Tuesday, July 03, 2012
What's happening in Waco?
As some of you know, I regularly check the news over at KWTX.com to keep up on what is happening in Waco and surrounding areas. Right now there is the usual mayhem (i.e., Local Man Injured in Ambush-style Shooting Outside Grandmother's Home), but also a very troubling business event.
For the past decade at least, Waco has been "served" by both Continental and American Airlines. Continental flew to Houston, and American to Dallas, and you would connect from there. I usually flew on American, which too often flew the worst aircraft they had, small propeller planes which seemed to break down a lot and for at least a year could not land if it was cloudy. Still, it was sometimes a better bet than trying to drive to the far side of Dallas to catch a flight directly out of DFW. Continental flew better planes often, and had a reputation for being more reliable.
Then United Airlines bought Continental, and has now announced that it will discontinue service to Waco. This is bad, but I fear it will get worse for Waco down the road.
Here's the thing: If I were running American Airlines, it would be very tempting to cut service to Waco as well. Before, the flights served to keep people from that market from switching to Continental/United. Now,with no competition there and DFW (dominated by American) the closest hub to Waco, there seems to be little reason to stay-- people who want to fly and live in Waco will probably just drive to DFW and take American anyways. Unless I am missing something, American does not get much out of continuing that route.
What a disaster it would be for Waco to lose all air service! I cannot tell you what an advantage it is for me to be in Minneapolis-- I live and work 15 minutes from a hub, and can get a direct flight almost anywhere. It matters, if you travel a lot, and people in business and the academy often do.
I'm sure the community leaders in Waco are working on this problem, but I'm not sure what they can do-- it is unlikely that another airline will come to Waco without huge subsidies which a community like Waco probably cannot afford.
Yikes! Waco deserves better.
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United, I have come to believe, is wicked. Continental enjoyed a long run of sound management and labor peace under Gordon Bethune, and the culture he instilled prevailed until the merger with United. When I heard that the company headquarters was leaving Houston for Chicago, I suspected that the bottom line, top down culture of United would kill off the Continental mindset.
Recently, United has been making threats to Houston, too, and threatening to reduce international flights and other traffic.
I realize that the blog subject is Waco, but I had to vent about United. Continental was a good, customer-friendly airline, and I hated to see them go.
Recently, United has been making threats to Houston, too, and threatening to reduce international flights and other traffic.
I realize that the blog subject is Waco, but I had to vent about United. Continental was a good, customer-friendly airline, and I hated to see them go.
http://www.wacotrib.com/news/161169485.html
the issue at hand-- what would happen if american were to leave waco? (they have said in recent months that they're committed to that route, but that might change with this new development)-- is not addressed in this story, but i have it on good authority, even though i'm in The Motherland, that the Trib will address it soon.
the issue at hand-- what would happen if american were to leave waco? (they have said in recent months that they're committed to that route, but that might change with this new development)-- is not addressed in this story, but i have it on good authority, even though i'm in The Motherland, that the Trib will address it soon.
# posted by 
: 4:55 AM
: 4:55 AM
I will also vent about United. They have pulled local service from Beaumont which connected to Houston. The whole thing about Threatening to pull jobs (that they were already planning to pull) out of Houston if Houston approved Southwest's interenational terminal at Hobby was just Bush league. Houston had a strong allegiance to Continental. Their feelings for United are already much closer to disdain. There is certainly little loyalty left.
Dia-
Meanwhile, in Beaumont, they found a dead body and a refrigerator in the municipal pool according to the news. How did the lifeguards miss that?
Meanwhile, in Beaumont, they found a dead body and a refrigerator in the municipal pool according to the news. How did the lifeguards miss that?
It used to be just American/Dallas flying from Waco.
And yes, let me add to the chorus of disappointed United customers, most recently on my trip to/from Northern Ireland.
And yes, let me add to the chorus of disappointed United customers, most recently on my trip to/from Northern Ireland.
I grew up in Abilene, three hours west of DFW. When I lived there, the only airline service was American. I believe at some point, Continental may have started flying there too, but I'm not sure. At any rate, American (Eagle) controlled the market with no competition. Now, I realize that the distance may be a significant factor (90 miles vs. 180 or whatever), but I'm not sure why an airline would view having no competition in the market space to be a reason for pulling out. Is the cost of maintaining service to Waco really all that high that it justifies the loss of gate receipts altogether?
In fact, the lack of competition means that you control that market completely. While it's only 90 minutes away from the DFW Metroplex, getting to DFW Airport, finding parking, riding the shuttle in, and finally checking in will take far longer than just that. Not having to deal with the traffic, the long-term parking at a major hub, and the ease of check-in at a smaller airport would make it worthwhile to continue flying out of Waco, in my opinion. Plus if you do any flying at all, you get the added bonus of the extra miles on the hop from Waco to DFW.
Unless the costs of maintaining service to Waco are so high as to render it a loss, it seems to me that another airline pulling out of Waco would be cause to celebrate, not consider pulling out also.
