This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A Black Eye for Cleveland?

Stocks in this article: UAL AAL

NEW YORK (TheStreet) -- On Feb. 1, United Airlines (UAL) announced that it will demote Cleveland from a United hub to a mere spoke.

As United CEO Jeff Smisek wrote in his announcement, "Our hub in Cleveland hasn't been profitable for over a decade, and has generated tens of millions of dollars of annual losses in recent years. We simply cannot continue to bear these losses."

But is it also a major loss for the city of Cleveland? It could hurt the arts. What if it squeezes the middle class?

Cleveland has endured a long list of indignities: a precipitous decline in population, the closure of much of its heavy industry, the infamous fire on the Cuyahoga River. Both the city and its former baseball and football stadium have been nicknamed "the Mistake on the Lake." LeBron James broke its heart with "the Decision" to start playing for Miami's basketball team. Its most popular tourist talking point is its "Hastily Made Tourism Video."

And now, it is no longer a United hub.

Clevelanders saw this day coming when United and Continental merged in 2010. Cleveland was the Continental Midwest hub, and Chicago was the United hub. It doesn't come as a shock that Chicago won out.

The Plain Dealer described the change as "a psychological blow to Cleveland, a city whose tough attitude masks an often-shaky self-image."

More than that, it will eliminate nearly 500 jobs: 430 airport operations jobs and 40 catering jobs, by Smisek's count.

Cleveland is the latest in a list of Midwestern cities that have seen their airline hub status eliminated. In an interview, TheStreet's Ted Reed ticked off a list of former hubs in the region: Dayton, Indianapolis, Pittsburgh, Columbus, St. Louis. Now Cleveland. The airline industry has contracted substantially over the past couple of decades, Reed said. All of these smaller city hubs have shuttered, and Charlotte is one of the only smaller hubs standing.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs