Continental Airlines
THE HUB IS NOT DEAD!
Talking heads on CNBC have suggested that the airline hub is dead. The attitude is that low cost carriers will continue to take share through direct flights. These talking heads are looking at old news and they simply do not understand the dynamics of the airline business.
Their comments are similar to saying that trucks are going to take all the freight traffic from the railroads or that railroads are going to take all the traffic from the truckers. It ain't a gonna happen. Discount carriers are the equivalent of the trucks and the legacy carriers are the equivalent of the railroads. The good news for the airlines is that it took only a few years to rationalize labor contracts whereas it took the railroads thirty years.
CAL is launching six trans-Atlantic routes from its New York/Newark hub this year. The hub serves as the collection point to fill up the international flights. CAL is experiencing high load factors on domestic and on international flights. The company has continued to expand its code sharing agreements and is part of a very large international network that feed one another's flights.
Anyone from small to medium town America who has taken a cruise or any over-seas flight has probably flown more than two legs to get to the final destination. Discount airline cannot match the total program involved. Consumers are not inclined to book one leg through one airline, the second through another, etc. Businesses negotiate programs that offer savings as total purchases reach discount points. Frequent fly-er miles programs also encourage consumers to stick with one company as much as possible.
CAL CAL just won the airline "Oscars" again. The company won the OAG awards this year for Airline of the Year, Best North American Airline and Best Executive/Business Class Airlines. The company has won each of these awards two or three years in a row.
THE HUB IS NOT DEAD! LONG LIVE THE HUB!
BUY THE BULL! LONG LIVE THE BULL!
THE HUB IS NOT DEAD!
Talking heads on CNBC have suggested that the airline hub is dead. The attitude is that low cost carriers will continue to take share through direct flights. These talking heads are looking at old news and they simply do not understand the dynamics of the airline business.
Their comments are similar to saying that trucks are going to take all the freight traffic from the railroads or that railroads are going to take all the traffic from the truckers. It ain't a gonna happen. Discount carriers are the equivalent of the trucks and the legacy carriers are the equivalent of the railroads. The good news for the airlines is that it took only a few years to rationalize labor contracts whereas it took the railroads thirty years.
CAL is launching six trans-Atlantic routes from its New York/Newark hub this year. The hub serves as the collection point to fill up the international flights. CAL is experiencing high load factors on domestic and on international flights. The company has continued to expand its code sharing agreements and is part of a very large international network that feed one another's flights.Anyone from small to medium town America who has taken a cruise or any over-seas flight has probably flown more than two legs to get to the final destination. Discount airline cannot match the total program involved. Consumers are not inclined to book one leg through one airline, the second through another, etc. Businesses negotiate programs that offer savings as total purchases reach discount points. Frequent fly-er miles programs also encourage consumers to stick with one company as much as possible.
CAL CAL just won the airline "Oscars" again. The company won the OAG awards this year for Airline of the Year, Best North American Airline and Best Executive/Business Class Airlines. The company has won each of these awards two or three years in a row.THE HUB IS NOT DEAD! LONG LIVE THE HUB!
BUY THE BULL! LONG LIVE THE BULL!
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