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PANYNJ considering lifting the LGA perimeter rule

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PANYNJ considering lifting the LGA perimeter rule

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Old Feb 26, 2015, 11:43 am
  #31  
 
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While I like the idea of removing the perimeter rule, it would be interesting to see what happens in practice. I've seen a lot of people on, for example, SFO-JFK flights connecting onward to Europe, so simply stopping SFO service at JFK and moving it all to LGA wouldn't work. Most likely Delta will end up with even more duplicated services between the two airports than they have now, which isn't all that efficient.

It may also be hard to fill up the big 757s from SFO and LAX without the international connections that JFK offers (and there aren't many domestic destinations coming from SFO and LAX where LGA is a good connecting point).

UA would make out well since their connections all happen at the SFO and LAX end, so as long as they could gather enough slots, they could close the JFK station and focus all efforts on LGA (and EWR of course).
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Old Feb 26, 2015, 11:49 am
  #32  
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Originally Posted by HDQDD
The best thing that can be done to upgrade the ATC system in NYC is to close LGA and expand JFK...Seriously.

Thankfully in this country, you can't take something someone has already purchased and then expect them to purchase it again at a higher price. Well, I suppose you could try it, but the lawsuits would fly and the airlines have a very good case.

Now, if you had said that they should be required to sell some of their slots to other airlines (at market value) I would have agreed.

DL wasn't there "first". They've negotiated to be in the position they are today. At least two other airlines have had larger dominant positions there in the past.
The problem with this is that market value might not be a meaningful concept when the owner is forced to sell. How many buyers would want all of the slots? [Note that a large set of slots can be more valuable than the sum of the values of small groups of slots.]
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Old Feb 26, 2015, 11:53 am
  #33  
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Originally Posted by bgriff
While I like the idea of removing the perimeter rule, it would be interesting to see what happens in practice. I've seen a lot of people on, for example, SFO-JFK flights connecting onward to Europe, so simply stopping SFO service at JFK and moving it all to LGA wouldn't work. Most likely Delta will end up with even more duplicated services between the two airports than they have now, which isn't all that efficient.

It may also be hard to fill up the big 757s from SFO and LAX without the international connections that JFK offers (and there aren't many domestic destinations coming from SFO and LAX where LGA is a good connecting point).

UA would make out well since their connections all happen at the SFO and LAX end, so as long as they could gather enough slots, they could close the JFK station and focus all efforts on LGA (and EWR of course).
In this scenario, what would happen with international connecting passengers using UA's *A partners such as LH/LX, SQ, etc. that still use JFK rather than EWR? Also, many high yield passengers prefer JFK over EWR, although there would also be some residents of norther NJ who prefer EWR.
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Old Feb 26, 2015, 12:01 pm
  #34  
 
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Originally Posted by MSPeconomist
In this scenario, what would happen with international connecting passengers using UA's *A partners such as LH/LX, SQ, etc. that still use JFK rather than EWR? Also, many high yield passengers prefer JFK over EWR, although there would also be some residents of norther NJ who prefer EWR.
Perhaps. This is all speculation and obviously each airline would figure out how to optimize their network.

But, generally speaking, any Star carrier that wants significant access to United's network is doing it through EWR or other hubs rather than through the 3 destinations UA serves from JFK. (Both LH and LX serve EWR, and SQ has no need for people to connect from JFK to LAX or SFO since their LAX and SFO customers would just take SQ direct to those destinations. Smaller Star carriers like SA or TK might connect some people onto UA at JFK but more likely focus on connecting points like IAD and ORD since again, UA doesn't offer much by way of connectivity out of JFK.)

And I agree some people have strong EWR/JFK preferences, which is why UA currently serves LAX and SFO from both airports. But if UA was able to move their p.s. LAX and SFO flights to LGA, they would have no more need for JFK since all of their transcon customers who prefer JFK over EWR presumably are equally as happy, or happier, to use LGA.
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Old Feb 26, 2015, 12:04 pm
  #35  
 
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Originally Posted by 3Cforme
A problem with that line of thinking is that there was no 'original' purchase of slots. They were free to a carrier which may have sold them to a carrier... (rinse, repeat) who sold them to Delta. It's not hard to make a case that slots at an airport built & maintained with public money should be a public good.
I'm not arguing the latter, I'm simply saying in the current environment airlines *have* paid/traded for the slots; regardless of what their original cost was. To simply take them away would not fly (pun intended) or would at the very least get caught up in lengthy court cases.
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Old Feb 26, 2015, 12:13 pm
  #36  
 
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Originally Posted by MSPeconomist
The problem with this is that market value might not be a meaningful concept when the owner is forced to sell.
True, but there at least should be a chance to sell before simply revoking them. It's similar to how municipalities acquire land to build/expand a road. They make offers, peeps either accept them or they make a counter offer. After some time, holdouts are handled by eminent domain.

