Delta plans a $40M New Hub at LaGuardia!!

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CK245
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Delta plans a $40M New Hub at LaGuardia!!

Post by CK245 » 13 Aug 2009, 23:01

It looks like New York City's construction industry will enjoy some of the spoils of the recent flood of airlines swapping takeoff and landing slots at New York and D.C.-area airports.http://www.ny1.com/Content/Top_Stories/ ... fault.aspx

Delta and US Airways announced a deal that will allow Delta to start a domestic hub at LaGuardia Airport by exchanging flying rights and facilities with Regan National Airport in Washington. The agreement, which is still subject to regulatory approval, would require US Airways to transfer 125 operating slot pairs to Delta at LaGuardia. In return, Delta would transfer 42 slot pairs to US Airways at Regan National.

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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by Aaron Robinson » 14 Aug 2009, 00:38

While I am personally disappointed by this move (I once worked at DCA), I think this is a good move for both carriers. US Airways has been reducing it's LaGuardia presence over the last decade, while Delta has been beefing up in New York (Newark cuts excepted). This deal strengthens both airlines in what they've recognized as their more important markets. Now if only Delta would make good use of that nice new terminal in Massachusetts...

I think the more interesting parts of this deal are that:
-US Airways is launching service from DCA to several Delta/Northwest markets that seemed inpenetrable (Cincinnati, Des Moines, Grand Rapids, Madison).
-Delta is giving up rights in Sao Paulo and Tokyo, two markets that have seen major expansion the last few years.
-US Airways is content to split its operations between two terminals.
-US Airways had already figured out what to do with its additional service (some of these had been served in the past), while Delta hasn't (despite having many other LaGuardia destinations in the past).

Will we see more of this behavior? Maybe. Swapping assets like this hasn't happened in twenty years, but there are still additional markets that are quite fragmented--Boston, Los Angeles, New York still. Breaking the status quo is not easy though.
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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by Dennis » 14 Aug 2009, 01:20

Looks more like a Monkey see, Monkey do thing. Continental swaps with AirTran and then Delta swaps with US. What's next? UA swapping with AA, B6 with WN...looks like Delta wants to corner CO into a position where they'll go bust or be absorbed by another carrier. I smell another merger in the making. As if DL wasn't big enough at JFK, now they're expanding at LGA, that's 2 NYC airports.
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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by frogdude4993 » 14 Aug 2009, 01:30

1. I think it's ironic that the cost of constructing a nice new facility for use of the hub of the largest airline in the world will about match the cost of the smallest aircraft in their fleet.

2. I think it's sad to see them losing spots internationally, especially Tokyo.

3. Can anyone see them giving up other US domestic hubs such as SLC or CVG? Or is this mega airline going to fill the capacity of six domestic hubs? Not to mention ATL and DTW, some of the largest/busiest airports in America.
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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by Northwestdc9 » 19 Aug 2009, 20:19

The Tokyo slots were not in use if I understand the deal correctly, so really they're selling something that they're not using. Free money.

This is FANTASTIC for Delta in New York, they desperately needed more space and nicer facilities in La Guardia, especially if they re-do the US Airways Terminal.
Personally disappointing because I liked Delta/Northwest's service levels to National but it's a great deal for Delta.

Delta won't give up Salt Lake City, it, along with Minneapolis/St. Paul are their Western hubs and are essential to their network. Cincinnati, many would argue, is already on the way out. I definitely believe CVG's days are numbered.
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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by frogdude4993 » 19 Aug 2009, 21:04

Northwestdc9 wrote:Cincinnati, many would argue, is already on the way out. I definitely believe CVG's days are numbered.
What about ComAir's influence. They still together with Delta and if Delta pulls out what will ComAir do?
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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by Northwestdc9 » 19 Aug 2009, 22:29

Comair is already in trouble, they have countless CRJ-200s parked across the country and especially on the ramps in Cincinnati.
As a wholly owned subsidiary, Comair is rather protected but I would not be at ALL surprised to see them merged into one of the other regionals or sold off piece by piece.

The LAST thing Delta needs is more CRJ-100/200s.
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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by seahawks7757 » 20 Aug 2009, 07:34

I would say that I have to disagree on the CVG. In the last few weeks since they launched a flight there from SEA I have seen a huge increase on connecting passengers checked bags to there.
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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by frogdude4993 » 21 Aug 2009, 02:30

seahawks7757 wrote:I would say that I have to disagree on the CVG. In the last few weeks since they launched a flight there from SEA I have seen a huge increase on connecting passengers checked bags to there.
That could just be a seasonal rush. Wouldn't there need to be a steady rise over a long period of time in order to count?
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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by Aaron Robinson » 21 Aug 2009, 03:00

frogdude4993 wrote:
seahawks7757 wrote:I would say that I have to disagree on the CVG. In the last few weeks since they launched a flight there from SEA I have seen a huge increase on connecting passengers checked bags to there.
That could just be a seasonal rush. Wouldn't there need to be a steady rise over a long period of time in order to count?
Correct. Airlines generally increase service to the Pacific Northwest in summer.
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Re: Delta plans a $40M New Hub at LaGuardia!!

Post by Northwestdc9 » 21 Aug 2009, 06:03

Yes, likely a seasonal increase only.

On the whole, net capacity and operations are down in Cincinnati especially with the coming cuts in the fall schedule.
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