northernbizzkit1, on Jul 16 2006, 04:46 PM, said:
Northwest is coming out of bankruptcy and it is doing so by recognizing where it can make money and trim costs. If you have a market like Paducah or Laurel, MS where Northwest is basically the only airline operating, it turns out to be lucrative b/c the O&D is actually quite well (not sure specifically about those specific markets, tho) and cutting it would be loss of a definite cash flow. The trimming is taking place on poor flights from the focus cities. MKE has been cut tremendously, and even flights from IND have been cut. Where most of the regional flights are being trimmed are at DTW and MSP because it is rather absurd for them to fly an A320 from DTW to Flint, Michigan. While some regional flights are working, the MEM hub is actually one of the most profitable things for NW, and that is why it is being expanded. The great weather and central location have made it where you don't have irate customers freaking out because of a flight delay due to snow. It's layout and overall operation is the reason as to why NW is expanding here rather than cutting like it is doing at the other hubs.
And yes, I have spoken to an ATA pilot recently as well as an ATA exec from Indianapolis, my friend. If you go through pilots, you'll get a new story every week that is basically thrown around on the ATA message board that is basically the same as the message board at Northwest that constantly ignites the MEM IS SHUTTING DOWN FOR NW rumor. My friend's father works for ATA and has mentioned that the charter service is great (and yes, i can imagine the figures they make); however, it is NOWHERE near the profit level that ATA had while having a commercial service running at the same time.
Nice insight NB. I can appreciate a good conversation. Their charter service (ATA) is flying troops back and forth to Iraq and you know that has got to be GOOD money! LOL!!! I wouldn't do it for pennies on the dollar. I'll tell ya that.
NWA, is in a great position I think. But I haven't heard anything about the Southwest rumors and regional jets. That would undercut their corporate focus which is with the 737's. If they do anything, they will trim flights at certain markets, not reduce the size of their jets. That would most likely be the LAST thing they would do. I know they are taking delivery of 737's on a monthly basis now. I can't see that stopping for fuel cost when the 737's they are getting is some of the most fuel efficient jets flying today. And lets face it. Out of 85 operations a day here at Nashville, over 95% of their flights into and out of here are booked solid. If anything, they may go to larger jets like the 737-800 and 900 in the future for routes. One that comes to mind would be the Nashville to Las Vegas flights. Those sell out quick everytime. They currently fly a 737-700 on that route each day.
I don't see how having hubs in the north is really a concern. NY is a hub, so is Chicago and Toronto. They seems to get by just fine with the snow and all of the winter.
Edited by Lexy, 16 July 2006 - 07:51 PM.

















