US, AA merger could cost Charlotte

Well here is what Parker said in Philadelphia yesterday (3/26) - which, if you want to believe, supports the theory that JFK will be primarily international O&D and PHL both international O&D and connecting traffic. Really, you have to give the guy credit, he knows exactly what to say at each hub to ensure political support for the forthcoming regulatory reviews. http://www.philly.co...h_American.html
the problem w/ the theory that one carrier can be focused on point to point in the same city that other carriers have hubs is that type of arrangement doesn't exist anywhere where the PTP carrier gets comparable average fares as the hub carrier.
The whole benefit of hubs is that they are able to control a higher percentage of local traffic and that share advantage also correlates to revenue premiums.
The notion that a carrier can be focused solely on local traffic at a city where 2 other carriers have hubs is unproven in the real world.
 

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