July has now started, so that means one thing – June traffic numbers! The first set of statistics I saw was Continental’s, and the report wasn’t the best. The airline’s monthly load factor decreased by 2.1 points, from 85.7% in June 2007 to 83.6% in June 2008. This change was caused by a slight decrease in revenue passenger miles (RPMs) by 0.1% and an increase in available seat miles (ASMs) by 2.5%. Basically, less people flew while capacity was increased.
Just for the fun of it, I played with the numbers. Continental announced earlier that they would cut ASMs by 6.4% across all of their hubs. So, assuming RPMs stayed the same, about a 5.8% increase in load factor would occur, to 89.4%. To put this in terms of aircraft, it would mean an extra seven people onboard one of Continental’s 737-700s that seat 124 passengers in a two-class configuration.
Obviously my calculations are pretty rough, but I’m fairly confident an increase in load factors due to capacity cuts will occur at most of the legacy carriers, especially United. This environment certainly isn’t the best for the average traveler. Higher loads and checked luggage fees will mean some very stuffed overhead bins.
Ok, I’m back from a great vacation, and I’m working on a trip report now. I have one more thought, though, on Continental’s intent to join the Star Alliance, and I’m not sure if anyone else has pointed it out. Last week I mentioned that Continental’s hub in Newark is good for the Star Alliance.
Remember when Lufthansa bought 19% of JetBlue? Many started to wonder what Lufthansa planned to do, and if a partnership would emerge. At that time, a partner at JFK was very attractive to the airline. I wonder if Contienental’s intention to move into Star changes any plans.
Greetings from sunny overcast and warm Fort Lauderdale! The flight was very good and I’ll share my thoughts on Southwest and their recent changes (I haven’t flown them in a year) when I get back.
Well this has been rumored ever since Continental turned down a merger with United, and it has finally happened. Continental will be launching a codeshare program with United, though the airlines will cooperate in many ways other than a simple codeshare, as the press release says. More importantly (I think), Continental wants to join the Star Alliance.
Honestly this move isn’t too shocking because of events going on in Skyteam. With the Northwest-Delta merger and their partnership with Air France and KLM, Continental probably felt a bit left out.
Continue reading ‘Continental Wants United Codeshare and Star Alliance Membership’
A few days ago Continental described the cuts it was making in its fleet. Well yesterday they issued another press release about what routes would be affected. And all I can say is, poor Cleveland. It’s getting the mostthe cuts in terms of domestic hubs. Remember how earlier Continental was expanding there? The city is losing most of that new service, though the new seasonal Paris flight seems safe (for now).
Some of these route cuts make sense to me, some don’t. For example, cutting the Hartford to House route is sensible as that flight was already seasonal (as was pointed out on Airlines.net). Newark to Salt Lake City confuses me a bit, as I thought it would be important in terms of passengers wanting to continue their trips with Contiental’s Skyteam partner Delta.
Fifteen cities will be taken off the route map due to these cuts, which is probaly where a good chunk of Continental’s planned job losses will take place. The one city that stood out for me was Oakland, California, simply because American announced the same about a month ago. Like American, Continental probably doesn’t want to deal with the strong LCC presence from JetBlue and Southwest at that airport.
US Airways also announced its cuts yetersday, and I plan to share my thoughts on those later today.
Today Continental issues a press release very similar to the recent announcments from
American and United: fleet reduction and workforce reductions. Continental’s fleet cuts are very much like United’s as the 737-300 and 737-500 aircraft are the main targets of the cuts. Apparently, the blended winglets being installed on both of these aircraft types were not enough to save them from the graveyard. While United is axing the entire 737 fleet, Continental is planning to remove all 737-300s but leave some 737-500s in the mix. Continental will still be adding new aircraft, though, as it still has deliveries planned for new 737-800s and 737-900ERs. It should also be noted that according to the Boeing order book, Continental still has 44 unfilled orders for 737-700s, so it will interesting to see what happens there. The press release provides a nice fleet breakdown. Overall, Continental’s capacity cuts don’t seem as drastic as American and United’s.
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