Northwest Airlink pulling out of Joplin, MO. (JLN)

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Single carrier to serve Joplin Airport manager says Northwest's defection
based on national losses...
Joplin Regional Airport Manager Steve Stockam said he believes Northwest
Airlink's local operation was profitable, and that its decision to withdraw
from the city has more to do with the fact the company is losing $2 million
a day nationally.
Northwest Airlink, saying it was losing money by operating out of Joplin,
announced Thursday it will discontinue service to the city, possibly as
early as next month.
Those who already have tickets are being asked to call Northwest
reservations at (800) 225-2525 to discuss refunds or make alternative
arrangements.
"We have filed notice with the (U.S.) Department of Transportation of our
intent to cease operations in Joplin," said Phil Reed, vice president of
marketing for the commuter airline, which is part of Northwest Airlines.
The airline offers two daily nonstop flights from Joplin to its Memphis hub
on Saab 340 aircraft, each with a capacity for 33 passengers.
"The market is no longer commercially viable," Reed said. "Revenues are not
keeping up with expenses."
Stockam disagreed.
"Joplin has historically been a very profitable station for Northwest," he
said. "They are up (in passengers) to where they were last year at this
time, which is about 30 percent above normal. They've rebounded very, very
well.
"I think the market is viable here. We just need to find somebody who is
wanting to serve the market. I truly, truly believe that this decision is
not based upon Joplin. It is not based on the market here. This is a
corporate decision."
He said the aircraft that have served Joplin are not being deployed to
another city but are being taken out of service. "In other words, they're
contracting their operation. They're getting rid of airplanes," he said.
Describing airline seats as "perishable," Reed said many are sold at
discounted prices at the last minute, so even when the planes leaving Joplin
are full, the airline is still losing money.
He cited the Sept. 11 tragedy and its impact on airlines, and said that many
people have a perception that flying is difficult and inconvenient.
Northwest offered three flights out of Joplin until the terrorist attacks.
Reed also said business travel is down, but Stockam said business travel out
of Joplin has returned to pre-Sept. 11 levels.
Reed said the airline has been watching the Joplin area closely this summer,
a peak travel period, but has not seen anything that indicates an
improvement. He said the airline could cease operating in Joplin as early as
Aug. 11, if the Department of Transportation approves.
"Traditionally, we ask for a 90-day notice," Reed said. "In this instance,
we have asked that the 90-day notice be waived."
He said the airline next month will enter a period of slow travel, with
school starting and vacations ending.
"September to November is the lowest level of revenue per year," he said.
"During that time frame we would do nothing, in our opinion, but continue to
sustain incremental losses."
Reed said Northwest Airlink is wrestling with the same problem in some of
its other markets, but Joplin is the only one in which the company plans to
discontinue all service.
"We are in the middle of four other major airports. They are all within
driving distance," said Steve Plagmann, director of agent support services
for Great Southern Travel. "Lots of other cities the size of Joplin are
having the same problems if they are within driving distance of a major
airport. It's not an isolated situation."
Northwest also offers flights out of Springfield and the Northwest Arkansas
Regional Airport to Memphis. Reed speculated that the opening of the
Arkansas airport in late 1998 may have had an impact on travel out of
Joplin, although he had no specific numbers.
"There has been some of what we call leakage into that region," he said.
The Joplin airport also is served by American Connection, which formerly was
Trans World Express until American Airlines and Trans World Airlines merged
last year. That airline offers four daily flights to St. Louis, including
one added last spring.
Bill Mishk, vice president of marketing for American, said his company
intends to stay in Joplin.
"While I wouldn't say the fourth flight is full, we are pleased with the
level of support," he said. "In light of the Northwest decision, we are
going to review the traffic levels and see what opportunities exist."
Joplin also was served for a short time by the new start-up Ozark Air Lines,
which discontinued service last spring and later sold.
"We need people to continue to support the airport if we want to keep the
services we do have," Plagmann said.

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