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Friday, August 31, 2007

Profits, not love, will get Delta's attention

The timing seems good for business and consumer groups to join ranks over Delta's high fares out of the Cincinnati/Northern Kentucky International Airport. Part of that is starting to happen, as witnessed by the story in today's Enquirer about efforts in the business community to pressure the now-profitable carrier to give the region some relief.

It's important: Delta's fares can impede the region's ability to attract and retain good jobs. And the fares are big barriers for anyone thinking of coming here as a tourist, convention-goer, friend or family member.

People appreciate that we have so many non-stop flights to so many places, and everyone I know is willing to pay a bit more for convenience and service that far exceeds many regions our size. But it's hard to buy Delta's claim that maintaining the CVG hub justifies fares that are routinely double (or more) the cost of flying out of Dayton, Louisville or Indianapolis. Delta doesn't have a hub here as a public service. Show me the accounting that justifies $1,200 round trips from Cincinnati to Washington when non-stops from Dayton are under $300.

Of course, Delta is in business to make money, not take pity on us. CVG spokesman Ted Bushelman often points out that whenever discount carriers have come to CVG, consumers haven't supported the newcomers, flocking back to Delta once the airline matched the introductory prices. Then the competitor leaves and the prices go back up.

This region has shown Delta a lot of love over the years, but -- as Tina Turner sang -- what's love got to do with it? The case has to be made on the most fundamental level. Nothing will change until Delta believes it will make more money, not less, by doing what the region needs Delta to do.


7 Comments:

at 3:45 PM, August 31, 2007 Anonymous Anonymous said...

It's ridiculous to expect Delta to lower its rates as an act of civic duty. Delta flies planes to make money.

If you want lower fares you have to get businesses to support and/or subsidize a low cost carrier at CVG, for competition to Delta.

Open and Free Markets set fair pricing not benevolent monopolist.

 
at 9:17 AM, September 01, 2007 Anonymous Anonymous said...

We need to get Southwest in here. It's as simple as that.

 
at 1:08 PM, September 01, 2007 Anonymous Anonymous said...

Problem is the biggest companies get discounts from Delta, effectively eliminating any motivation to compete. It would be very interesting to know what P&G, GE, Macys, and other large companies pay to fly in and out of CVG. I'm certain Delta will leverage their "fortress hub" advantage to effectively curtail another airlines' attempt to compete. Another example where the "boutique" business catering to a specific clientele serves its own, with "the rest of us" not part of the club simply pay more, or go elsewhere.

It's nice for the region to have a Tiffany/Saks/Jeff Ruby/Jean Robert airport. Too bad the majority of citizens can't afford to fly out this jewel.

 
at 1:35 PM, September 03, 2007 Anonymous Anonymous said...

I don't know what percent of the ridership on Delta out of CVG is the P&G crowd.

Why can't the second tier of corporate ridership Cooperatively Schedule their airfare with a low cost new carrier to ensure that a Southwest will stay at CVG once Delta starts to match lower fares? Seems that a not for profit entity could organize this collaborative effort for everyones benefit, including individual private ridership.

 
at 8:58 PM, September 05, 2007 Anonymous Anonymous said...

The Enquirer could help by using its bully pulpit to devote a couple of front page inches every day to publishing comparative fares for Delta-CVG vs. Delta-Louisville, Indy, and Columbus. Throw in a couple of Southwest and Jet Blue fares. Remind everyone in Cincy how we're being hosed often enough and something good will happen some day.

 
at 10:50 AM, September 06, 2007 Anonymous Anonymous said...

its got nothing to do with love and everything to do with regulation. airline fares have been crazy ever since reagan deregulated the airlines. there is no rhyme or reason to what is charged.

 
at 4:15 PM, September 06, 2007 Anonymous Anonymous said...

Fact: industry wide ridership is up and fares are down after deregulation, even after 9/11.

Delta just has a pseudo monopoly at CVG.

But don't let facts affect your unfounded logic.

 
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