Midway rules bigger share of Chicago sky

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Midway rules bigger share of Chicago sky
By Marilyn Adams, USA TODAY

CHICAGO =97 There's trouble at mighty O'Hare International Airport, one of=
=20
the world's busiest. Anchor United Airlines is fighting for its life in=20
bankruptcy court, and No. 2 carrier American Airlines narrowly avoided a=20
Chapter 11 filing last week. Just 35 miles south is another airfield where=
=20
business is growing, and fortunes are good. Little Midway Airport sits on a=
=20
postage stamp of land amid working-class neighborhoods on Chicago's=20
southwest side. As Chicago's home to relatively healthy, low-cost airlines,=
=20
it's a symbol of much of what's wrong with the big, high-cost, full-service=
=20
airlines at O'Hare. Midway's anchor airlines are Southwest and ATA, and=20
discounters AirTran and Frontier also fly there. The airport occupies just=
=20
a little more than a square mile of land, and its two runways =97 short by=
=20
today's standards =97 cross, so that only one can be used at a time. O'Hare=
=20
has seven runways and one more on the drawing board. But several years into=
=20
a stunning renovation, Midway now accounts for 22% of all domestic flight=20
departures from Chicago, up from 14% in 1997. And while most airlines have=
=20
cut flights since the terrorist attacks, domestic departures from Midway=20
have grown 16% since 2001, according to a USA TODAY analysis of OAG data=20
from Back Aviation Solutions. Domestic departures from O'Hare have dropped=
 4%.

"The more attractive business traffic goes to O'Hare because it's the=20
epicenter of the metropolitan area," says former Chicago airports official=
=20
Jay Franke, now assistant director of Northwestern University's=20
Transportation Center. "But in the markets where it competes, Midway=20
disciplines fares in Chicago. Midway Airport is the Kmart of aviation." As=
=20
the Midway carriers grow, United and American fight back with select,=20
specially priced flights from O'Hare. For example, a weekday round trip=20
between O'Hare and Miami, both American hubs, starts at $600 in coach. But=
=20
at certain times of day =97 when Southwest flies non-stops between Midway=
 and=20
Fort Lauderdale =97 American offers that trip for $270. The impact of Midway=
=20
and the discount airlines there is even more profound. Aside from Dallas'=20
Love Field, home of discount giant Southwest Airlines, Midway is now the=20
USA's big-city airport most dominated by low-fare airlines: 88% of Midway's=
=20
flights are operated by discount carriers, OAG data show. At Phoenix, a=20
much busier airport and a major vacation spot, 81% of flights are run by=20
discount carriers; at Las Vegas, 66%. Midway is the low-priced backdoor to=
=20
one of the nation's most lucrative travel markets.

United feels so threatened by low-fare airlines like Southwest, ATA and=20
Frontier that it wants to launch a separately branded, low-fare airline as=
=20
part of its reorganization plan. The carrier would serve its hub airports,=
=20
including O'Hare. The plan is controversial with United's creditors and=20
unions and many on Wall Street, but the airline insists it's key to its=20
survival. Midway's growth and growing popularity among budget-minded=20
business travelers has been enabled by a $791 million modernization and=20
expansion project financed by the airlines and municipal bonds. The project=
=20
replaced Midway's aging terminal and gates, moved a busy street almost half=
=20
a mile to the east and added a parking garage. It all was accomplished=20
while Midway operated at full capacity.
When the project is done in 2004, Midway will have 43 gates, up from 29.=20
Today it's an airy airport whose brick walls and ethnic restaurants reflect=
=20
the Chicago outside. Closer to the city's "Loop" business district than is=
=20
O'Hare, Midway is served by an elevated train that costs $1.50 each way.=20
"Passengers have more choice, both in destination and price," says Chicago=
=20
Aviation Commissioner Tom Walker. "Travelers have the best of both worlds."=
=20
But Midway Airport could have become a ghost town during the first Gulf=20
War, when the original Midway Airlines =97 named for the airport =97 quit=20
flying in November 1991. Opened in the late 1920s, the airport's terminal=20
and gates were old and cramped, parking was limited, and there was only one=
=20
restaurant. Its claim to fame was that it had been the world's busiest=20
airport =97 in 1959.

"It was a period piece," Southwest Airlines CEO Jim Parker jokes, "a great=
=20
'30s and '40s-style airport that hadn't been renovated." But it was also a=
=20
gateway to Chicago, and Southwest craved more than the four gates it had=20
there. So the day Midway shut down, Parker and other Southwest executives=20
hopped a plane to Chicago and were in the mayor's office the next morning,=
=20
pressing their case for more gates and a better Midway. By that afternoon,=
=20
the city held a press conference to announce Southwest's new commitment to=
=20
Midway. In 1996, the city began the expansion project. Even with the=20
improvements, airlines' cost per flight at Midway is about half what it is=
=20
at O'Hare, ATA officials say. Thirty-year-old ATA, whose main hub is=20
Midway, is Chicago's No. 3 airline in terms of passengers. In addition to=20
leisure fliers, ATA is targeting budget-minded business travelers with its=
=20
routes, advertising and assigned seating. Since April 2000, ATA and=20
Southwest have begun non-stop service from Midway to several important=20
business and leisure destinations once served non-stop only from O'Hare,=20
including Boston, Charlotte, Miami, Oakland and Seattle. ATA also flies to=
=20
Mexico and San Juan, Puerto Rico; Southwest serves U.S. airports.
"Midway will never replace O'Hare," Parker says, "but it's very significant=
=20
to the economic future of Chicago." Says ATA Vice President Dave=20
Aschenbach, "I can't think of another city with such a contrast in=
 airports."


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