Delta Pulls Out Of Dfw Hub

[editor]

I'm listening to BBC World Service, and they just announced that Delta is cutting up to 7,000 jobs. They're also dumping their Dallas hub. Ouch. I know cities often fight each other to get airline hubs, so will his hurt Dallas, or since American is in Fort Worth will it have no effect?

[The Great Hizzy!]

Any time you cut 7,000 jobs AND close a major hub it's going to be bad news for that major hub, as there will be a significant number of jobs from that hub that will more than likely be included in those cuts. Even if it's only 5-10% of the 7,000 jobs, it's still 350 - 700 jobs.

Now if AA decides to take over a portion of Delta's hub or, more importantly, take on a large number of those former Delta employees at DFW, then the impact is lessened.

[Subdude]

Being a hub can have both pros and cons. From the viewpoint of the consumer, it is best to have competition in an airport. That's why DFW was lucky to have two hub airlines. If an airport is a hub for one airline, though, that airline can dominate pricing out of the airport - ie higher prices. I work out of town a lot, and I've often noticed how ticket prices tend to be a lot higher on Continental out of IAH. They get away with it because they have such a domination of traffic at the airport.

That is the reason why cities that lose hub status usually end up with lower ticket prices overall. Once the hub airline no longer controls so many gates, other airlines rush in on a more competitive basis. Of course, the downside of losing hub status is loss of jobs and flight flexibiltiy. Overall, it's a bad break for DFW, both because of the loss of jobs and the reduction down to one hub carrier which will increase ticket prices. It really gets down to issues of economics, which cities sometimes overlook when they think of airline hubs in terms of civic pride.

[saxman66]

It's bad for the airport. DFW likes having two airlines use it as a hub. Yet AirTran seems to be adding many flights there. Air Tran is now DFW's third largest carrier behind Delta. Yet Delta cannot pull out of DFW all together due to the huge amount of Delta Connection carriers there; ASA, Comair, Skywest. I bet many of the Delta mainline route will be picked up by Delta Connection. I assume mainline will continue to ATL, CVG, SLC, and maybe another like LAX. I don't think a huge difference will be noticed. Just a few more RJ's

[KinkaidAlum]

You are underestimating how much the pull out will hurt DFW. This isn't just Delta pulling out mainline service, but also Comair, Atlantic Southeast, and any other regional carriers that fly under DL's colors!

This spring, Dallas will have 21 Delta flights. The ONLY service will be to Delta's other hubs in Atlanta, Cincinnati, and Salt Lake City.

This also affects IAH and HOU since both had numerous daily nonstops to DFW on regional jets. IAH will see an increase in frequency of two daily flights to Salt Lake City but overall will see a slight reduction in seats. At Hobby, things are much bleaker as DL's pullout from serving DFW will mean further Southwest Airlines domination.

[MidtownCoog]

All nostalgia aside, if Delta can't compete, they shouldn't.

The airlines were degregulated a long time ago. Only the fittest will survive.

[Subdude]

You are underestimating how much the pull out will hurt DFW. This isn't just Delta pulling out mainline service, but also Comair, Atlantic Southeast, and any other regional carriers that fly under DL's colors!

This spring, Dallas will have 21 Delta flights. The ONLY service will be to Delta's other hubs in Atlanta, Cincinnati, and Salt Lake City.

This also affects IAH and HOU since both had numerous daily nonstops to DFW on regional jets. IAH will see an increase in frequency of two daily flights to Salt Lake City but overall will see a slight reduction in seats. At Hobby, things are much bleaker as DL's pullout from serving DFW will mean further Southwest Airlines domination.

If the demand is there other carriers will pick up the slack in flights and utilize the gates at DFW. The small regional carriers are actually in a relatively good position to adjust to changes in demand and major carriers, since a lot of the airline market is moving in the direction of more usage of the small carriers.

[editor]

If the demand is there other carriers will pick up the slack in flights and utilize the gates at DFW.  The small regional carriers are actually in a relatively good position to adjust to changes in demand and major carriers, since a lot of the airline market is moving in the direction of more usage of the small carriers.

Maybe, or maybe not. Witness Chicago where American and United suck up all available gates to keep the smaller, cheaper, more competitve carriers out. ATA and Southwest do the same thing at Midway. The combination forces new airlines to fly out of Gary, Indiana.

Delta reducing flights at DFW and IAH may mean more Southwest and Continental flights -- but possibly only to their existing fortress hubs, not to the same cities previously served by Delta.