NYTimes.com Article: Small Town U.S.A. Losing Air Service

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Small Town U.S.A. Losing Air Service

September 16, 2003
 By DAVID KOEPPEL






Planning a business trip if you live in Ottumwa, Iowa, is
not easy. The town of 25,000 people lost its only
commercial air service two years ago when the regional
carrier United Express ended its two daily flights to
Chicago.

Ottumwa has failed to lure another airline to fill the gap,
so travelers have to drive two hours to the Des Moines
airport or four hours to the one in Kansas City, Mo., to
catch a flight.

Kendig Kneen, president of Al-jon, a local heavy-equipment
manufacturer, says he and his sales staff generally make
the longer trek to Kansas City because the fares are
cheaper. United Express's pullout has put additional
burdens on his budget and his employees as well, he says.
He sometimes pays to fly customers in by charter plane, for
example, and he has moved several of his sales and
marketing staff of 16 out of Ottumwa and closer to their
respective territories, in part to save on travel costs.

"The air service in Ottumwa wasn't always dependable, but
losing it struck a crushing blow," said Mr. Kneen, 48, who
has lived in the area for 43 years. "When a customer would
ask how to get to Ottumwa, it was very advantageous to say,
'United flies right in here.' "

A lot of employers and business travelers in a lot of small
towns like Ottumwa are experiencing the same frustrations
as Mr. Kneen these days. Airlines are cutting back or even
abandoning service to small airports across the country,
forcing executives who live there to spend more time on the
road and putting a drag on the local economies.

Twenty-two airports that used to average at least one
departure a day have lost all commercial air service since
August 2001, and 101 have experienced service declines of
more than 30 percent, according to an analysis by Back
Aviation Solutions, an industry consultant group in New
Haven.

The reasons are not surprising. Since the Sept. 11
terrorists attacks, many cash-strapped airlines have been
eliminating unprofitable runs to smaller cities.

Local residents have fueled the trend by driving to larger
urban airports for cheaper flights. And as activity at
smaller airports has dwindled, so has federal financial
assistance. The Department of Transportation's Essential
Air Service Program, which provides subsidies to small
communities, for example, pulled the plug on Ottumwa's
airport in September 2001 because the per-passenger costs
exceeded the ceiling of $200. (The program, with an annual
budget of $113 million, requires a community to be more
than 70 miles away from a medium or large hub airport to
receive a subsidy.)

Richard Fraley has witnessed the trend first hand. Mr.
Fraley recalls how reliable the service was at the Four
Corners Regional Airport in Farmington, N.M., a city of
38,000, in the early 1990's, when he was an engineering
manager there for Burlington Resources. He left in 1996 for
a position at the company's Houston office, and when he
returned in 2001 as a Burlington division vice president,
he says, the service had deteriorated sharply. Since then,
things have only gotten worse. The number of daily flights
has fallen by half, to 10 from 20.

According to airport manager Richard Stein, the number of
passengers passing through the airport has slid to 38,000
last year from 95,000 in 1995. Mr. Stein said many business
travelers who once frequented Four Corners now drove the
180 miles to Albuquerque's airport.

Farmington's mayor, Bill Standley, said, "Cutting back in
air service to a small or rural community is like saying
you can't have fiber optics, it's starving the community."

"People are taking to the roads and driving long
distances," Mr Standley said. "I'm afraid of seeing an
increase in accidents."

Mr. Fraley said his frustration only increased after three
recent business connections originating in Farmington went
awry.

Each time, his Mesa Airlines flight to Houston via
Albuquerque was delayed, and so he rerouted the trip
through Denver or Phoenix on other carriers. All the
service cutbacks and delays have turned what once would
have been a commute of a few hours into a full day's
ordeal, he says, and he is thinking about switching from
commercial flying to driving on the state's new four-lane
highway or even chartering a plane.

Like many other business executives, he also turns to
Webcasts and videoconferencing whenever possible.

"We don't make travel arrangements at just the drop of a
hat anymore," he said.

Craig Walling, a recently retired power plant manager from
Farmington, tells a similar tale. A frequent flier on
America West Express to Phoenix, he said that after the
Sept. 11 attacks, the airline began cutting flights and
raising prices. He started to reduce his flying time when
the airline moved its 6 a.m. flight to midmorning.

"It messed up my whole day," Mr. Walling recalled. "Lots of
times the planes wouldn't even fly. They said it was
mechanical problems, but we suspected there just weren't
enough passengers." Mr. Stein, the airport manager, said he
was unaware of any flights that were canceled because of a
lack of passengers.

Elsewhere the refrain is much the same. In 2001, Mesa
Airlines raised the fares on nonstop flights from the
Hickory Regional airport in Hickory, N.C., to Charlotte,
N.C., while reducing their number to four from nine. Then,
in April 2002, it ended the service altogether - a decision
that the airport's development director, Duncan Cavanaugh,
described as "almost a self-fulfilling prophecy."

Mesa's departure not only complicated travel for employees
and clients of several large fiber optic companies in
Hickory, like Corning Cable Systems and Commscope, it also
hurt resorts in the area that relied on the conference and
convention trade, said Kent Tarbutton, the resort director
of Chetola Mountain Resort in Blowing Rock, N.C., about 36
miles from the Hickory airport.

"We can't compete anymore for that business," Mr. Tarbutton
said. "It's hard to court a Ford or Chrysler without air
service."

Even airports that hang on to commercial service often have
to adjust to the ebb and flow of competition - and thus of
ticket prices. After Continental Airlines began daily
flights from the San Angelo Regional Airport-Mathis Field
in San Angelo, Tex., to Houston in April 2000, ending
American Eagle's monopoly there, fares fell. But
Continental pulled out after the Sept. 11 attacks, leaving
American Eagle again as the sole player; fares then rose,
said Michael Dalby, the president of the San Angelo Chamber
of Commerce.

The price increases induced many travelers in San Angelo, a
city of 100,000 people with thriving health care and
sheep-and-goat ranching industries, to switch from flying
to driving two hours to Midland or Odessa, three hours to
San Antonio or Austin, and even seven hours to Houston.
However, Sky West Airlines yesterday began nonstop flights
to Houston. American Eagle's round-trip fare to Dallas has
fallen from $500 to below $300 since the Sky West
announcement on Aug. 7.

Dan Stultz, the chief executive of Shannon Health Systems,
a San Angelo medical center with 1,400 employees, is
pleased that the city is getting a second airline. But he
has come to accept the frequent comings and goings of
commercial carriers.

"It's just part of doing business," Mr. Stultz said. "I'm
just glad that we've had one viable airline. I'm not
bitter. I'm grateful we have flights to Dallas."

Readers are invited to send stories about business travel
experiences to businesstravel@xxxxxxxxxxxx

http://www.nytimes.com/2003/09/16/business/16smal.html?ex=1064717754&ei=1&en=037151e7631afccd


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