MEM: DL owns and, hub or no-hub, would have to continue to make bond payments on Concourse B until the 2020's I believe. Only time will tell though I guess.
 
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RE: CVG Updates II

Tue Jun 18, 2013 8:01 pm

Quoting flyguy89 (Thread starter):

3) I don't think Boyd is wholly incorrect, but I don't buy into his argument. People were saying Southwest wouldn't come to the Cincinnati area before the AirTran merger, yet they decided to keep DAY as a station along with the fact that they also serve CLE and CAK. Last I checked as well, Southwest wasn't "expanding" in DAY either, perhaps he meant full-conversion to a WN station?

What Boyd is really saying is "CVG should hire me to put together a pretty little PowerPoint to show Southwest". Has he actually ever landed any service for any of these airports that hire him?
 
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mariner
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RE: CVG Updates II

Tue Jun 18, 2013 8:52 pm

Quoting flyguy89 (Thread starter):
1) CVG is specifically targeting 8 markets for additional service: Boston, Baltimore, New York-LaGuardia, Tampa, Las Vegas, Atlanta, Orlando and Chicago.
Quoting flyguy89 (Thread starter):
Frontier's new CVG-DEN flights are 94% sold out through August.

So CVG has just landed it's first LCC in fifteen years and now they're chasing Southwest - which would probably drive out Frontier. Oh, well, them the breaks.  

The Frontier CEO was asked about expansion (before they started service) and he said that while they had no immediate plans, the obvious choice would be TTN or ILG and I think that's fair enough. CVG-TTN would probably avoid any Delta retaliation.

Leave the others - the eight on the list - to the big boys to duke out with Delta.

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RE: CVG Updates II

Tue Jun 18, 2013 9:00 pm

Quoting flyguy89 (Thread starter):
5) A bit of side news as well that's unrelated to the article is that apparently DL is ending red-eye service to CVG from the West Coast by re-timing departures from the West to depart earlier for the stated reason of better accomodating business travelers.

The red-eyes are going to leave the west coast *later* (early am) to arrive later (7-ish) for better conx to east bound cities. It'll pick up some cnx pax and rely less on O&D. CMH has a surprising number of LGA cnx pax from LAX off the red-eye.

Quoting flyguy89 (Thread starter):
4) Great to see Frontier is doing well, hope this bodes well for the future.

Numbers from ground staff are indicating that they're struggling with processing the people with only 2 agents and have had to buy off (ie send to DL) 30-40 pax per day. I don't have hard numbers, but that's coming from friends on the ground here on a daily basis. Could be wishful thinking.
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flyguy89
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RE: CVG Updates II

Tue Jun 18, 2013 9:30 pm

Quoting mariner (Reply 2):

So CVG has just landed it's first LCC in fifteen years and now they're chasing Southwest - which would probably drive out Frontier. Oh, well, them the breaks.

I know, right? But you know how it goes, everyone and their mother wants Southwest to fly to their airport.

Quoting B727FA (Reply 3):
Quoting flyguy89 (Thread starter):
5) A bit of side news as well that's unrelated to the article is that apparently DL is ending red-eye service to CVG from the West Coast by re-timing departures from the West to depart earlier for the stated reason of better accomodating business travelers.

The red-eyes are going to leave the west coast *later* (early am) to arrive later (7-ish) for better conx to east bound cities.

Ah ok, gotcha. Just wasn't sure how to read into that change, if there was anything to read into at all.

Quoting B727FA (Reply 3):
Numbers from ground staff are indicating that they're struggling with processing the people with only 2 agents and have had to buy off (ie send to DL) 30-40 pax per day. I don't have hard numbers, but that's coming from friends on the ground here on a daily basis. Could be wishful thinking.

That's great to hear as, in the past everyone stayed with Delta and the competition's flights would leave half-full, so definitely good that their loads are robust.
 
