Charlotte-Douglas Airport (CLT) Expansion

[monsoon]

So the USA/United marriage is now dead?

USA also announced today that it is eliminating snacks in coach on all domestic flights.

[ScottCLT]

USA also announced today that it is eliminating snacks in coach on all domestic flights.

I don't really care about this cut -- those pretzels suck and there are only like 8 of them in the bag anyway. If I need a snack, I usually buy a bag of peanuts or something before I get on the plane. The snacks on pretty much all airlines are just a waste for me.

Some airlines have good snacks, though -- AirTran's tasty goldfish snacks or JetBlue's Terra Blue chips -- now that would be a shame if those disappeared.

[Miesian Corners]

I don't really care about this cut -- those pretzels suck and there are only like 8 of them in the bag anyway. If I need a snack, I usually buy a bag of peanuts or something before I get on the plane. The snacks on pretty much all airlines are just a waste for me.

Some airlines have good snacks, though -- AirTran's tasty goldfish snacks or JetBlue's Terra Blue chips -- now that would be a shame if those disappeared.

Give it another couple of months...

Delta is cutting glassware from f/c next month on domestic flights. AA is going to start charging for pillows and blankets. SW is going to raise fares because its fuel hedge is running out.

[monsoon]

Yeah, I have to agree the loss of the pretzels isn't a big deal. It's a long cry from the stuff they used to serve in the late days of Piedmont Airlines when I was flying several times a week.

[voyager12]

I won't mourn the passing of the rubbernuts either. Though this cut is just another illustration of lean times in the industry. For us in steerage class that is....If they could get away with it I am sure the airlines would rip out the seats and chain coach passengers to the walls. And then the crew would stand on the edge of First Class and hose us down with water if we get thirsty. Of course the high life would continue unchanged in the front cabin. Jeez ,I am all into class struggle this AM, any flights to Cuba?

[Raintree21]

AA is going to start charging for pillows and blankets.

Stewardess, it's cold in here, may I please have a blanket?

Sure, sweetie. That will be $10. Would you prefer to pay by cash or credit?

[Shakman]

Update on USA and UAL talks (not quite dead). Airportbusiness.com link:

http://www.airportbusiness.com/online/arti...=1&id=20128

[ScottCLT]

Of course the high life would continue unchanged in the front cabin.

I must say that as a frequent -- usually weekly -- traveller, US does have the best program for frequent fliers as far as upgrades to first class goes. I luckily get bumped to first class on probably 4 out of 5 flights. This is one thing that I would really miss if US and UA merged and the UA rules applied. UA doesn't acknowledge frequent travel on their airline for anything -- you can fly 100,000 miles per year and still be denied a first class upgrade even if seats are available. UA is the worst in customer appreciation in my book because of this -- all other airlines have some sort of free first-class upgrade program for frequent fliers (if the seats are free, of course). With UA, they don't care how often you fly unless the flight is overbooked and first class is the only place they can put you. Is that free mini-bottle of Jack Daniels too frickin' much to ask to keep customer loyalty? The big seats are there anyway -- might as well put your best customers in them to make them feel appreciated. Due to this (and I realize that I am a minority due to the nature of my travel-centric job), I really hope the US/UA merger doesn't happen -- I like the way US works as it is.

[monsoon]

There is an article in the Wall Street Journal today that says the United/USA merger is dead because the CEO of United would rather pursue an alliance deal with Continental Airlines. United has informed USA of this position. We reported the possibility of a Continental merger a few weeks ago here, but the local media seems to have totally missed it and instead all but said United and USA were going to merge.

[kickazzz2000]

There is an article in the Wall Street Journal today that says the United/USA merger is dead because the CEO of United would rather pursue an alliance deal with Continental Airlines. United has informed USA of this position. We reported the possibility of a Continental merger a few weeks ago here, but the local media seems to have totally missed it and instead all but said United and USA were going to merge.

Probably because of the statement released a month ago stating that the Continental-United merger deal was dead.

What United and Continental are pursuing at this time is an alliance, not a merger. Now we have reports of Continental saying it might get out of Skyteam. This is a logical progression from UA and CO's alliance talks. I wonder what it will mean for US when Continental joins the Star Alliance. I don't think there is room for three US carriers in *A.

Things could get interesting from here.

[monsoon]

Reuters is reporting the CEO of United walked away from the deal because they did not want to take the financial risk of merging with USAirways because of the financial decisions made by USA including unfinanced commitments to purchase Airbus planes and expensive labor contracts with USA pilots. Another factor is that United did not see any advantage with merging with USA given that it does not have a strong international presence. United nor USA has the money to deal with it.

So United will go and find other partner, maybe in Continental, but it looks as if the merger with USA is dead. If the reasons given above are actually true, it makes one wonder how USA can survive in its present form. They can't afford to price flights at the true cost it takes to provide them and they can't continue to bleed money like they are.

[Andyc545]

Two new routes have been added by USAirways, both transcontinental to Sacramento and to Tuscon. The Portland season route has began up again.

[CltFlyer]

Two new routes have been added by USAirways, both transcontinental to Sacramento and to Tuscon. The Portland season route has began up again.

I still think Portland needs to be yearound.

[Appetite for Construction]

Does it seem odd to anyone else that US (or any airline for that matter) is adding flights given the financial situation of the airline industry?

