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Rumor? Fact? UA CLE Big flight cut announcement?
September 30, 2012
2:18 pm
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michi

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Someone just told me that on Channel 5, it was supposedly said that UA will announce tomorrow that CLE will lose 100 departures.  Anyone else hear this?  Not sure if that is 100 departures a day, a week or something else...  There has been a rumor going around that there will be a big announcement regarding CLE on the 1st, so that might be it?

September 30, 2012
7:20 pm
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guy44137

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The actual story is up on Channel 5. You need to be a member to view our links.

I don't think it refers to any big announcement tomorrow. It just refers to the agreement between UA & the state of Ohio to keep service at certain levels. Tomorrow is the first day they are permitted to reduce service. We'll see if any major cuts materialize. It would seem odd, though, after UA just announced 2 new spokes from CLE. Only time will tell.

 

Remember the terms of the 2010 agreement:

For the first two years after the merger (i.e. until October 1, 2012):

  • The new United must maintain at least 90 percent, or 170, of the 189 average daily departures that the two airlines had at Cleveland Hopkins in the year before their combination.

During the remainder of the five year agreement (i.e. until October 1, 2015):

  • United's average daily departure obligation decreases to 67 percent of pre-merger strength—or 127 departures—in the event that "segment profitability" at Hopkins is more than 15 percent worse than the network as a whole, with annual losses in Cleveland of more than $25 million.
  • If segment profitability is more than $40 million in the red during the second year, minimum departures in year three can fall to 45 percent of pre-merger levels, or 85 average daily departures. The minimum in years four and five can fall to 14 percent of pre-merger departures, or 26 departures a day.
  • If United's Cleveland operations lose more than $40 million in years three or four, then the 14 percent rule applies.
  • If the Cleveland operations are losing money and more than 25 percent worse than United's network as a whole, United can walk away from the agreement entirely and can cut service as deeply as it deems necessar
September 30, 2012
11:27 pm
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Chuck Slusarczyk Jr.

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I hadn't heard anything about this at all, so it was interesting to see this.  I don't know what tomorrow will bring, but I'll be listening!  Thanks for the great reply guy44137...it's nice to see it spelled out like that.

October 1, 2012
12:34 am
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masseybrown

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Until somebody in Cleveland buys an airline, there is always cause to worry. However, I think an announcement on Oct 1 of huge cuts would be poorly timed.

One, UCH has all those RJs they theoretically can't get rid of until 2017 (?) and CLE, with its high short haul fare yields is a good place to keep them busy. Two, in September UA all but said CLE is currently profitable. Three, the October scheds add back departures cut earlier this year because of the Colgan turmoil and there are additional adds currently in the scheds for late winter/early spring that are *not* Florida/Carib flying. Small numbers, but adds none the less. Four, year-over-year O&D is slightly better than it was.

The only reason I can think of to cut CLE now would be some kind of maneuvering related to the pilots' tentative agreement.

October 1, 2012
10:30 am
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guy44137

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Another more positive spin on the CLE hub:

You need to be a member to view our links.

October 1, 2012
6:13 pm
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screaminemu

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I caught 5 seconds of this news teaser while waiting in line for a pizza; it's just the usual local news scare-tactic BS.  Put it right up there with "is a sex predator living next door?" or "your water could kill you! find out how tonight at 10."  

 

No merit to this whatsoever, at least not now.

October 18, 2012
11:32 am
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masseybrown

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They might as well cut service ... Yell

As an ex-CLE-er, I try to transit CLE when possible. I can't get the UA rez site to display a IAD-CLE-SFO connection for a SFO trip I'm taking in mid-December, even though there are at least two perfectly valid possibilities with competitive times - it WILL, however, display CLE-IAD-SFO as a connection, which is looney.

 

So why don't I fly non-stop, you ask? Because AA is offering F for pennies more than UA's nonstop Y fares.

October 21, 2012
5:50 pm
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Chuck Slusarczyk Jr.

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I can see how you would be frustrated.  I think Flyer Talk had a discussion on this.  I'm afraid things are just not what they used to be, and while some issues are being addressed, others seem to come up, and still more will probably just be the new normal.

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Rumor? Fact? UA CLE Big flight cut announcement? | Cleveland Service Updates | Forum