Breaking – Delta to Drop Memphis as Hub

Delta today reported financial and operating performance for May 2013 to the media, but also sent out a financial performance memo to employees. The memo announced that Delta would be dropping Memphis as a hub beginning this fall. It simply states that the Memphis hub is not making money and therefore Delta will be unable to honor their promise of keeping open all legacy Northwest hubs. Delta will cut the current 96 flights at MEM down to 60 per day and will also slash 230 jobs beginning September 3rd. The majority of the cuts will be on routes served by 50 seat regional jets which are currently being phased out.

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  1. It certainly didn’t take long for Delta to break their promise. The first of many, I presume. I hope the economic costs of this loss won’t be a severe as when USAirways reduced their presence in Pittsburgh. All that taxpayer money for an airport terminal that sits practically empty today. No one should be surprised by this.

    Next to go: Minneapolis or Detroit (Legacy NWA hub).

  2. It’s not surprising. MEM was bleeding. Hubs can have virtuous cycles of growth or death spirals of cuts. Without the small RJ’s, MEM went into the death spiral

  3. whoever the idiots who claimed MEM could exist as a reliever hub for ATL should seriously have their head examined

    another reason why I’m not optimistic US/AA could really keep all those flights in DCA-PHL-JFK-LGA, despite what the PR spin that comes out of Dallas claiming how each is unique and O&D heavy

  4. @Tom — Hasn’t CVG already been de-hubbed? I think they are considering tearing down an entire terminal thanks to DL.

  5. Mate….this was a fait accompli years ago…And has effectively been implemented for several years now, This is just the final announcement of something long since done. Anyone believing the “promise” of maintaining all NW hubs was naive at best.

    Next stop: DTW.

  6. Sad to see one of my favorite Delta hubs finally die. Going to miss Jim Neely’s BBQ on layovers! I thought for sure the dreaded RJ hub at CVG would die first.

  7. Why do folks think DTW is next? I’m not terribly informed about it all, but isn’t DTW the #2 hub in the Delta system, at least domestically? I don’t know how profitable DTW is vs. MSP, but if I had my choice I’d prefer flying through DTW over almost any DL hub. Though, I am not terribly familiar with SLC due to my location so I can’t comment on that one.

  8. Am I naive to think that MSP passengers would be better off without Delta as a hub given the massive price premium we pay due to the lack of competition? Are the main arguments for hubs taxes and direct flights?

  9. CVG would probably close before MSP or DTW.

    “another reason why I’m not optimistic US/AA could really keep all those flights in DCA-PHL-JFK-LGA, despite what the PR spin that comes out of Dallas claiming how each is unique and O&D heavy”
    I agree. I think AA/US downsizes JFK and LGA after the merger.

  10. I live it Memphis, and although we of course knew this was coming, it’s still really sad. Southwest is coming in, but slowly. We have had one of the highest airfare rates in the country. So maybe this will help. However, it does nothing for my obsession with collecting miles and points for aspirational trips!

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