NYTimes.com Article: Memo Pad: Another Year of Decline in Flights Made in U.S.

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Memo Pad: Another Year of Decline in Flights Made in U.S.

December 23, 2003
 By JOE SHARKEY





Another Year of Decline

In Flights Made in U.S.

Air service continued to deteriorate this year, with some
cities showing losses of 25 percent or more in the number
of flights compared with 2001, according to a report by
Reconnecting America, a nonprofit group that supports
better links between communities and the national
transportation networks.

The study argues for "a revitalized hub-and-spoke system
incorporating rail and bus for shorter trips, or for access
to hub airports." It found that the 30 largest hub airports
- which account for two-thirds of all available seat miles
flown in the United States - had an average of 11.1 percent
fewer scheduled flights this year compared with 2001.

Air travel has picked up in recent months and airlines are
expected to increase capacity slightly in early 2004.
Low-fare airlines, for example, are rapidly adding flights
to compete with major carriers on the most lucrative
routes. But the study documented how some regions have been
harder hit than others in the cutbacks since 2001.

The three hub airports in the Washington area, as well as
hub airports in Boston, Los Angeles, Pittsburgh, San
Francisco and St. Louis, all had reductions in both flights
and available seats of 25 percent or more over that period,
according to the report (which is available at www.
reconnectingamerica.org).

Smaller hub airports were also sharply affected by
cutbacks. Atlantic City lost 37.6 percent of its flights;
Raleigh-Durham, N.C, lost 30.5 percent; and Kansas City,
Mo., lost 30.2 percent. Cities with losses of more than 20
percent included Providence, R.I.; Tallahassee, Fla.; Palm
Springs, Calif.; Portland, Ore.; Columbus, Ohio; and
Eugene, Ore.

The report calls on Congress to fill in the widening gaps
by creating a plan to integrate air transportation with
both feeder routes and alternate routes using rail and bus,
including extensive networks of intercity rail lines for
trips of 100 to 400 miles.

The report suggests using bus or rail, instead of cars, to
provide access to airports; using bus or rail to travel
from city center to city center; and using bus or rail to
substitute for the "spoke" portion of a hub-and-spoke
journey.

Delta Upgrading

Its Elite Rewards

Delta Air Lines is making major changes in its SkyMiles
Medallion elite program next year to enhance the rewards
for Medallion members who have been using higher fares to
accrue status credit since the program was initially
modified last year.

Starting Jan. 1, Medallion members will be eligible for
unlimited upgrades when flying on any published fare.
Upgrades will also be processed automatically so that
members can verify them online, Delta said. In addition,
companions flying with Medallion members will be eligible
for free upgrades on most fares.

Last year, Delta rattled many of its frequent fliers when
it revamped its Medallion elite-status program to give more
per-mile credit to those flying on higher fares and less
per-mile credit for those flying on cheaper discount fares.
Despite predictions that many members would flee, "by the
end of this year we will have more Medallion members than
we had last year," said Patrice Miles, the airline's vice
president for consumer marketing.

Medallion members "committed to Delta this year and worked
hard to earn their elite status," Ms. Miles added. The
changes, she said, will make it far easier for them to
upgrade from coach to first class (when first-class seats
are available), and to keep track of those upgrades.

Delta said it would also award mileage-credit bonuses to
Medallion members flying short routes. In the past, a
passenger got credit for 500 miles on flights of 500 miles
or less. Next year, that changes to credit of 750 miles for
trips under 500 miles for most fares, Delta said.

Frontier Is Planning

Los Angeles Mini-Hub

Continuing
its challenges to both UAL's United Airlines and Southwest
Airlines in the West and Midwest, Frontier Airlines said it
would establish a mini-hub at Los Angeles International
Airport and begin service to St. Louis; Kansas City, Mo.;
and Minneapolis from Los Angeles in April. The changes will
be Frontier's first expansion of point-to-point routes
outside of Denver International Airport.

"We have focused on the growth of our hub in Denver for the
past 10 years,'' said Sean Menke, Frontier's senior vice
president for marketing, "and we feel comfortable that we
are now at a point that we can begin to fully leverage and
utilize that asset as we begin to offer nonstop service
outside of Denver to complement our hub schedule."JOE
SHARKEY

http://www.nytimes.com/2003/12/23/business/23memo.html?ex=1073187874&ei=1&en=134bb1ba4c80763f


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