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RE: CVG Updates II

Wed Jun 19, 2013 1:05 am

You may not like Boyd's 2 cents, he's annoyed me for years, but he is spot on. I laugh everytime I read on of these articles in the Enquirer. Cincinnati people sure like to bitch about the lack of air service, but when they had it, all they did is complain. The airport is right to no longer hang their hat on Delta, but the airport and the area need to realize that CVG is a small market area. However, if they ever get the service they want, the passengers better stay loyal to the new guy instead of flocking back to Delta when the fares get lowered.


P.s. what's with all the ads suddenly on airliners? More annoying than ever.
Over-moderation sucks
 
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RE: CVG Updates II

Wed Jun 19, 2013 1:27 am

Quoting flyguy89 (Thread starter):
New York-LaGuardia

Post-merger, I could definitely see AA ending JFK-CVG and reentering LGA-CVG in its place with 3-4 daily 2-class RJs. This is a prime business market with strong local demand and little competition, and once the merger goes through, AA will have a fair amount of well-timed LGA slots to play with. Plus, after the merger, there will no longer be any reason to fly an ERJ between CVG and JFK in the middle of the day timed for nothing but European connections, all of which will by then easily be served via PHL.
 
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RE: CVG Updates II

Wed Jun 19, 2013 1:40 am

Quoting B727FA (Reply 3):
Numbers from ground staff are indicating that they're struggling with processing the people with only 2 agents and have had to buy off (ie send to DL) 30-40 pax per day. I don't have hard numbers, but that's coming from friends on the ground here on a daily basis

I wonder how this works. First, I'm not sure Delta has 30-40 seats to give F9. These flights (at least on Monday mornings) are packed. Secondly, my flight to CVG last week from DEN (via MSP) was cancelled and the very nice Delta agent said she would love to put me on F9 but they didn't have an agreement with them.

Also, I wished F9 would reconsider the departure time out of CVG to leave a little later.

Quoting flyguy89 (Thread starter):
DL is ending red-eye service to CVG from the West Coast by re-timing departures from the West to depart earlier for the stated reason of better accomodating business travelers.


These flights are retimed to depart the west coast around noon and arrive CVG at 7pm ish. There is one red eye from LAX along with the noon departure.
 
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RE: CVG Updates II

Wed Jun 19, 2013 1:45 am

As a person who doesn't pay for my own travel, I hoping WN doesn't come to CVG. My company would probably force me to fly them (if they were the cheapest option.)

I wouldn't want to give up my upgrade, SkyClub, pre check etc...
 
flyguy89
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RE: CVG Updates II

Wed Jun 19, 2013 2:53 am

Quoting ih8b6 (Reply 5):

Oh I totally agree that it's insufferable the way some of the traveling here think they can have their cake and eat it too, I just disagree with him about WN.

Quoting commavia (Reply 6):
Post-merger, I could definitely see AA ending JFK-CVG and reentering LGA-CVG in its place with 3-4 daily 2-class RJs.

Possibly, I think we'll have to wait and see exactly what their combined strategy will be at JFK, LGA and PHL, but I would definitely hope CVG-NYC would remain at least a three-carrier market to keep pricing decent.

Quoting seatback (Reply 8):
As a person who doesn't pay for my own travel, I hoping WN doesn't come to CVG. My company would probably force me to fly them (if they were the cheapest option.)

I wouldn't want to give up my upgrade, SkyClub, pre check etc...

Well, at least you're honest about it lol, most Cincinnatians with Skymile accounts talk out of both sides of their mouth...they say they want a low-fare carrier, but then never support them when there is one.
 
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RE: CVG Updates II

Wed Jun 19, 2013 7:41 am

Quoting flyguy89 (Thread starter):
4) Great to see Frontier is doing well, hope this bodes well for the future.

Here's the thing about F9 that's different than so-called "LCCs" that served CVG in the past-

F9 is actually financially stable, profitable, and all-around decent airline.


Other airlines that have tried to serve CVG? Well, they dont even exist anymore.
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seatback
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RE: CVG Updates II

Wed Jun 19, 2013 5:22 pm

Quoting seatback (Reply 7):
These flights are retimed to depart the west coast around noon and arrive CVG at 7pm ish. There is one red eye from LAX along with the noon departure.