[monsoon]

^There was a report on the news that stated that all of the airlines were going to be cutting routes, greatly, over the next few months to keep from going out of business. USAir was mentioned for having cut some flights already over the past week or so.

[HopHead]

^There was a report on the news that stated that all of the airlines were going to be cutting routes, greatly, over the next few months to keep from going out of business. USAir was mentioned for having cut some flights already over the past week or so.

Yea, I saw that too... I think it is rather odd that USA is continuing to move forward with new routes. I'd be surprised if that Tuscon route lasted too long. I believe Charlotte-Montreal is suppose to start soon as well. I'm traveling Charlotte-San Fran every week and every time the flight is over booked (both ways). I can't tell you how miserable coast to coast flights are getting now. And it's only going to get worse.

[atlrvr]

US Airways has essentially de-hubbed Las Vegas, turning it into a focus city....this is where a lot of there domestic cuts have come from, along with the continual abandoning of Pittsburgh. While overall there will be a reduction in domestic capacity, Charlotte will remain stable or possibly even gain some capacity.

[monsoon]

On these lines, United announced yesterday that it is grounding 92 of its aircraft. This will mean elimination of routes to nominal cities and at least the elimination of one international route to Asia. Of course there will be layoffs to go with this reduction.

My guess is that other airlines are to follow, pretty soon.

[rockhilljames]

I read that too. If USAirways follows suit I can kiss my free first class upgrades good bye, as I'll be taking regionals everywhere.

I have noticed that over the last month it's been harder to find non-stop flights.

[Shakman]

On these lines, United announced yesterday that it is grounding 92 of its aircraft. This will mean elimination of routes to nominal cities and at least the elimination of one international route to Asia. Of course there will be layoffs to go with this reduction.

My guess is that other airlines are to follow, pretty soon.

Word in the financial world is saying that UAL will ground its fleet of 737's. layoff 1,000 employess and eliminate 17% of its domestic routes.

AML has already begun there cutbacks which includes the grounding of a large number of its MD-80 series and routes to be cut from Austin, TX. Currently American has a number of flights out of Austin to non-hub destinations (ie Orange County, CA, LGA, Sea-Tac... to name a few).

I wonder my self what USA will do with cut backs. I know that DCA is a profitable center for USA. Before the merger with America West, USA's headquarters was across the highway from DCA. Could USA sell slots to other airlines at DCA or any other airport that is hub of USA???

It will be interesting to see what all of this will equate to for CLT.

Edited June 4, 2008 by Shakman

[HopHead]

Word in the financial world is saying that UAL will ground its fleet of 737's. layoff 1,000 employess and eliminate 17% of its domestic routes.

AML has already begun there cutbacks which includes the grounding of a large number of its MD-80 series and routes to be cut from Austin, TX. Currently American has a number of flights out of Austin to non-hub destinations (ie Orange County, CA, LGA, Sea-Tac... to name a few).

I wonder my self what USA will do with cut backs. I know that DCA is a profitable center for USA. Before the merger with America West, USA's headquarters was across the highway from DCA. Could USA sell slots to other airlines at DCA or any other airport that is hub of USA???

It will be interesting to see what all of this will equate to for CLT.

At some point and time, USA will do just like the other airlines and reduce capacity. We probably won't see it as much at the hubs, other than Vegas, but as a result the smaller airports will suffer most. I saw an article in the USA Today newspaper about the number of cutbacks at airports across the board. The ones that suffer the most are the "low cost alternatives" to the major airports. Good example is Oakland, CA who has long been viewed as a low cost alternative to San Francisco. Oakland is expecting a 20% reduction in the number of flights there by October of this year.

[monsoon]

Someone did an analysis of what it would take to make US Airways profitable. You can read it here. It suggests the same remedy that United took in removing most of its 737 fleet with some other planes. 282 planes to 114.

In Charlotte's case the following routes would be dropped. (not sure how many flights this means)

CLT-based - 38 - (BHM / CLE / DEN / DFW / IAH / LAX / MCI / MEM / MHT / MKE / MSP / PHX / ROC / SAN / SEA / SFO / SJU / STL / STX / SYR)

In addition these would go.

Additional destinations dropped from the network:

AVP / BNA / MEM / MKE / SNA

[kermit]

Someone did an analysis of what it would take to make US Airways profitable. You can read it here. It suggests the same remedy that United took in removing most of its 737 fleet with some other planes. 282 planes to 114.

Its an interesting report although judgeing from its discussion of the Pittsburgh hub and the absence of discussion of its Phoenix operations it seems to be quite dated (pre fuel crunch)

Edit: The references are mostly dated as "accessed April 2004"

Edited June 5, 2008 by kermit

[monsoon]

Ahh yeah, I see that now. I would suspect the calculation might be different now though US Airways still has a fairly sizable fleet of 737s. (a lot of them that came over with Piedmont) And of course it might be more dire given fuel costs are driving a lot of this.

On a related note, Continental announced this morning that it is laying off 3000+ people. No mention on if there will be route cuts to go with it. Update: 11% of it's capacity will be eliminated.

[uptownliving]

US Airways already had plans on their books to get rid of most of their fuel ineffeicient aircraft, namely their 737 fleet. So in that respect they are ahead of the curve compared to other airlines that are just now making plans to get rid of their old airplanes. Those plans might be accelerated with the rising costs of fuel. I beleive they planned to have all the 737s gone by the end of 2009.