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Old 02-18-2013, 08:57 AM
 
9,326 posts, read 19,034,141 times
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I know this thread is older, but thought this would be interesting to folks:
Airline merger could squeeze some hub airports - US News and World Report

Basically it says the merger between American and US Airways could have a severe impact to Charlotte Airport and mentions Chiquita.

Charlotte Airport officials said the city has prospered from hub status, with 8,000 new companies investing more than $5 billion in the area to create more than 78,000 jobs since the current terminal opened in 1982. Among them is Chiquita Brands International, which announced in 2011 it was abandoning Cincinnati in large part because of greater access to foreign flights from Charlotte. Cincinnati's airport had been hit hard by Delta's decision to shift flights to other hubs after merging with Northwest Airlines in 2007.


Basically if Charlotte loses hub status, it will have an impact on the city.. My boss asked me what I thought of moving to Charlotte.. I bit my tongue (ugh I was not impressed by that city). I'm not sure where all these jobs are in Charlotte.. the unemployment there is roughly 10%, higher than national average.
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Old 02-18-2013, 09:19 AM
 
Location: Cincinnati (Norwood)
3,386 posts, read 3,720,370 times
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Quote:
Originally Posted by minibrings View Post
I know this thread is older, but thought this would be interesting to folks:
Airline merger could squeeze some hub airports - US News and World Report

Basically it says the merger between American and US Airways could have a severe impact to Charlotte Airport and mentions Chiquita...

...Basically if Charlotte loses hub status, it will have an impact on the city...
Yes, minibrings, may I extend my own deepest sympathy to Charlotte if an American/US Airways merger does to them what the Delta/Northwestern merger did to Cincinnati. Oh, the horror of it all! (My tears are already falling.)

Last edited by motorman; 02-18-2013 at 10:43 AM..
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Old 02-18-2013, 10:12 AM
 
864 posts, read 1,200,711 times
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I had a feeling this was going to happen. Thanks for posting the article!
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Old 02-18-2013, 01:58 PM
 
Location: Mason, OH
9,259 posts, read 13,413,605 times
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I too saw the merger announcement and said to myself Charlotte you are in trouble. And I agree no tears shed. They had plenty of examples, including Cincinnati and Pittsburgh to learn from.

One difference may be the new head of the merged airline will be from U.S. Airways. He may be partial to Charlotte and skuttle one of their other east coast hubs. I don't expect that to happen, but it could. I find it interesting with these mergers the head of the smaller entity ends up running the combined. It was that way with Delta and Northwest.

I always attributed that to why Detroit, which Northwest had made major investments in, was chosen over Cincinnati, causing the decrease at CVG.

Let's look at the actual conditions. American is still struggling to come out of bankruptcy. So they decide to merge with U.S. Airways. This has to have the blessing of the bankruptcy court. The operating officers of the merged company will come from U.S. Airways. Add to that the problems with the air traffic control conjestion problems on the east coast, and Charlotte may come out of this smelling like a rose.

What are the conditions? How many people flying through New York actually just change planes to somewhere else? If you are actually going to NYC and we can provide you with a transfer out of Charlotte are you really inconvenienced? And if we provide you with a sky lounge and a fresh hot breakfast, how do you feel now?

These airline mergers are causing problems all over the country and they are obviously not done yet.

At some point the Federal Government has to step in and declare monopoly practices and the controls which go with them.
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Old 02-18-2013, 02:44 PM
 
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Brill... I think you might be confused on the Delta-Northwest merger.

http://www.nytimes.com/2008/04/15/bu...anted=all&_r=0

Delta was the larger airline and took the majority of the leadership positions. They kept the Detroit hub because it services a larger market; Cincinnati without Comair doesn't serve the same purpose as a hub as Detroit and Atlanta are able to. Beyond that, Delta's presence at CVG was already being reduced prior to the merger as the airline business model changed post-dot com bust, 9-11, and increased oil prices.

http://news.cincinnati.com/article/2...lf-all-flights
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Old 02-18-2013, 03:08 PM
 
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I posted back when this thread was active that Chiquita has a history of jumping from place to place. And I was attacked by the Charlotte crowd for it. Cincinnati wasn't Chiquita's first headquarters and Charlotte certainly won't be its last. This airline merger notwithstanding, Chiquita will be in South Florida soon enough.