They've recently changed the Denver departure to Cinciannati to 8:30a.m. which is a bummer. I'd give my right arm for a 5p.m. departure.

At least they're running mainline to DEN now. No CRJ's at least until Christmas (from what I can tell.)
 
kmot
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RE: CVG Updates II

Wed Jun 19, 2013 5:33 pm

In regards to farming 30-40 people a day to DL...

F9 no longer has agreements with DL and UA. Correct me if I am mistaken.

If this were true, their load factors would be less than 80%.

Could this incident coincide with F9 recent change from 30 min check-in cut off to 45 min check-in cut off?

And finally, when I checked in for my flight at 415am, F9 had the only staff at any counter, there were 4 agents, one per computer. When I was checking in, a lady traveling on United, walked down and asked when the United counter would open. The Frontier agent kindly replied, they open an hour prior to departure.
 
flyguy89
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RE: CVG Updates II

Wed Jun 19, 2013 10:02 pm

Quoting PHX787 (Reply 10):
F9 is actually financially stable, profitable, and all-around decent airline.


Other airlines that have tried to serve CVG? Well, they dont even exist anymore.

Well, I don't think you can totally put the blame on the airlines themselves, none of them suspended their CVG services due to their eventual folding, they pulled out before because their flights were leaving half-empty, in other words, as much as people complained about DL and their pricing, they still wouldn't support the competition. But here's to that changing now, hopefully!
 
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RE: CVG Updates II

Thu Jun 20, 2013 9:32 am

Quoting flyguy89 (Reply 13):
Well, I don't think you can totally put the blame on the airlines themselves, none of them suspended their CVG services due to their eventual folding, they pulled out before because their flights were leaving half-empty, in other words, as much as people complained about DL and their pricing, they still wouldn't support the competition. But here's to that changing now, hopefully!

Well again there's a difference- for example, where the heck did Transmeridian fly to? Same with those other smaller airlines? No one wanted to fly them because they had probably the worst possible business model.
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flyguy89
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RE: CVG Updates II

Thu Jun 20, 2013 8:07 pm

Quoting PHX787 (Reply 14):
Well again there's a difference- for example, where the heck did Transmeridian fly to? Same with those other smaller airlines? No one wanted to fly them because they had probably the worst possible business model.

True of Transmeridian, but Vanguard (MDW) and Airtran (Florida) were pretty straight forward and Cincinnati pretty much said "thanks but no thanks".
 
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RE: CVG Updates II

Thu Jun 20, 2013 9:34 pm

Quoting flyguy89 (Reply 15):
True of Transmeridian, but Vanguard (MDW) and Airtran (Florida) were pretty straight forward and Cincinnati pretty much said "thanks but no thanks".

I flew Vanguard from MDW and connected in their MCI hub (man, I hated connecting at MCI with its layout, even before 9/11) a lot back when I lived in Chicagoland, from about 1997 until 2000. I remember flying to DFW, DEN, and LAX on Vanguard from MDW via MCI, all on 732s. And I remember reading their route maps in their in-flight magazine. Based on that, I think Vanguard also flew from CVG to their MCI hub in addition to MDW, and maybe even LGA as well.

And IIRC, TransMeridian flew to SFB, which they also flew to from TOL as well. No surprise that they quit CVG-SFB but kept TOL (with no competition) when DL flew CVG-MCO a gazillion times a day. And after TransMeridian folded, G4 picked up TOL-SFB and still flies it today.
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RE: CVG Updates II

Fri Jun 21, 2013 10:19 pm

What about the possibility of F9 doing 3 to 4 x weekly service to MCO? Will DL then show its teeth?
 
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RE: CVG Updates II

Fri Jun 21, 2013 11:56 pm

Quoting kmot (Reply 17):
What about the possibility of F9 doing 3 to 4 x weekly service to MCO? Will DL then show its teeth?

Before the DEN service started, the Frontier CEO was asked about "other routes" and he said that while they had no immediate plans, the obvious one would be to either TTN or ILG.

