Airlines abandon small cities

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



Airlines abandon small cities
By Barbara De Lollis and Barbara Hansen, USA TODAY

Since the Sept. 11 attacks, Youngstown-Warren Regional Airport in Ohio has=
=20
become a ghost town. In the past year, the airport that serves this former=
=20
steel town in northeastern Ohio went from handling 4,000 commercial airline=
=20
passengers a month to none. Regional carriers for US Airways and Northwest=
=20
left the market. In the two years before the attacks, Continental Express=20
had flown away, and United Express had shut down. Northwest's exit last=20
month was especially tough, casting a cloud over an airport that had just=20
been overhauled. In the last five years, $50 million in federal money has=20
been spent to double the size of its terminal, triple the number of=20
passenger gates and expand the runway for wide-body jets. The airport even=
=20
got a highway interchange. But airlines are more interested in survival=20
than money-losing markets, and Youngstown was costing Northwest $100,000 a=
=20
month after the attacks.

Under enormous pressure to cut costs, the nation's major airlines are=20
retreating from airports in small and midsize cities that are mostly served=
=20
by turboprop planes. Nine other small airports across the USA have lost all=
=20
commercial airline service since Sept. 11 of last year, a USA TODAY=20
analysis shows. Service in about a dozen other communities has been cut by=
=20
at least 50%. Scores more are vulnerable. The smallest half of the nation's=
=20
airports are hard hit, because some travelers are driving instead of flying=
=20
on shorter trips, and others are choosing to drive farther to reach an=20
airport served by Southwest or another low-fare carrier. For more than 200=
=20
of the smallest airports in the continental USA, domestic scheduled flights=
=20
this month are down 17% from what had been scheduled for last October=20
(before Sept. 11), compared with a 10% drop at the rest of the nation's=20
airports, according to the analysis of Official Airline Guide schedules=20
provided by Back Aviation Solutions.

Many small airports, such as Las Cruces, N.M., had already begun to lose=20
service: In the past five years, flights at these airports have dropped=20
about 30%, the analysis shows. Some of the smallest airports were only able=
=20
to keep planes coming mainly because of federal subsidies. The situation is=
=20
likely to worsen. Airlines are retiring more turboprops and laying off more=
=20
workers. There is mounting pressure in Washington to revamp the subsidy=20
program and possibly eliminate incentives at airports where a larger=20
airport is within about an hour's drive. A community now can get subsidies=
=20
if it is more than 70 miles away from a medium or large hub airport and if=
=20
the service costs less than $200 per passenger. Nearly 200 smaller airports=
=20
are served by a single carrier, posing more risk if that carrier makes=20
deeper cuts, aviation consultants say. Still, Youngstown residents are=20
luckier than some. They can drive to three airports =97 Pittsburgh,=
 Cleveland=20
or Akron-Canton, Ohio =97 within about an hour and a half.
"You could say, 'What's so bad about that?' " says sales executive Stewart=
=20
Yang. "But if you're catching a 6:30 a.m. flight and  you have a 1 =BD-hour=
=20
drive and you have to be there 1 =BD hours beforehand, suddenly you're=20
leaving at 3 a.m."

Among other small cities that have lost all commercial service:
=B7       Ruidoso, N.M. After the Sept. 11 attacks, only about 20 people=
 were=20
flying every month out of this resort community in the southern Rocky=20
Mountains. Rio Grande Air, a small Taos-based airline that flies nine-seat=
=20
single-engine turboprops, stopped serving the town last month. Despite a=20
subsidy, it was losing $30,000 a month.  "After 9/11, boardings just=20
dropped off," says Rio Grande Air CEO Timothy Wooldridge. Area residents=20
now drive nearly 3 1/2 hours to Albuquerque or 2 1/2 hours to El Paso.=20
Skiers who come from as far as Dallas and Houston, 700 to 800 miles away,=20
still prefer to drive. When Roy Parker, general manager of a ski resort in=
=20
Ruidoso, travels, he flies his own plane to Albuquerque, then catches a=20
flight. "The fares are so cheap," he says. "This weekend, I'm going to=20
Lexington, Ky., and the ticket was only $200."

