Will Deltas Cincy cuts invite low-cost competition?
Delta’s announcement this week that it would cut flights at its Cincinnati hub by 26% may have been a necessity for the financially strapped airline, but experts say the move comes with a big risk. Delta currently dominates the Cincinnati market, meaning the carrier can typically set fares there without fear of being undercut by rivals. Delta’s Cincinnati dominance also has helped scare off low-cost carriers from that market, but the cuts could leave an opening that may make Cincinnati too tempting a target for a low-cost carrier to avoid. “I hope (Delta) thought this through very carefully – downsizing a hub is a very delicate proposition,” Aaron Gellman, an economics professor at Northwestern University, tells The Cincinnati Post. “I wouldn’t be surprised to see a low-cost carrier come in.” And if low-cost carriers do arrive, Delta would likely be forced to cut its Cincinnati fares to match that of its new rivals. Posted 8:30 a.m. NWA may be ready to hire replacements: Northwest and