I guess MCO might be in their minds, at least - but it (or SFB) is also, apparently, in Allegiant's mind, either at CVG or Lunken.

There is a theory, started in Milwaukee, that Frontier and Delta have an improved relationship now:

http://www.bizjournals.com/milwaukee...of-convention-center.html?page=all

"Was convention center sponsorship part of larger Delta-Frontier deal?"

Maybe. The extension is that Delta will turn a blind eye to Frontier as long as it doesn't tread too hard on Delta's toes. Delta will still compete with Frontier, of course, but nothing like what it did at MCI.

So far it's worked out. Delta hasn't responded to TTN-ATL/DTW, or really to DEN-CVG. You could argue that Delta starting PHL-RDU is a bit of a swing at Frontier's TTN-RDU, but I don't think Frontier is the target of this - if Delta really wanted Frontier to feel pain, it would hit much harder.

But how Delta would react to CVG-MCO is another matter.

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RE: CVG Updates II

Fri Jun 21, 2013 11:59 pm

For my friends who believe Richard regarding Cincinnati, hold onto hope. While Richard is extremely smart and very judicious with his words, he ate all of them with Memphis.
 
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RE: CVG Updates II

Sat Jun 22, 2013 3:39 am

Quoting mariner (Reply 18):
Delta hasn't responded to TTN-ATL/DTW, or really to DEN-CVG.

It isn't in Delta's interest to put Frontier on the mat; Frontier is useful causing trouble for United.
 
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RE: CVG Updates II

Sat Jun 22, 2013 11:31 am

Quoting MasseyBrown (Reply 20):
It isn't in Delta's interest to put Frontier on the mat; Frontier is useful causing trouble for United.

Previously, Delta has gone nuclear whenever Frontier has encroached on its territory, as at MCI.

Northwest did the same.

mariner

[Edited 2013-06-22 04:34:47]
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kmot
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RE: CVG Updates II

Sat Jun 22, 2013 5:57 pm

When is Frontier's next schedule extension. Do you think CVG could see additional flts to DEN? Didn't they have up to 3xDaily service out of DAY some years back? Why they reduce frequency?
 
flyguy89
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RE: CVG Updates II

Sat Jun 22, 2013 6:42 pm

Quoting FWAERJ (Reply 16):
Based on that, I think Vanguard also flew from CVG to their MCI hub in addition to MDW, and maybe even LGA as well.

Hmm, I don't quite recall them ever flying CVG-LGA, MCI possibly, but I do specifically remember their $19 airfares to MDW. And then AirTran also flew to MCO numerous times a week for quite a while, my dad and I flew them once coming back from Disneyworld when they still flew 732's.

Quoting mariner (Reply 18):
Before the DEN service started, the Frontier CEO was asked about "other routes" and he said that while they had no immediate plans, the obvious one would be to either TTN or ILG.

I would welcome either, but I have mixed feelings about how they would perform given that local travelers haven't been that exposed to the LCC concept, let alone the idea of flying into an outer airport and having to drive the rest of the way to your final destination, maybe I'm wrong though.

Quoting n7371f (Reply 19):
For my friends who believe Richard regarding Cincinnati, hold onto hope. While Richard is extremely smart and very judicious with his words, he ate all of them with Memphis.

We know all too well, but for the time being the schedules seem to be holding steady at least with a few welcomed upgauges.

Quoting kmot (Reply 22):
Do you think CVG could see additional flts to DEN?

If the flights do well enough, I could see at least a daily schedule some point soon.
 
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RE: CVG Updates II

Sun Jun 23, 2013 12:34 am

F9 is doing 7 flts a week currently to DEN. The only day with no DEN flts is on Saturday. The 7pm on Sunday is sold out through the rest of the schedule.
 
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RE: CVG Updates II

Sun Jun 23, 2013 12:57 am

Quoting kmot (Reply 22):
Didn't they have up to 3xDaily service out of DAY some years back? Why they reduce frequency?

F9 cut frequency, then got out of DAY, and packed up for CVG, all after WN started DAY-DEN.