And Chiquita isn't the most stable company to begin with. They lost a boatload of employees who chose not to move to Charlotte, including their CEO Fernando Aguirre. We'll see what happens ...
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Old 02-18-2013, 03:40 PM
 
Location: Mason, OH
9,259 posts, read 13,413,605 times
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Quote:
Originally Posted by n8buckeye08 View Post
Brill... I think you might be confused on the Delta-Northwest merger.

http://www.nytimes.com/2008/04/15/bu...anted=all&_r=0

Delta was the larger airline and took the majority of the leadership positions. They kept the Detroit hub because it services a larger market; Cincinnati without Comair doesn't serve the same purpose as a hub as Detroit and Atlanta are able to. Beyond that, Delta's presence at CVG was already being reduced prior to the merger as the airline business model changed post-dot com bust, 9-11, and increased oil prices.

http://news.cincinnati.com/article/2...lf-all-flights
What was announced in the merger is not exactly what actually happened. Yes Delta was the larger entity but also was financially hemorraging the most. The bankruptcy court had a lot to say with how the merger ultimately went down. Northwest executives ended up with a number of operating positions in Atlanta. The Northwest investment in Detroit was too large to ignore, and the rising fuel costs were already setting the demise of the RJ and Comair. Look at the operating executives of Delta today and I believe you will find a lot of Northwest people.

Similar conditions are at work in the American - U.S.Airways merger. American is the larger but has been struggling to get out of bankruptcy. The head of U.S.Airways has already been identified as the operating head of the merged airline, with the American head kicked up to chairman of the board, mostly ceremonial. American needs U.S.Airways far more than the other way around.

Charlotte could come out of this as the big loser as was Cincinnati, or the winner. Of course they have announced they will be keeping all 8 hubs, but everyone in the industry does not expect that to happen. It will boil down to the traffic patterns, particularly the international flights. What percentage of passengers will take international flights out of Charlotte originating from American flights in the U.S. If a high enough percentage Charlotte will retain its status and maybe even grow. Otherwise goodbye Charlotte.
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Old 02-19-2013, 06:32 PM
 
9,326 posts, read 19,034,141 times
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Quote:
Originally Posted by motorman View Post
Yes, minibrings, may I extend my own deepest sympathy to Charlotte if an American/US Airways merger does to them what the Delta/Northwestern merger did to Cincinnati. Oh, the horror of it all! (My tears are already falling.)
I am fortunate to NOT live in Charlotte. I was asked what I thought of moving there a month ago... and I had to bite my tongue. Not interested in the south and I don't trust that my firm won't lay me off. They laid off my boss (he worked the firm for 30 years) so they have no loyalty. The unemployment rate in Charlotte is 10%, above the national average so in my mind worse case scenario is: work for unstable company, move to Charlotte, get laid off, can't find a job due to high unemployment then have to move again.

No thanks. My best friends are all in northern KY.. I wouldn't mind being in that area, I know it well.
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Old 03-11-2013, 07:26 PM
 
Location: Cincinnati(Silverton)
1,578 posts, read 2,311,098 times
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Ouch!!!

Chiquita lost $408 million in 2012 | CharlotteObserver.com
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Old 03-11-2013, 08:49 PM
 
2,492 posts, read 3,665,469 times
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Quote:
Originally Posted by unusualfire View Post
Teeheeheehee

And those Charlotte folks thought they were getting some stable, long-term company. They wouldn't listen to cautionary tales about their new company. Now, if anything, the Chiquita move south looks like the rearranging of deck chairs on Titanic.
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