Originally Posted by MSPeconomist
How many buyers would want all of the slots? [Note that a large set of slots can be more valuable than the sum of the values of small groups of slots.]
I would imagine there are at least a few carriers that would be interested in starting/adding services to/from LGA (especially if the perimeter rule is nixed).

The other option, is that the original airline could lease them out...

I know back in the days when I worked for JI, we had 6 slot pairs of our own and we leased 3 pairs from NW that they weren't utilizing at the time.
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Old Feb 26, 2015, 12:18 pm
  #37  
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Originally Posted by HDQDD
True, but there at least should be a chance to sell before simply revoking them. It's similar to how municipalities acquire land to build/expand a road. They make offers, peeps either accept them or they make a counter offer. After some time, holdouts are handled by eminent domain.



I would imagine there are at least a few carriers that would be interested in starting/adding services to/from LGA (especially if the perimeter rule is nixed).

The other option, is that the original airline could lease them out...

I know back in the days when I worked for JI, we had 6 slot pairs of our own and we leased 3 pairs from NW that they weren't utilizing at the time.
Being forced to attempt to lease the slots to other carriers also leads to the problem that market value can be meaningless.
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Old Feb 26, 2015, 12:30 pm
  #38  
 
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Originally Posted by pbarnette
Obviously, this would be huge for DL. In terms of impact, I'd have to think that the bulk of the SFO/LAX/SEA flights would move to LGA, likely at the expense of some of the smaller destinations, or maybe some of the LGA-Other Hub frequency. The open question would be whether that loss would be offset via either increased gauge into LGA (in the case of drawdown of LGA-Other Hub frequency) or transfer to JFK (in the case of elimination/cutback on smaller destinations. For example, DL has something like 9 flights a day to RDU and 7 a day to MSP. I'd think they could steal a slot or two from each and backfill either with bigger planes or shifting some to JFK.

I will repeat myself a bit though... If this goes through, I think they should seize all the slots and re-auction them, with the funds going to help upgrade air traffic infrastructure in the region. While they are at it, do the same for JFK and EWR. I don't think DL should be handed a gift of a dominant position at an increasingly attractive LGA simply because they were there "first".
the LGA runways are each 7000 ft. is that long enough to accommodate a fully-loaded transcon flight for an aircraft sufficiently large to make money on that route?
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Old Feb 26, 2015, 1:22 pm
  #39  
 
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Originally Posted by MSPeconomist
Are you sure that immigration and customs processing is done on board? My understanding is that everyone must deplane during the stop.
That is my understanding as well (and described by a number of Flyertalkers who have taken this flight).
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Old Feb 26, 2015, 2:13 pm
  #40  
 
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Theoretically losing the LGA perimeter could open some more of the world to smaller cities.
Feel free poke holes in my logic but here's the set up.

There are ~5 weekday LAS/JFK flights on Delta. And ~5 weekday MKE/LGA flights.
If DL can run 3 JFK/LAS flights and 2 LGA/LAS flights, it could then potentially move 2 of the MKE/LGA flights to JFK offering more service to international locations.

Not saying that some cities won't lose service or frequencies, but it could allow a better mix up those who's final destination is NYC and can go into LGA and those continuing onward to TATL destinations to JFK.
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Old Feb 26, 2015, 4:19 pm
  #41  
 
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Originally Posted by You want to go where?
That is my understanding as well (and described by a number of Flyertalkers who have taken this flight).
My mistake you guys are correct.

Just one of the reviews-

http://www.jaunted.com/story/2012/11...aby+Bus+to+JFK
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Old Feb 26, 2015, 4:46 pm
  #42  
 
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One thing I don't like about LGA is the lack of Subway service. At least with JFK and EWR, you can take a train into Manhattan without too much difficulty.
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Old Feb 26, 2015, 7:26 pm
  #43  
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Originally Posted by squatch
the LGA runways are each 7000 ft. is that long enough to accommodate a fully-loaded transcon flight for an aircraft sufficiently large to make money on that route?
DCA is 6870 ft, and there are (or have been) TCONs from there to SEA/PDX (738), LAX (738 and 757), and SFO (73G and 319)

even though I have only transited the MAT in the past few years, I think another significant issue that doesn't get a lot of visibility is the LGA landside infrastructure ... especially if several of these these longer-range flights wind up operating within about the same 30- to 45-minute windows (~730am, ~noon, ~5pm)
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Old Feb 26, 2015, 7:48 pm
  #44  
 
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Originally Posted by SJC ORD LDR
One thing I don't like about LGA is the lack of Subway service. At least with JFK and EWR, you can take a train into Manhattan without too much difficulty.
I agree, though LGA is a little better now with the Q70 Limited bus.

Actually EWR is my preferred airport from Manhattan, esp. from the West Side, due to the easy connection from Penn Station.
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Old Feb 26, 2015, 9:07 pm
  #45  
 
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Originally Posted by jrl767
DCA is 6870 ft, and there are (or have been) TCONs from there to SEA/PDX (738), LAX (738 and 757), and SFO (73G and 319)
DCA is now 7169 feet, but the point stands.
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