WallSTREETJournal: Delta CuttingFlts and MEM jobs (Memphis: good, interview)

[MetropolitanTN]

OK, so why are the O/D numbers falling so dramatically? If that number doesnt include those who are connecting, then what is it suggesting about Memphis International or the city itself?

I'm sorry, I'm not too familiar with Memphis or what goes on there. I just pop into this forum every so often we an interesting thread is as the top.

[Carlito Brigante]

So stalking me around city-data forums makes you feel better about the countless problems in Memphis that worsen daily because people like you are too busy cheerleading and denying them to address them?

And trust me, Memphis has NOTHING on Dallas, but if copying and pasting posts I made about it makes you feel better, then knock yourself out. Memphis has been eating Dallas', Houston's, Atlanta's, Charlotte's, NASHVILLE's, etc. dust for years now, so trying to copy and paste posts I make pertaining to Dallas or anything other dynamic, progressive city doesn't prove anything or help your points. If it did, large amounts of people wouldn't be leaving Memphis or turning it down to go live and work in any of those other cities like they do, and Memphis would be attracting those cities' young talent, educated citizens, potential businesses, and tax base instead of the other way around.

[nashvols]

Originally Posted by ETSUAccountingGuy

OK, so why are the O/D numbers falling so dramatically? If that number doesnt include those who are connecting, then what is it suggesting about Memphis International or the city itself?

I'm sorry, I'm not too familiar with Memphis or what goes on there. I just pop into this forum every so often we an interesting thread is as the top.

O/D isn't falling (at least not dramatically). The makeup of the airport is changing, which can be expected with de-hubbing. If 60% of the 6.7 million total passengers in 2012 at MEM were O/D, that would be about 4 million O/D. Assume that figure stays pretty stable (you would figure the demand for people flying to and from Memphis will be about the same). So if Sammons believes that will shift to 90% O/D after the next reduction in flights, then airport traffic would fall to ~4.5 million (still 4 million O/D, but only 500k connecting).

When Memphis was a major hub for Northwest, probably 65-70% of all traffic was connecting.

[VSRJ]

Originally Posted by Carlito Brigante

So stalking me around city-data forums makes you feel better about the countless problems in Memphis that worsen daily because people like you are too busy cheerleading and denying them to address them?

And trust me, Memphis has NOTHING on Dallas, but if copying and pasting posts I made about it makes you feel better, then knock yourself out. Memphis has been eating Dallas', Houston's, Atlanta's, Charlotte's, NASHVILLE's, etc. dust for years now, so trying to copy and paste posts I make pertaining to Dallas or anything other dynamic, progressive city doesn't prove anything or help your points. If it did, large amounts of people wouldn't be leaving Memphis or turning it down to go live and work in any of those other cities like they do, and Memphis would be attracting those cities' young talent, educated citizens, potential businesses, and tax base instead of the other way around.

Carlito, do you have any hard data or facts to support your "dust-eating" claims? Simply saying that Memphis has "countless problems that worsen daily" means nothing. I can just as ignorantly say that Memphis is the best city on the planet and is doing everything right. Do you not see where that looks silly? You're doing the exact same thing, but on the opposite end of the spectrum.

[tigerphan]

Memphis airport is no longer competitive in part because of the consolidation between NWA and Delta....but it was only maintained as a hub for this long so Delta can keep their competition out of a major airport with hub infrastructure in the center of the country.

Delta maintained a hub status for this long only to maintain a defensive position in the Memphis market and prevent new low cost carriers from gaining market share. After the Continental/United merger, there was no need to hold a defensive position in Memphis.

At least Memphis will finally attract low cost carriers. It will become a large regional airport like Cincy or St Louis, with competitive rates and steady passenger volume that will come at the expense of Little Rock and Jackson.

Delta was giving us what essentially amounted to a slow strangle. They were charging sky high rates and cutting service just slowly enough to keep their major low costs competitors away. Once two of their competitors consolidated into Dallas, they no longer needed Memphis.

In my opinion, I'd rather have a large regional airport in my city than what Delta has been providing for the past 5 years. The airport will attract more carriers with more routes....we just won't be a hub unless a new airline moves into town.

[MetropolitanTN]

I think tigerphan as the most likely response to this whole ordeal. I also agree that positive changes may come from this de-hubbing.

[pappy35]

My comment meant only that would like to move back to Indianapolis if the opportunity presets itself. It did NOT mean anything negative about Memphis though some people like to jump to conclusions.

[characterRef]

Originally Posted by VSRJ

Carlito, do you have any hard data or facts to support your "dust-eating" claims? Simply saying that Memphis has "countless problems that worsen daily" means nothing. I can just as ignorantly say that Memphis is the best city on the planet and is doing everything right. Do you not see where that looks silly? You're doing the exact same thing, but on the opposite end of the spectrum.

Gee, I don't really need a copious amount of "hard data" in order to see, witness and experience what can be learned empirically, and indeed rationally.

Since living in Memphis, opening my own eyes and ears has been exceedingly, ergo sufficiently elucidative to express "opinions" about life in Memphis, TN methinks.

Traveling, and having had the op[portunity to live in other cities helps too ! ha ha

I learned that many folks in Memphis "see what they want to see", and "imagine what is not there" too

[SippiStateBulldogs]

I see a whole lot of negative energy toward Memphis in this thread. And why are we comparing ourselves to Austin, Nashville, Tampa, Raleigh, or Charlotte.

[nashvols]

Originally Posted by MissStateDawg

I see a whole lot of negative energy toward Memphis in this thread. And why are we comparing ourselves to Austin, Nashville, Tampa, Raleigh, or Charlotte.

Actually, I think a comparison to Nashville isn't the worst thing in the world for this discussion:

Avoiding a Tailspin - Memphis Daily News

“It was a huge blow to our ego and I would say everyone’s feelings were hurt,” said Butch Spyridon, who since 1991 has served as president and CEO of the Nashville Convention and Visitor’s Bureau.

“Then we went into a bit of panic in terms of losing all these seats and markets,” he said. “How were we going to grow? How were we going to recover? That became the paramount issue.”

Spyridon has advice for Memphis, which will see Southwest here this November.

“I think it’s getting over the mental and philosophical blow that occurs with losing that hub,” he said, adding the focus should be “on where your growth can and should be, and how do you overcome it.

“I think the best thing that can come out of this for Memphis is that Southwest and AirTran are sitting there ready to help fill some of the voids and the city should take advantage of that,” he said. “Fortunately for us, Southwest had made some significant overtures to us before we went the hub direction. As opposed to being the rejected suitor after, they were a ready and willing replacement partner.”

...

Memphis does have the edge on 1996 Nashville.

Back then, business travelers expected the best of the best. In 2013, leg room, while nice, in no way trumps low rates in today’s market.

“It’s easier to talk about it today because value and cost is so much more important than whether or not I have a first-class seat,” Spyridon said. “But at the time, largesse was pretty prominent in the meeting industry.

“And so it really took relationship selling and convincing decision-makers that the trade-off with having a lower fare and the potential for higher attendance offset the convenience or comfort of a first-class seat.”

Nashville was an American Airlines hub for a while, with a daily flight to London (similar to Memphis's flight to Amsterdam). It was certainly a big hit to our ego when they dehubbed us, as I feel losing the Delta/Northwest hub is/will be for Memphis. But the article lays out why it's not the end of the world...you just have to really work at it. We had a good little dip in our passenger service until Southwest was fully able to take advantage. Right now, though, our airport is actually busier than it was when it was a hub.