In fact, the lack of competition means that you control that market completely. While it's only 90 minutes away from the DFW Metroplex, getting to DFW Airport, finding parking, riding the shuttle in, and finally checking in will take far longer than just that. Not having to deal with the traffic, the long-term parking at a major hub, and the ease of check-in at a smaller airport would make it worthwhile to continue flying out of Waco, in my opinion. Plus if you do any flying at all, you get the added bonus of the extra miles on the hop from Waco to DFW.
Unless the costs of maintaining service to Waco are so high as to render it a loss, it seems to me that another airline pulling out of Waco would be cause to celebrate, not consider pulling out also.
Pope--
The thing is, no one just flies from Waco to Dallas-- they connect to other places, and the ticket is often about the same price flying from Waco as it is from Dallas (at least that was true way back in the 00's, when I was in Waco). That means they make no money, or lose some, with each flier. The reason to have the service is to get the customer to your airline for the longer flight, I think.
On your other point: I found that it made more sense to drive to Dallas because the service between Waco and Dallas was so unreliable. It is faster to take the plane from Waco... if it actually goes, and too often it does not, or is significantly late.
The thing is, no one just flies from Waco to Dallas-- they connect to other places, and the ticket is often about the same price flying from Waco as it is from Dallas (at least that was true way back in the 00's, when I was in Waco). That means they make no money, or lose some, with each flier. The reason to have the service is to get the customer to your airline for the longer flight, I think.
On your other point: I found that it made more sense to drive to Dallas because the service between Waco and Dallas was so unreliable. It is faster to take the plane from Waco... if it actually goes, and too often it does not, or is significantly late.
The American Eagle service from Waco to DFW is all jets now, which has dramatically improved its speed and reliability. It's a huge advantage to be able to fly out of Waco.
I'm not sure Waco is one of these airports, but I know a lot of smaller regional airports around the country receive subsides to keep/attract air routes that help defray the cost of service for the airline. Also, all the Waco to DFW flights I've been on lately have been very full. I'd think American Eagle is turning some sort of profit on those flights.
But airfare pricing is certainly puzzling. If anyone can figure it out, please let me know.
I'm not sure Waco is one of these airports, but I know a lot of smaller regional airports around the country receive subsides to keep/attract air routes that help defray the cost of service for the airline. Also, all the Waco to DFW flights I've been on lately have been very full. I'd think American Eagle is turning some sort of profit on those flights.
But airfare pricing is certainly puzzling. If anyone can figure it out, please let me know.
# posted by : 2:18 PM
: 2:18 PM
Growing up in La Crosse, WI, two and a half hours south east of the Twin Cities, there was always a debate about whether to fly or drive to MSP.
The difference with Waco was that a) it always cost more to fly out of La Crosse, but sometimes you got lucky and it was not that much more; and b) there were four or five airlines serving a metro area of 85,000, some going to MSP and others O'Hare, so you had options based on price, service, frequent flyer miles, etc.
I would imagine one option for American in Waco would be to simply raise prices. Is it worth $150-$250 not to have to drive to Dallas? Depends on who is paying I suppose.
Of course one thing you did not have to contend with in Waco I assume was weather. Though maybe I'm wrong about that? I don't know.
Up here, on some occasions you could fly through whether that you would not want to drive in, thick snow that is not too wet for example.
But on the other hand, you could also get stuck at MSP with no way home because the planes were grounded due to ice. Nothing makes your night like being at the airport longer than it would have taken you to drive home. More than one person has rented a car, weather be damned, and made it home in spite of the airlines/god/ and the weather.
I guess we can just be happy that most of us do not live some place really remote where one has to drive four hours, to then pay extra to catch a hop and then wait for their connecting flight before reaching civilization. Though I suppose that is often the point of living in such places.
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The difference with Waco was that a) it always cost more to fly out of La Crosse, but sometimes you got lucky and it was not that much more; and b) there were four or five airlines serving a metro area of 85,000, some going to MSP and others O'Hare, so you had options based on price, service, frequent flyer miles, etc.
I would imagine one option for American in Waco would be to simply raise prices. Is it worth $150-$250 not to have to drive to Dallas? Depends on who is paying I suppose.
Of course one thing you did not have to contend with in Waco I assume was weather. Though maybe I'm wrong about that? I don't know.
Up here, on some occasions you could fly through whether that you would not want to drive in, thick snow that is not too wet for example.
But on the other hand, you could also get stuck at MSP with no way home because the planes were grounded due to ice. Nothing makes your night like being at the airport longer than it would have taken you to drive home. More than one person has rented a car, weather be damned, and made it home in spite of the airlines/god/ and the weather.
I guess we can just be happy that most of us do not live some place really remote where one has to drive four hours, to then pay extra to catch a hop and then wait for their connecting flight before reaching civilization. Though I suppose that is often the point of living in such places.
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