New Routes In 2004
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The discontinued utilization of Columbus as a hub was a result of several circumstances:
1. The then-impending war with Iraq.
The airline industry was reeling once again, with several airline stocks near or below immediate post-September 11 levels. The level of uncertainty was such that America West could not continue the apparent financial burden that the Columbus hub was placing on them.
2. The softened business travel market.
Business travel was a core aspect of the Columbus hub, especially local traffic to major East Coast business markets.
3. America West's then still troubling financial position.
Even though America West was beginning to get on the right track towards profitability, cuts were still being made, such as the 200-some middle management positions that were cut. Sadly the axe came down on the Columbus operations hardest of all.
4. The new fare structure.
Probably the greatest circumstance leading to the hubs demise. The new fare structure proved to be exceedingly popular, as flights into the Columbus hub were always packed after in came into effect. For example, the CMH-YYZ route had terrible loads during the first few months of operation, with walkup fares as high as $1,000+. When the new fare structure came into place, the prices dropped and the loads increased dramatically, so much so that a 4th frequency was put in a few months before the announcement of the hub's closure. The same went for many other markets from CMH. However, with the airline flying expensive to operate 50-seat jets flying full of connecting passengers at very cheap fares, the hub immediately became a money loser, even though it accounted for 10% of the airline's overall revenue.
5. Increased pressure from other airlines in Columbus.
To further hurt America West's standings in Columbus, increased competition from other airlines, most significantly Delta, ate away at America West's revenues. Delta Connection began 3 frequencies to DCA, which was at one time a critical America West route from CMH, as well as trumping HP's frequencies to Orlando by offering 4 regional jet flights to Orlando while America West operated 2 Airbus aircraft whose 12 first class seats ran empty or occupied with reward recipents or non-revvers.
6. No desire on the airline's part to invest in their CMH hub operations.
America West could definitely have taken advantage of the strong points Columbus still had to offer, mainly being an extremely popular connecting alternative to monstrous and more expensive hub airports around the region as well as the abundance of leisure travelers in the market and overwhelming support from local business and government leaders. Had the airline used more of their own metal on the most popular routes from CMH instead of the ERJs (i.e. BWI, DFW, ORD) and used the RJs to serve smaller cities that would not be feasable from PHX, I do think the hub could have remained an integral part of America West's route system.
Oh and by the way, the fact that the Ohio plane is still flying feels like a smack in the face to me, especially the pathetic little comment America West has concerning the scheme on the airline's website:
The Ohio Plane - In honor of Ohio's commitment to America West Airlines.
Whatever. Local and state leaders in Columbus and Ohio pushed for the government to grant America West those government loans with as much passion as those in Arizona and Nevada. And in honor of that commitment, we get to have the Ohio plane stay in those colors until its next D-check. Wow. Thank you. I truly loved working with America West in CMH, they were a wonderful company to work for and I had some of the best time of my life with the company, but the way the airline let me, my colleagues, and the entire city down over a year ago still leaves a terrible scar.
1. The then-impending war with Iraq.
The airline industry was reeling once again, with several airline stocks near or below immediate post-September 11 levels. The level of uncertainty was such that America West could not continue the apparent financial burden that the Columbus hub was placing on them.
2. The softened business travel market.
Business travel was a core aspect of the Columbus hub, especially local traffic to major East Coast business markets.
3. America West's then still troubling financial position.
Even though America West was beginning to get on the right track towards profitability, cuts were still being made, such as the 200-some middle management positions that were cut. Sadly the axe came down on the Columbus operations hardest of all.
4. The new fare structure.
Probably the greatest circumstance leading to the hubs demise. The new fare structure proved to be exceedingly popular, as flights into the Columbus hub were always packed after in came into effect. For example, the CMH-YYZ route had terrible loads during the first few months of operation, with walkup fares as high as $1,000+. When the new fare structure came into place, the prices dropped and the loads increased dramatically, so much so that a 4th frequency was put in a few months before the announcement of the hub's closure. The same went for many other markets from CMH. However, with the airline flying expensive to operate 50-seat jets flying full of connecting passengers at very cheap fares, the hub immediately became a money loser, even though it accounted for 10% of the airline's overall revenue.
5. Increased pressure from other airlines in Columbus.
To further hurt America West's standings in Columbus, increased competition from other airlines, most significantly Delta, ate away at America West's revenues. Delta Connection began 3 frequencies to DCA, which was at one time a critical America West route from CMH, as well as trumping HP's frequencies to Orlando by offering 4 regional jet flights to Orlando while America West operated 2 Airbus aircraft whose 12 first class seats ran empty or occupied with reward recipents or non-revvers.
6. No desire on the airline's part to invest in their CMH hub operations.
America West could definitely have taken advantage of the strong points Columbus still had to offer, mainly being an extremely popular connecting alternative to monstrous and more expensive hub airports around the region as well as the abundance of leisure travelers in the market and overwhelming support from local business and government leaders. Had the airline used more of their own metal on the most popular routes from CMH instead of the ERJs (i.e. BWI, DFW, ORD) and used the RJs to serve smaller cities that would not be feasable from PHX, I do think the hub could have remained an integral part of America West's route system.
Oh and by the way, the fact that the Ohio plane is still flying feels like a smack in the face to me, especially the pathetic little comment America West has concerning the scheme on the airline's website:
The Ohio Plane - In honor of Ohio's commitment to America West Airlines.
Whatever. Local and state leaders in Columbus and Ohio pushed for the government to grant America West those government loans with as much passion as those in Arizona and Nevada. And in honor of that commitment, we get to have the Ohio plane stay in those colors until its next D-check. Wow. Thank you. I truly loved working with America West in CMH, they were a wonderful company to work for and I had some of the best time of my life with the company, but the way the airline let me, my colleagues, and the entire city down over a year ago still leaves a terrible scar.
OP
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coolflyingfool
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- Aug 20, 2002
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I always suppose that small communities like that of Kalispell are always extremely excited when they get 1 new flight. Good for them. I wonder if DL will respond with lower fares?
Kev3188
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"I wonder if DL will respond with lower fares?"
Or NW, for that matter.
Or NW, for that matter.
OP
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Another transcon added to the list...LAX-IAD starts June 1st..No SFO though. Guess they decided United would be angry enough. Not a surprise. IAD-PHX is doing rather well.
Cosmo
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- Aug 20, 2002
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I know that HP has been considering additional transcon markets, and the start of their LAX-IAD service will certainly impact American and United, the two incumbent nonstop carriers on that route. But you have to wonder if this is also a warning shot aimed at Independence Air. Just because Indy will be an LCC doesn't mean they won't be targeted by the other LCCs, in this case pre-emptively.
It always seems like HP is a follower in added new routes to places instead of taking a chance., such as adding CLT, or with such places as Alaska, everybody is doing it, we need to as well. HP wants to be thought of as one of the top LCC it needs to take charge and trying to get in there before other LCC's. However I think this is all a bit of a pipe dream if the increase in overall fleet size stays pretty stagnet.
coolflyingfool
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- Aug 20, 2002
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I would think that AWA would go for it when it comes to competing on routes with US right now. CLT would do well from LAS and PHX. Why doesn't AWA operate to OKC and TUL? Some RJ's would compete with SWA.
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