Their reasoning for leaving DAY upon announcing the suspension was that DAY-DEN was too small of a market for three carriers (UA also flies the route). And unlike DAY, a small, economically struggling, and shrinking market, the CVG metro is the biggest in Ohio and is doing very well economically.
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RE: CVG Updates II

Sun Jun 23, 2013 1:14 am

Quoting FWAERJ (Reply 25):
Their reasoning for leaving DAY upon announcing the suspension was that DAY-DEN was too small of a market for three carriers (UA also flies the route). And unlike DAY, a small, economically struggling, and shrinking market, the CVG metro is the biggest in Ohio and is doing very well economically.

There were several reasons for it, including the arrival of Southwest on DEN-DAY, but also to consolidate with the CVG Apple flights - CVG-CUN/PUJ are also scheduled Frontier - for a considerable cost saving.

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RE: CVG Updates II

Sun Jun 23, 2013 4:55 am

Quoting MasseyBrown (Reply 20):
It isn't in Delta's interest to put Frontier on the mat; Frontier is useful causing trouble for United.

UA recently began to add a second daily CRJ to DEN in response to F9.......   
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RE: CVG Updates II

Sun Jun 23, 2013 5:25 am

Quoting PHX787 (Reply 27):
UA recently began to add a second daily CRJ to DEN in response to F9.......  

It's high summer and the old story - LCC's can stimulate traffic.

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RE: CVG Updates II

Sun Jun 23, 2013 5:41 am

Quoting mariner (Reply 21):
Previously, Delta has gone nuclear whenever Frontier has encroached on its territory, as at MCI.

Northwest did the same.

mariner

True, but that is very very old news for this industry and how much it has changed. Big picture I would imagine Delta wants Frontier now to survive and hurt United and Southwest at Denver. Delta has an interest in Frontier surviving especially with Frontier looking more and more at o&d instead of connections. Delta has alot more to gain by Frontier surviving now then it would gain in it failing. With CVG specifically i think they just don't care that much to defend the place. If Delta didn't have so much time left on its leases and so many gates just sitting i think they would be already gone. CVG is purely an operation existing to loose as little as possible since they have to pay so much to the airport they should use the gates. I think what they fly each flight makes money so they should keep it up to pay off some of the rent they owe the airport. I cant imagine the current operation makes enough to pay their total tab on all that real estate at CVG.

Maybe Frontier can slide in on MDW, TPA or MCO from CVG? Would be great for airfares.
 
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RE: CVG Updates II

Sun Jun 23, 2013 6:24 am

Quoting slcdeltarumd11 (Reply 29):
True, but that is very very old news for this industry and how much it has changed.

Delta's invasion of MCI in response to Frontier's MCI-MSP was two years ago. I don't think of it as "very very old" news - I see it as part of a consistent pattern. There's a long history to this.

In an interview with the Enquirer the Frontier CEO was at pains to say that the airline was no threat to Delta - that Frontier is not Southwest - and I wondered if he was sending, or reinforcing, a message.

I don't know if Frontier has any interest in CVG-MCO - it doesn't offer CVG-DEN-MCO as a connection but it does offer CVG-DEN-FLL - but either may be a push too far.

I'd be far less concerned about CVG-TTN, and not just because because it is a route that Delta doesn't fly.

mariner

[Edited 2013-06-22 23:40:48]
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kmot
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RE: CVG Updates II

Sun Jun 23, 2013 2:57 pm

When does Frontier issue their next schedule extension?
 
flyguy89
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RE: CVG Updates II

Sun Jun 23, 2013 4:26 pm

Quoting mariner (Reply 26):
Quoting FWAERJ (Reply 25):
Their reasoning for leaving DAY upon announcing the suspension was that DAY-DEN was too small of a market for three carriers (UA also flies the route). And unlike DAY, a small, economically struggling, and shrinking market, the CVG metro is the biggest in Ohio and is doing very well economically.

There were several reasons for it, including the arrival of Southwest on DEN-DAY, but also to consolidate with the CVG Apple flights - CVG-CUN/PUJ are also scheduled Frontier - for a considerable cost saving.