=B7       Ottumwa, Iowa. A year ago, Great Lakes Aviation, then a United=20
Express carrier, pulled out of this southeastern Iowa city of 25,000,=20
citing rising operating costs and more service in Des Moines. It was=20
Ottumwa's sole commercial airline. Today, Ottumwans must drive about 1 =BD=
 to=20
four hours to catch a flight from Des Moines, Omaha or Kansas City.  Joy=20
Johnston, executive director of a local business development group, says=20
air service is key to her city's ability to recruit and retain businesses=20
such as food processor Cargill and farm equipment manufacturer Deere.=20
"While we have some great assets here, we also have this as a liability,"=20
she says.

=B7       Hickory and Southern Pines, N.C. Mesa Airlines, a US Airways=20
regional carrier, pulled out of these towns after Sept. 11, having already=
=20
been losing money for months.  Local officials are trying to find a=20
replacement. Hickory, known for its furniture companies and mountain=20
resorts, also has two large fiber-optic cable companies and a growing=20
number of retirees. It's a 1 1/2-hour drive from Greensboro and about an=20
hour from Charlotte. The Pinehurst/Southern Pines area, a golfing mecca and=
=20
retirement haven, is about an hour's drive from Raleigh/Durham. Golfers are=
=20
increasingly hiring private jets to fly directly into Southern Pines.

A lingering problem
Sept. 11 exacerbated the situation, but small cities have had trouble=20
keeping air service for years. The challenge started when Congress=20
deregulated the airline industry in 1978. As a safety net, Congress=20
established the Essential Air Service program, which subsidizes air service=
=20
to 114 smaller communities, the most in its history. The subsidies were=20
supposed to expire in 10 years, but Congress kept them. The Bush=20
administration is expected to propose changes to the subsidy program, which=
=20
the General Accounting Office says is increasingly hard to make viable.=20
After Sept. 11, Congress nearly doubled its budget to $113 million in=20
anticipation of growing demand. But the investigative arm of Congress says=
=20
costs at these airports have been going up and ridership dropping for at=20
least seven years.

"Either Congress needs to provide substantially more funds or look at some=
=20
options to streamline the program so that it provides service where it's=20
going to be used," says JayEtta Hecker, a GAO director who overseas=20
transportation issues. "Passengers don't say, 'Oh, I'd much rather fly from=
=20
my local community.' They say, 'It costs me three times as much!' The=20
preference is far more driven by lower cost and more service options than=20
can possibly be supported by a local community." Plus, regional carriers=20
are retiring their 19-seat turboprops =97 long considered the cheapest way=
 to=20
serve routes under about 350 miles =97 and buying small jets, which have=
 more=20
seats, can fly longer routes and are preferred by passengers. The jets=20
don't make economic sense in some smaller markets, though, airline=20
executives say. Northwest still relies on 70 turboprops to serve its many=20
smaller communities, but this year, the airline's turboprop flights will be=
=20
down 15%, while regional jet flying will be up 25%.

"There's going to come a day when either your city is going to make the cut=
=20
and be large enough to support jet service, or the city may lose service=20
altogether," says Jim Cron, a Northwest vice president. Turboprops have=20
been falling out of favor with manufacturers and carriers alike. Three=20
manufacturers make them for commercial airlines, compared with at least=20
eight makers five years ago. Bombardier, for example, delivered just three=
=20
turboprops in the first nine months of this year compared with 11 in the=20
same period last year. Horizon Air, Alaska Airline's regional affiliate=20
that serves many smaller cities in the western USA, is the nation's only=20
carrier taking delivery of new turboprops =97 but those are larger 70-seat=
=20
models from Bombardier that fly farther and faster. Airline executives say=
=20
the government pushed them away from turboprops by subjecting them to the=20
same safety regulations as those of a wide-body jet. Mesa CEO Jonathan=20
Ornstein, who lobbied against the regulations at the time, says Mesa has=20
shed almost 80 turboprops because of the higher costs. "We had 13 airplanes=
=20
in our Albuquerque operation. Now, we have five. There's no more service to=
=20
Taos. Las Cruces? No more service. We're exiting Gallup, N.M.," says=20
Ornstein. "The costs went up, fares went up, and people started driving.=20
But what can we do?"




The owner of Roger's Trinbago Site:
Roj (Roger James)
***************************************************
escape email mailto:ejames@escape.ca
Trinbago site: http://www.tntisland.com
CBC Website
http://www.tntisland.com/caribbeanbrassconnection/
The Trinbago Site of the Week:
(I95.5FM) http://www.i955fm.com
(Radio Station I95.5FM)
courtesy of Roj Trinbago Website & TnT Web Directory
Roj's Trinbago Website: http://www.tntisland.com
TnT Web Directory: http://search.co.tt
*********************************************************

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]