Chapter 1893： Encounter Airport COO

Charles admitted that he wanted to be biased, and that human nature is like this.

Yang Cheng warned again, "If you want to make money in Country Z, you must lower your stance, otherwise you will only have to fail in the end."

"I got it~"

Originally planned to stay in Charleston for another two days, but suddenly received a call from Janssen and asked him to return to New York as soon as possible. He had no choice but to part with Luo Yue at the airport. He sent the plane to Luo Yue, and he reached the Delta flight back. new York.

It’s been a long time since he took a public flight, and for a while, he was a little uncomfortable. The first class of domestic short-haul flights was no different from ordinary business class, but he was warmly welcomed by the entire crew when he boarded the plane.

The major shareholder and the boss take their flight, which is the honor of the entire crew.

Yang Chengquan had inspected the business, and he cordially greeted the crew, and sat down honestly and waited for takeoff.

Passengers who boarded in advance did not know that there was a big man on the same flight. Yang Cheng deliberately waited until the economy class passengers had boarded before boarding.

It's a pity that American Airlines' flight attendants are basically at the level of aunts. Guests like Yang Cheng will naturally have to be served by the flight attendants in person, otherwise it is impossible to guarantee that there will be no affair.

Because Yang Cheng was on the plane, Delta Air Lines specifically communicated with the tower to request priority release. Otherwise, they would wait in line. Didn't you see that there were more than a dozen flights waiting for release?

While the plane was taxiing, the flight attendant's aunt came over to help collect the water cup, and at the same time bowed her head and said, "Mr. Yang, there is a Delta Air Lines senior member behind knows that you are on the plane and asks to meet you~"

Yang Cheng frowned slightly, just about to refuse, the aunt added, "It's Tyrell, the operating officer of Philadelphia Airport~"

It turns out that the background is not small, anyway I am idle, so let’s talk, "Let him come over~"

Turning his head to talk to Hansen, "Let me change seats with this Mr. Tyrell~"

The chief operating officer of Philadelphia International Airport suddenly finds himself, what can he do? Is it a self-recommendation?

Yang Cheng thought in her heart while waiting for someone.

"Mr. Yang~"

When I was thinking about it, I heard someone say hello, turned his face and looked, good guy, a typical case of a gentle scum, white people, and nothing else, a gold-framed glasses is a testament to his lack of QGZ beautiful stewardess.

"Take Mr. Tyrell, it's about to take off~" Yang Cheng said, pointing to the seat next to her.

When someone sat down, Yang Cheng asked, "What does Mr. Tyrell have to say?"

"There are indeed some things I want to discuss with Mr. Yang. I think this encounter on the plane was arranged by God~"

Yang Cheng waved her hand, "Tell me the matter, Mr. Tyrell~"

He didn't want to discuss the origin of God with foreigners.

This is also in line with Tyrael's intentions. There are too many things to say about the two-hour flight in total, and every second must be counted. "Mr. Yang should have a good grasp of the situation in the US airports today?"

Yang Cheng said vaguely, "What do you mean?"

"The wave of mergers sweeping the U.S. aviation industry has significantly reduced competition at many major U.S. airports, but travelers are paying for it because they are paying higher ticket prices and fees.

In the past decade, through mergers and acquisitions of large airline companies, the number of nine major airline companies in the United States has been reduced to four-American Airlines, United Airlines, Delta Airlines and Southwest Airlines.

As a result, travelers find that their home airport is increasingly being dominated by one or two airlines.

During the same period, domestic air ticket prices in the United States rose faster than inflation. I think a dominant factor is the decline in competitive pressure.

The competition between airlines is not as fierce as in the past, because they all have their own territory and rarely compete with the other party.

Measured by the number of seats available for sale, among the 100 largest airports in the United States, 40 airports are controlled by a single airline. This number exceeds the 34 airports ten years ago.

According to my analysis of airline flight time tracking data, 93 of the top 100 airports in the United States are controlled by one or two airlines, which is higher than the original 78 airports. .

The birth of Denver International Airport is an exception. At Denver International Airport, United Airlines' market share has dropped from 56% to 41%, and airfare prices are almost 15% lower than other places in the United States.

Overall, in the past decade, domestic airfare prices in the United States have risen 5% after adjusting for inflation.

This does not include the $25 checked baggage fee and other additional fees that many travelers are now paying.

Of course, there are other factors contributing to the increase in air ticket prices, such as economic growth, increased average flight distances, and, for most of the past few years, fuel prices have been at the highest levels in history. Of course, this year’s fuel prices have made passengers feel bad. The burden has been reduced a lot, and I think this is the beginning of the next wave of competition among airline companies. "

When Tyrael said this, the plane was already rolling, and the air pressure created by the strong push back was pressing on the eardrum.