F9 had also stated around the time that something like almost half their bookings in DAY were from Cincinnati-area residents.

Quoting PHX787 (Reply 27):
Quoting MasseyBrown (Reply 20):
It isn't in Delta's interest to put Frontier on the mat; Frontier is useful causing trouble for United.

UA recently began to add a second daily CRJ to DEN in response to F9.......

IIRC UA has always fluctuated between 1-2 daily flights on CVG-DEN. Because CVG is, or until very recently, was staffed by mainline UA employees and operated a daily mainline rotation to ORD, I had always wondered by UA never threw in a mainline flight to DEN.

Quoting slcdeltarumd11 (Reply 29):
CVG is purely an operation existing to loose as little as possible since they have to pay so much to the airport they should use the gates.

Oh I don't know, several people on here have said that DL stated CVG was profitable, but I agree with you that a major factor holding DL back from even more cutting is their ownership of Concourse B.

Quoting slcdeltarumd11 (Reply 29):
I cant imagine the current operation makes enough to pay their total tab on all that real estate at CVG.

I believe the only real estate DL still owns at the airport is Concourse B and their maintenance hangar. I think Concourse C is paid for, Concourse A was taken over by the airport as well as Comair's old HQ building.
 
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RE: CVG Updates II

Sun Jun 23, 2013 6:31 pm

I thought DL still had the lease on Concourse C until 2025.
 
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RE: CVG Updates II

Mon Jun 24, 2013 1:56 am

Quoting flyguy89 (Reply 32):
I believe the only real estate DL still owns at the airport is Concourse B and their maintenance hangar. I think Concourse C is paid for, Concourse A was taken over by the airport as well as Comair's old HQ building.

I think Delta is paying a full lease on C, B and the maintenance areas. Plus they had a long lease on A for along time still i thought they worked something out to severely limit how much money Delta would have owed. IIRC Delta didnt get out scott free it just reduced how much they would have owed and since it had no intention to use the space it made sense. I can't remember on the comair building what the deal was either. Basically Delta is paying CVG alot of money and has alot of gates they would be crazy not to try to make some money. They have to pay CVG alot of money why not use the gates and try to make back some of the lease payments you owe anyway. CVG is kind of lucky to have locked Delta in on such a long and large lease, it will really help the finances there for a while. Even if they cant recruit much new service at least they have large checks still rolling in, it could be much worse.
 
michman
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RE: CVG Updates II

Mon Jun 24, 2013 2:25 pm

Quoting slcdeltarumd11 (Reply 34):
I think Delta is paying a full lease on C, B and the maintenance areas. Plus they had a long lease on A for along time still i thought they worked something out to severely limit how much money Delta would have owed.

Delta and CVG renegotiated the lease on Concourse A so that CVG could move the other airlines to it. I don't believe DL is paying anything on those gates any more. My understanding is that CVG could not force DL to continue to pay the leases while also providing those gates for use to other airlines. DL continues to pay the leases on Concourse B and the shuttered Concourse C. Contrary to another poster, DL does not actually "own" any terminals at CVG.
 
LoneStarMike
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RE: CVG Updates II

Mon Jun 24, 2013 2:59 pm

Quoting michman (Reply 35):
My understanding is that CVG could not force DL to continue to pay the leases while also providing those gates for use to other airlines.

I don't know how it works at CVG, but at other airports where one airline is holding the lease but not using the gate, the airport can force the leaseholder to sublease that gate to another carrier. As an example, the gates Delta uses at DAL are subleased from AA (the actual lease holder on those gates.) I also believe AA is allowed to charge Delta 15% more to sublease the gates from them, than what AA is paying Love Field. This is supposed to cover AA's "administrative costs" of subleasing their gates to Delta.

