Just as those wild duck hunters vigorously chase their prey, Delta Airlines continues to prove they are just as dedicated to succeeding at any cost and this week we saw the latest move…again directed at Frontier Airlines.
When Frontier Airlines announced in January that they were initiating service to Cincinnati, the reaction was one of tempered excitement. Yes, having a low cost carrier come to CVG was great news, as it has been more than 13 years since the last low cost carrier swept into the airport, but Frontier was bringing in just one flight a day to Denver. A lot of headlines and all for just one flight a day.
Given the backdrop of history, it’s hard to get overly excited about one flight a day, when the airport has lost more than 500 daily departures over the last few years. As a fortress for Delta, it has been virtually impossible for any low cost carrier to profit from flying at CVG and that reduced competition is one of the main reasons passengers also have been forced to endure some of the highest fares of anywhere in the country.
When Frontier announced their plans to initiate service to CVG, Delta quickly lowered their fares in competing markets. In the past, this practice has helped to run carriers like Air Tran, Vanguard and others out of town as travelers quickly jumped on Delta flights with lowered air fares, primarily as a way to acquire much sought-after frequent flier miles. Unfortunately by doing so, the airline responsible for the lower fares is left with a plane more than half empty. In an era where planes need to be more than 80% full to generate consistent profits, operating flights with such a low load factor forces the airline involved to quickly amend their service. In short, when passengers choose to fly Delta at CVG, they are inviting the low cost carrier who is responsible for the lower air fares to leave. Of course when that happens, Delta (in typical business fashion) raises fares to the level they were at before the low cost carrier arrived in town.
This week Delta announced they were changing the inbound arrival times of three flights, all from western cities and all from cities where Frontier has an impressive presence. Coupled with the lowered air fares, this continuing pressure on Frontier is designed to cause the airline to leave the CVG market as quickly as possible.
But why all of the worry over just one flight? Given the operation at CVG for Delta, surely a single flight offered by a much smaller competitor would not be cause for worry. Yet, Delta continues to adjust their fares and schedule in direct ways to counter Frontier’s published schedule and there are more changes to come.
The reason Delta is employing a full court pressure here is that much is riding on the next 6 months at CVG. If Delta can create enough pressure on Frontier to draw passengers away from them, the low cost carrier will be gone within the next 12 months and the subsequent reaction will show other low cost carriers that bringing service to CVG is (as it has been so many times before) a bad idea.
The last thing Delta wants is for Frontier to succeed with their one flight to Denver, as they may quickly add one or two more flights. That success could attract the likes of Jet Blue, offering low cost service to the northeast (which would not compete directly with Frontier).
Low cost carrier success at CVG could also attract Spirit Airlines, who could then offer low cost service to Florida, the Bahamas and Caribbean – through their HUB in FT. Lauderdale. Three low cost carriers serving different parts of the country, not in direct competition with each other and all creating major headaches for Delta Airlines.
If Frontier succeeds at CVG, other low cost carriers will soon follow. If not, Frontier will leave and we won’t see another low cost carrier initiate service from CVG for another decade…all the while we will continue to suffer from the highest air fares in the country.
To say CVG is at a crossroad would be correct. If Frontier can succeed through the summer and fall, our chances improve significantly. If not, the reality of no direct (low cost) competition with Delta will be with us for years to come.
I like Frontier’s chances because I am seeing infuriated passengers voting for low fares by buying tickets on Frontier, so we are off to a good start. However, don’t make the mistake of ruling out Delta Air Lines – they will protect their turf at CVG with every maneuver they can use. I am also sobered by the fact that those boys from Monroe, Louisiana know how to fight.
While the duck-crazed Robertson family has produced their TV show from Monroe since 2012, Delta first began flying passengers from Monroe, Louisiana 84 years ago in 1929.
Hang on, it gets wild from here!






