Battle : As the majors gear up to renew their battle in Boston, the industry wonders if this type of market is one in which an outright victory is possible.(Delta, United, American fight for market share in Boston, Massachusetts)(Statistical Data Included)

Publication: Airline Business

Publication Date: 04-JUN-01

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COPYRIGHT 2001 Reed Business Information Ltd.

Boston cherishes its history as the site of some of the Revolutionary War's most important skirmishes, notably including the Battle of Bunker Hill and the Boston Tea Party. Today, with a population of 5.8 million and 27.4 million air passengers a year, Boston is the battleground for a campaign being waged by the USA's largest airlines, with the end goal being market leadership.

With the city's large financial services and hi-tech industries generating substantial business traffic, as well as significant demand for leisure service, the self-styled (if ironically in this case) "Hub City" is a vital market for the nation's three largest air carriers - United, American and Delta Air Lines, as well as US Airways. Recently the three duelling majors have all made ambitious strides toward being the largest carrier in this lucrative air service market, adding new routes, building new facilities and buying new affiliates. Which carrier is likely to win this high-stakes battle and how wise a strategy is it to pursue supremacy in Boston to begin?

The combatants

American, considered the city's leading carrier, was the first airline to raise the Boston stakes in earnest, when it bought long-time Delta regional affiliate Business Express in 1999. By securing the largest source of feeder traffic in the New England region, American has been able to support 74% capacity growth and increase the number of destinations served at Logan Airport from 10 to 39 - including regional service - over the last five years (see table on page 87). Other moves by the Dallas-based major include a $270 million project to double the floor-size of its currently cramped base at Terminal B, to include four new jet gates and customs and immigration facilities to handle three concurrent international arrivals. At present, as with all carriers, American's international arrivals are processed at Terminal E. On the service front, American has stood up with such aggressive moves launching...

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