LoneStarMike
 
lhcvg
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RE: CVG Updates II

Mon Jun 24, 2013 2:59 pm

Quoting michman (Reply 35):

I do seem to recall a deal of some form being made about A along the lines you mention. One interesting tidbit I heard rumor of a few months ago was that somebody like WN might try to get a sweetheart deal to run out of C, provided of course the airport and DL agreed to a similar deal they did on A. I'm not saying this has any particular chance of happening, but when I saw that mentioned I thought it was interesting.
 
kmot
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RE: CVG Updates II

Mon Jun 24, 2013 3:18 pm

There are currently 7-10 unused gates at A, it makes no sense to reopen C, restart bus service (as only one operational bus is left) and get concessions out to that concourse. Not to mention it would need to be revamped as it was designed for CRJ's.

It is my understanding the Gate 1, 2, 3, and 5 have been shuttered from the rest of Concourse A and awaiting renovation. A 19, 20, 21, and 22 are all vacant at the other end (Frontier operates one flt a week out of Gate A22). A22 also seems to be a wide body gate as there are marking for 747 and 767 on that ramp.

Gate A2 may never be brought back as it will house KCAB employees after the Authorities move from Terminal 1.

Finally, a friend mentioned that the airport was close to a deal with an Asian carrier to offer passenger and cargo service. Has anyone else heard anything? Where will this likely go and who will be the likely carrier?

[Edited 2013-06-24 08:32:46]
 
michman
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RE: CVG Updates II

Mon Jun 24, 2013 3:24 pm

Quoting LoneStarMike (Reply 36):
I don't know how it works at CVG, but at other airports where one airline is holding the lease but not using the gate, the airport can force the leaseholder to sublease that gate to another carrier. As an example, the gates Delta uses at DAL are subleased from AA (the actual lease holder on those gates.) I also believe AA is allowed to charge Delta 15% more to sublease the gates from them, than what AA is paying Love Field. This is supposed to cover AA's "administrative costs" of subleasing their gates to Delta.

Here's a news article from 2011 -- http://www.wcpo.com/dpp/news/local_n...elta-releases-strangle-hold-on-cvg
"The Cincinnati Northern Kentucky International Airport will refurbish the now-shuttered Concourse A and move all of the competing airlines from Terminal 2 into the Delta terminal, the airport board decided Monday. Delta essentially built the shiny Terminal 3 at the Cincinnati Northern Kentucky International Airport, and the airline had a lock on all the Concourse A gates until 2015. The Kenton County Airport Board announced Delta agreed to give up control of its unused gates if the airport would assume financial responsibility for the concourse. That includes future lease payments by Delta that in effect funded the construction of the concourse. Once renovations to Concourse A are complete, Air Canada, American, Continental, US Airways, and United Airlines will move from Terminal 2. Continental and United are in the middle of a merger."

Since the airport has "assumed the financial responsibility" for Concourse A, I'd say it's pretty clear there are no complex sub-lease arrangements involved and that DL simply returned the concourse in exchange for getting out of the leases early.

[Edited 2013-06-24 08:25:50]
 
FWAERJ
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RE: CVG Updates II

Mon Jun 24, 2013 3:37 pm

Quoting kmot (Reply 38):
A 19, 20, 21, and 22 are all vacant at the other end (Frontier operates one flt a week out of Gate A22). A22 also seems to be a wide body gate as there are marking for 747 and 767 on that ramp.

Are you sure of that? F9 operates seven DEN flights a week from CVG (1x Monday-Friday and 2x on Sunday) in addition to the Apple Vacations flights.
"Did he really need the triple bypass? Or was it the miles?"
 
kmot
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RE: CVG Updates II

Mon Jun 24, 2013 4:12 pm

Yep... On Saturday night, they have two RON aircraft. One at A8 and one at A22. The A22 aircraft typically does PUJ the following morning. A8 is their primary gate, however it is my understanding that all of F9's gates are leased on a per turn basis.
 
flyguy89
Topic Author
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RE: CVG Updates II

Mon Jun 24, 2013 10:09 pm

Quoting michman (Reply 35):
Contrary to another poster, DL does not actually "own" any terminals at CVG.

Really? Because it was my understanding that DL owns and makes bond payments on Concourse B and just leases the land it sits on from the KCAB, at least according to a few DL employees I know that work there. At the very least I know it's not a typical leasing arrangement, do you have the details? I'd be very interested to know.