Re: NYTimes.com Article: US Airways; Stock Hurt By Southwest

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Thanks for providing all of that factual information David.  It is quite=20
evident that Baha got shortchanged in his college education at Istanbull U.

Jose Prize
Fan of Turkeys

In a message dated 12/15/2003 7:17:36 PM Eastern Standard Time,=20
damiross2@xxxxxxxxxxx writes:

> Subj: Re: NYTimes.com Article: US Airways; Stock Hurt By Southwest=20
>  Date: 12/15/2003 7:17:36 PM Eastern Standard Time
>  From: damiross2@xxxxxxxxxxx
>  Reply-to: AIRLINE@xxxxxxxxxxxxxxxxx
>  To: AIRLINE@xxxxxxxxxxxxxxxxx
>  Sent from the Internet=20
>=20
> A commercial airline hub is not the same thing as an air traffic hub. It=20
> refers to an airport that serves as a major transfer point in a commercial=
 air=20
> carrier=E2=80=99s route system. This practice of routing flights through a=
 hub airport=20
> was adopted by most major air carriers following airline deregulation as a=
=20
> way to increase passenger loads to and from airports serving smaller marke=
ts.
> (http://www.bts.gov/publications/transportation_statistics_annual_report/2=
000
> /chapter4/enplanements_at_major_us_airports_box.html)
>=20
> Most of the 12 major U.S. passenger airlines in operation as of 2001 use a=
=20
> hub-and-spoke network to route their plane traffic. The words "hub" and=20
> "spoke" create a pretty vivid image of how this system works. A hub is a c=
entral=20
> airport that flights are routed through, and spokes are the routes that pl=
anes=20
> take out of the hub airport. Most major airlines have multiple hubs. They=20
> claim that hubs allow them to offer more flights for passengers...
> Not all airlines use the hub-and-spoke approach. For example, Southwest=20
> Airlines is one of the exceptions to the hub-and-spoke network system. It=20=
uses=20
> the old-fashioned point-to-point system, hauling people short distances wi=
th=20
> few connecting flights. However, Southwest offers very few non-stop flight=
s on=20
> longer routes. At the end of 2000, Southwest served approximately 306=20
> one-way, non-stop city pairs. It's point-to-point system provides a more d=
irect=20
> route than a hub-and-spoke airline can offer.=20
> (http://travel.howstuffworks.com/airline3.htm)
>=20
> Southwest Airlines Co. ("Southwest") is a major domestic airline that
> provides predominantly shorthaul, high-frequency, point-to-point, low-fare
> service. Southwest was incorporated in Texas and commenced Customer Servic=
e=20
> on
> June 18, 1971 with three Boeing 737 aircraft serving three Texas cities -
> Dallas, Houston, and San Antonio. (WN annual report, available at Investor=
s=20
> Relations on the WN web page)
>=20
> Hubs, in my opinion, suck.  While it may be good for the airline, in many=20
> cases it makes no sense for the passenger.  Come on - look at a map. The L=
A=20
> area is nearly due south of SEA. Yet, if you want to fly Delta, you need t=
o go=20
> hundreds of miles out of the way and connect in SLC!  Except for airline n=
uts=20
> like myself, that makes no sense whatsoever.
> David R
>=20
>=20
>=20
>=20
>=20
> >>A hub is defined as a bank of flights that arrives at approximately the
> >same time and departs at approximately the same >time.  By this definitio=
n,
> >WN does not hub.  They happen to have a lot of flights at a given airport
> >that gives the pax a >good connection opportunity.
> >
> >Sorry,
> >a hub is a hub because of people connecting through it. You set your hub
> >according to the geographical location and the people go through it becua=
se
> >of exponential number of increases in destinations served from a spoke
> >point. There are even mathmatical formulae that define the benefit of a=20
> hub.
> >
> >Southwest claims not to have hubs, but then again OAK, HOU, MDW, MDW, etc=
.
> >are all hubs.
> >
> >Some of the airlines that are claiming not to have hubs, they actually do=
.
> >
> >Hubs are good.. Skipping some of the hubs and providing some point to poi=
nt
> >service like America West's JFK-LAX flights is better. Combining both is
> >priceless :)
> >
> >BAHA
> >Fan of hours spent transportation economics journal in college :)
>=20

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