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Memphis International Airport

northernbizzkit1

By northernbizzkit1
in Memphis

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Bears Hamlet

Bears

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Here's something to ponder. The conventional wisdom has always been that LCC growth at MEM puts the NW hub in jeopardy (more competition, NW forced to cut fares to maintain marketshare, hub less profitable). It has been suggested that the airport authority has been "dragging its feet" in getting SWA to come in here for fear that it will send NW packing.

However, NW share of the O&D market is reported to be relatively low for a fortress hub. Given this fact and the small size of the Memphis market to begin with, the case can be made that NW retains the MEM hub largely for factors other than O&D traffic - geography, weather, good partnership with the airport, uncongested, low operating costs, too expensive to move elsewhere and no suitable alternatives without taking on even greater competition.

So...if a disproportionately large share of NW traffic at MEM is connecting, is it possible (somewhat ironically) that NW's weak O&D share might actually make it less sensitive to LCC penetration?

Very good point. Don't forget the airport infastructure that is in place for Fedex as well. How any airports have a runway that can handle a plane like the A380? You will definetly see O&D traffic in Memphis increase if LCC's come in. There are so many potential tourists that want to come to Memphis but are hampered by the cost of the plane ticket. Airtran was one option but they're aren't enough flights and are too ATL centric. What I mean by Atlanta centric is if you want to fly from Memphis to San Diego, you'll have to go east to Atlanta first, then go westwards towards San Diego. Its a waste of time.

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Lexy Town

Lexy

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Very good point. Don't forget the airport infastructure that is in place for Fedex as well. How any airports have a runway that can handle a plane like the A380? You will definetly see O&D traffic in Memphis increase if LCC's come in. There are so many potential tourists that want to come to Memphis but are hampered by the cost of the plane ticket. Airtran was one option but they're aren't enough flights and are too ATL centric. What I mean by Atlanta centric is if you want to fly from Memphis to San Diego, you'll have to go east to Atlanta first, then go westwards towards San Diego. Its a waste of time.

Most major airports in the US from Memphis to Nashville, and Austin to San Fransisco have runways that can handle an A380. They have to due to the fact that they have the fire, police, and rescue capabilities to handle an emergency landing if one should need to happen. That is the FAA's mandate.

But I agree, more LCC's @ MEM means more O&D there. But the fact remains, if people want to go to Memphis, then they will go there one way or the other. Regardless of a plane ticket. The only way for your statement to make total sense would be if you are talking about folks who live over 15 hours away from Memphis, who really have no choice BUT to fly to there if they want to go.

As for the Airtran statement, you are dead on man. I agree 100%. Flying from MEm to ATL just to go to San Diego is a waste of time and money. Good points though.

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northernbizzkit1 Hamlet

northernbizzkit1

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Most major airports in the US from Memphis to Nashville, and Austin to San Fransisco have runways that can handle an A380. They have to due to the fact that they have the fire, police, and rescue capabilities to handle an emergency landing if one should need to happen. That is the FAA's mandate.

But I agree, more LCC's @ MEM means more O&D there. But the fact remains, if people want to go to Memphis, then they will go there one way or the other. Regardless of a plane ticket. The only way for your statement to make total sense would be if you are talking about folks who live over 15 hours away from Memphis, who really have no choice BUT to fly to there if they want to go.

As for the Airtran statement, you are dead on man. I agree 100%. Flying from MEm to ATL just to go to San Diego is a waste of time and money. Good points though.

I'm really not trying to disagree with everything you say, but the high cost of airlines here does figure into the low MEM O&D...people will find a way to get here if they really have to be...it just won't be on a plane. I don't know if that was what you were getting at or not, but I think Frontier will help with the O&D.

Bears, with the A380, any airport with a runway that can handle a 747 can handle an A380...it's just that Memphis is one of the few airports with a taxiway and hangar that can handle the A380. The taxiway/jetway/gate issue is what makes it where only a select few airports in the world can handle the jumbo...not runways.

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Lexy Town

Lexy

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NB, I don't think what you're doing is disagreeing with me, but rather insisting that everyone is driving to Little Rock and Nashville to fly (which is false for the most part). To each his own I suppose, but I have seen the numbers from last year and most of the traffic @ BNA originates there and leaves from there, etc. There is some, but it is very little that come from the Memphis area. Now, yes NW has high prices, but again if people want to come to Memphis they will regardless of how they get there. You are right about the high cost of NW keeping the O&D down, but I don't think that O&D would be terribly high if NW wasn't there. Perhaps that's just my guesstament (and I may be off totally on it).