Yang Cheng did not interfere in the unexpected world. He was thinking about Tyrell. Now the benefits of the airline merger strategy are showing. In the past few years, the US airline company's profit has reached a record 20 billion US dollars, even though air travel has only moderately increased. .

However, the increase in air ticket prices precisely reflects the increase in travel demand, not just caused by the merger of airlines. Airlines have used the newly increased profits to purchase new aircraft and update airport facilities.

This is also a very important part of improving the travel experience of passengers. He believes that Tyrell said that the increase in ticket prices brought about by the merger of airlines and enterprises is damaging the interests of passengers.

Besides, as an operating officer of a large airport, shouldn't you consider issues from the perspective of the airport?

We must know that the number of flights at each hub airport has increased, and the airport will expand accordingly. This is good news, but what does Tyrael mean in his words, is not optimistic about the impact of the merger of airline companies?

Moreover, compared with the four major airlines now controlling 95% of the aviation market, before the United States lifted air traffic control in 1978, passengers once faced fewer choices and higher ticket prices for checks.

At that time, which airline flew to which city and how much it could charge were all controlled by the US ZF.

In the 1980s, competition among airlines intensified. As new airlines entered the market, ticket prices dropped sharply.

After 9/11 and the economic recession that followed, major US airline companies fell into financial chaos. Several airline companies reorganized through bankruptcy. A wave of airline mergers that began in 2008 led to Delta, Northwest Airlines, United Airlines and Continental Airlines, Southwest Airlines and Transit Airlines, and the merger of American Airlines and American Airlines.

Relevant anti-monopoly regulatory agencies approved the merger of these airline companies, but forced some airline companies to abandon their flight slots at major airports in an attempt to encourage competition.

However, the airlines are not stupid. Everyone has reached a tacit understanding. Although some people encourage competition, the current situation of competition is far less fierce than in the past. If you can cooperate to make money, why should we engage in competition?

Consolidating their respective sites is the main task of current large airlines. They insist on their strategy of dominating one airport and giving up service at the edge of other airports.

For example, United Airlines abandoned JFK Airport and transferred its dwindling JFK Airport flights to Newark Airport in New Jersey, and United Airlines now controls 68% of the seats at Newark Airport.

At the same time, if the regulator agrees, Delta will further reduce the number of its flights at Newark Airport and take over United Airlines' original JFK airport share. Delta currently has the largest market share in JFK Airport.

This is the tacit understanding between aviation companies!

The mergers and acquisitions of airline companies have changed the competitive environment and the average air ticket prices of large and small airports.

At Indianapolis Airport, where two leading airlines controlled 37% of seats a decade ago, domestic airfare prices there were 9% lower than the US national average.

Later, ATA Airlines of Indianapolis went bankrupt and was acquired by Southwest Airlines. Its other airline, Northwest Airlines, was also absorbed and merged by Delta.

Currently, Southwest Airlines and Delta Air Lines control 56% of the seats at Indianapolis Airport, where ticket prices are 6% higher than the national average.

In 2005, there were 10 airlines serving Dayton Airport in Ohio, where the ticket price was 5% lower than the US average. Today, only four airlines have flights to Dayton Airport and the ticket price is also higher than the US average The level is nearly 10% higher.

Large hub airports are no exception. In 2005, American Airlines controlled nearly 66% of the seats at Philadelphia Airport. Now, American Airlines has merged with American Airlines. The combined American Airlines controls 77% of the seats at Philadelphia Airport. It was 4% below average and rose to 10% higher.

During the same period, Delta's market share in Atlanta, the world's busiest airport, also increased, and the number of seats it controlled rose from 78% to more than 80%.

At the same time, the low-cost airline Cross Airlines merged with Southwest Airlines, reducing the number of flights at Atlanta Airport. Domestic airfare prices at Atlanta Airport rose from almost 6% lower than average to 11% higher.

All in all, no matter from the perspective of airlines or airports, the synergistic benefits brought by rising prices are unquestionable. Yang Cheng really doesn't understand why Tyrael feels that making money is a bad thing?

He asked Tyrrell, "Do you think the monopoly of the airport by a single airline is a kind of harm to the airport?"

Tyrael truthfully said, "No from an interest perspective, but from an operational perspective, yes!"

This is like a human saying, "So what you are actually worried about is that your operating power is restricted? Or, you are worried that one day in the future, American Airlines will suddenly go bankrupt, which will affect the operation of Philadelphia Airport?"

Tyrael hesitated for a moment, and nodded, "With this factor, only competition can promote development. The final result of a dominant family is a pool of stagnant water. Even if the water once bottomed out, it will become a quagmire in the end. !"

txt download address:

phone-reading: