4 ms·
CVG's downfall wasn't so much when Delta made it a hub, but rather when after Delta's merger with Northwest the hubs were reshuffled [1][2], and CVG lost out ha
by niftich 10y ago
CVG's downfall wasn't so much when Delta made it a hub, but rather when after Delta's merger with Northwest the hubs were reshuffled [1][2], and CVG lost out hard to the gain of Detroit.
In the acquisition, Delta gained Minneapolis, Detroit, and Memphis as hubs, while previously having Atlanta, CVG, and Salt Lake City. CVG was midway between Atlanta and Detroit. Detroit is closer to Europe, slightly closer to most of the big cities on the Eastern Seaboard, and slightly closer to Minneapolis, while also having a larger local market and a hub-friendly terminal design.
Now CVG's luck turns because the same geographic attributes that made it unremarkable vs. Detroit are very handy once you're no longer in the air. Kentucky is well-positioned between the populous midwest and the few crossings of the Appalachians. It's no accident that UPS operates out of Louisville and Fedex (after Memphis) out of Indianapolis, and former DHL's, and most of Amazon's contract fleet out of Clinton County just to the east. This triangle is well-connected by trucking both for destinations near or far.
[1] http://web.archive.org/web/20150121014513/http://www.ajc.com/news/business/hub-changes-hit-cincinnati-hard/nQN3C http://web.archive.org/web/20150121014513/http://www.ajc.com...
[2] http://www.dispatch.com/content/stories/business/2009/08/09/delta_cox.ART_ART_08-09-09_D1_MJEN8D2.html http://www.dispatch.com/content/stories/business/2009/08/09/...