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northernbizzkit1 Hamlet

northernbizzkit1

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It's interesting that in the TDOT Aviation System report, it cites a MEM-CDG flight as a possibility to supplement or replace the MEM-AMS flight. I would think supplement before replace since AMS is too lucrative right now from MEM.

Edit: I've read more, and it is really interesting to see how they project future growth for MEM. By 2010, terminal A should be lengthened to the north, terminal C should have an expanded ticketing facility (Frontier should like that haha), B should be extended to the south, and B should be widened. By 2020, terminal C should be extended to the north (eliminating the cargo facilities currently there), and by 2030, there should be a new terminal to the south (the X-shaped facility often mentioned here?). It's interesting that a 2005 plan by the State brings back the idea of the new South field terminal alongside numerous expansions.

Plan

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northernbizzkit1 Hamlet

northernbizzkit1

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Thats a pretty cool plan. They had quite a large one for the Knoxville airport by 2030. It included a whole new runway and a good sized terminal.

Yup...the Tennessee airports should be pretty nice by 2030.

Interesting note: Frontier already has flights booked by 50% for the month of May...and there are still two months to go before they start service! Frontier appears to be popular even though they haven't really started a marketing campaign in the memphis area.

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Clobber Burg

Clobber

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Commentary: It is starting to rise and change the "skyline" (such as it is) of the airport area -- it's 8 stories tall, and it will be built to deflect terroristic intents, as the articles explain. It also frees up space for FedEx for staging (although I wonder if it's possible to expand the sorting facility, and where).

So, for your consideration, articles appearing recently in the CA regarding the new TANG facility:

Guard's future rises

http://www.commercialappeal.com/mca/busine...5456181,00.html

Land swap puts FedEx in prime spot for growth:

http://www.commercialappeal.com/mca/busine...5456180,00.html

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Bears Hamlet

Bears

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A third skyline at the airport with THREE 8 story airplane condos (a.k.a hangars) :lol: Come to think of it, there are a few low rises near I-240 so a third concentration of tall buildings is possible in the Aerotropolis.

Redevelopment in this area could help the Downtown-Airport line get built much quicker. Certainly, the area around the new intermodal transport terminal by the airport will have some entertainment/hotels for people passing through town. Much better than the airport area we have now. I know one guy who visited Memphis and booked a hotel in Airport area thinking it would be a classy business type place but was greatly dissappointed. This is definetly not the first impression we want to give out.

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Clobber Burg

Clobber

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Memphis will have one heck of an airport when all these projects get done. :thumbsup: Does anybody know what FedEx is going to put on the 103 acres their receiving?

I think it was said that it's extra staging/parking for airplanes . . . If you're talking about the inheritance from TANG.

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James Owen Whistle-Stop

James Owen

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Speaking of which, has anybody heard of plans to build a consolidated car rental facility along Airways Rd across from the airport? I'm not sure where I read the information from, but it was reported about a month ago.

EDIT: This isn't the exact article, but at least it gives details about what I'm talking about.

http://www.fleet-central.com/arn/t_inside....p;storyID=27957

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Clobber Burg

Clobber

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Speaking of which, has anybody heard of plans to build a consolidated car rental facility along Airways Rd across from the airport? I'm not sure where I read the information from, but it was reported about a month ago.

EDIT: This isn't the exact article, but at least it gives details about what I'm talking about.

http://www.fleet-central.com/arn/t_inside....p;storyID=27957

I saw something like that, it's supposed to be closer to the airport than where it currently is now, but I don't remember if it's on Airways or what; maybe it'll be around where Airways hits Winchester? Although I'd like to see it much closer to the terminals.

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Clobber Burg

Clobber

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Here's the info: http://www.commercialappeal.com/mca/busine...5420693,00.html

$48 mill.

78 acres.

Where Winchester meets Airways.

Old lots become FedEx parking.

Will those lots be owned by FedEx or just used by them? And I wonder at what point will they lower Democrat and expand FedEx over it so it's continuous to those lots, if ever?

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Fellowmann20 Whistle-Stop

Fellowmann20

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Its pretty nice, but there goes the 4th parallel runway idea out the window. <_<

In hopes that my last comment was wrong, does anybody know if the airport owns any land on the east side of Swinnea Rd? :dontknow: The reason I'm bringing this up is because I was looking at a 2006 Rand McNally atlas, and it shows that the airport owns a large chunk of land across Swinnea that could easily fit 1 or 2 runways. I know there is a neighborhood and some industrial buildings there, so I thought that until the airport needs the land they will let those people and businesses stay there. If they do own the land, KMEM has plenty of room to expand.

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