NYTimes.com Article: Fears of Isolation as US Airways Cuts Flights

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Fears of Isolation as US Airways Cuts Flights

August 13, 2004
 By MICHELINE MAYNARD





Known for its splendid setting at the head of Cayuga Lake,
for its frequent appearances on "best places to live''
lists and for the Cornell University campus perched on the
hill above, Ithaca, N.Y., is also a community with an
Achilles' heel: it is becoming harder to fly there.

As recently as 1997, five airlines served the city's
pristine jewel box of an airport, Tompkins Regional. Now
there is just one, US Airways, and it may not be there much
longer.

On Thursday, the airline delivered some bad news that
Ithacans had been bracing for. Come November, the airline
will discontinue its four daily flights to Pittsburgh, the
US Airways hub where passengers could make connections to
most of the country. Nineteen other cities will also lose
their Pittsburgh service, US Airways said, as the airline
dismantles the hub to concentrate more on point-to-point
flying.

Ithaca is one of 34 communities, mostly in the Northeast
and mid-Atlantic states, that are served only by US
Airways, an airline that has already been through one
bankruptcy since the Sept. 11 attacks and is struggling
hard to avoid another. If it fails and is shut down, those
34 airports will be left without scheduled service.

Smaller cities across the country have depended for decades
on the hub-and-spoke system used by US Airways and other
airlines for convenient access to air travel. By funneling
passengers through their hubs, the airlines were able to
provide more frequent service and connections to more
destinations than these small markets could otherwise
sustain. "Ithaca really was designed for the hub-and-spoke
system," said Robert Nicholas, the manager of the city's
airport.

But that system is being undermined by high costs, the
financial aftereffects of the deep slump in air travel
after Sept. 11 and the growing willingness of passengers to
drive farther to reach a city served by a low-fare airline.


Robert W. Mann Jr., an industry consultant based in Port
Washington, N.Y., said he doubted that many communities
would be able to find a replacement for US Airways. Only
cities that qualify for federal subsidies under programs
like Essential Air Service, which pays airlines to fly to
out-of-the-way communities, or that are willing to
subsidize flights may get another airline, he said.
Otherwise, "instead of air-service spokes, they will revert
to driving spokes," Mr. Mann said.

Service to Ithaca, 57 miles southwest of Syracuse, does not
qualify for federal subsidies, and it has been suffering
death by a thousand cuts. Tompkins Regional, where carriers
like Mohawk, Empire, Allegheny, Piedmont, Commuter and TWA
have come and gone over the years, lost US Airways' last
rival four years ago, when Continental Airlines left.

US Airways stopped flying mainline jets to Ithaca early in
2003, and now offers only its US Airways Express turboprops
and regional jets. When the Pittsburgh flights end in
November, Ithacans will be able to fly only to Philadelphia
or to LaGuardia Airport in New York.

US Airways' declining fortunes are a major cause of the
cutbacks, but so are local passengers who would rather
drive to Syracuse, Rochester or even Buffalo to catch a
flight than pay US Airways' relatively high fares.
Passenger volume, which peaked in the mid-1990's, has since
fallen more than 25 percent. US Airways and the Ithaca
airport divided $60,000 in losses on flights to and from
Ithaca in 2003 (one-quarter by the airport; the rest by the
airline).

Even Alfred A. Kahn, a former chairman of the Civil
Aeronautics Board, often avoids flying from Tompkins
Regional. Mr. Kahn was the architect of airline
deregulation in the Carter administration, which led the
airlines to create the hub-and-spoke networks and start
feeder-flight service to scores of cities like Ithaca.

At 86, he still cuts a jaunty figure, strolling through
Ithaca cane in hand, though he stopped driving after a
serious accident two years ago. While he uses the local
airport occasionally, he often hires a limousine to take
him to Syracuse, where he can fly to Kennedy Airport in New
York on JetBlue Airways, the low-fare carrier based in
Queens.

JetBlue's round-trip fare between Syracuse and J.F.K. is
about $200, so even after paying $65 each way for the
hourlong limo ride, Mr. Kahn saves money compared with US
Airways' $550 round-trip fare between Ithaca and LaGuardia.


"The fares are so low and the flights are so pleasant," Mr.
Kahn said of JetBlue.

Cornell, the biggest employer in the area, encourages but
does not require its staff and faculty to seek the lowest
fares when traveling on college business, said Richard
McDaniel, associate vice president for campus and business
services. Flights from Tompkins Regional are still
permitted, Mr. McDaniel said, but Cornell is feeling the
pinch of the high fares. "We don't have a lot of money to
burn," he said.

So, to cut costs and to hedge against the possible loss of
air service, the university is starting a bus line linking
its Ithaca campus with its medical college in New York
City. The 20-seat bus, equipped with tables and ports for
laptop computers, will start running on Sept. 7; the fare
for the ride, just under five hours each way, will be $149
round-trip.

Still, some at the university would rather fly. Mark H.
Anbinder, a computer specialist at Cornell, has set up
alerts on Travelocity.com, the discount travel Web site,
that let him know when US Airways has a fare sale, but he
sticks to Tompkins Regional with or without the discounts.

"I will pay a premium not to have to drive to Syracuse and
spend that three hours in the car," he said.

Rachel Weiner, a senior at Cornell who grew up in Andover,
Mass., prefers the air to the highway when she goes home
for a weekend, hopping on a 16-seat plane from Ithaca to
LaGuardia and then catching the shuttle flight to Boston.

Flying takes as long as driving, Ms. Weiner said - about
six hours - but "the drive is so long and taxing."

Community leaders have discussed many ideas for increasing
passenger traffic, like fare subsidies, marketing campaigns
and appeals to airlines to invest in Ithaca.

"How do we reinvent ourselves so that they say, 'Hmm,
there's something there?' " asked Barbara Blanchard, a
Tompkins County legislator and a member of the local Air
Service Task Force.

The task force, set up in 1997, gained an added sense of
urgency when US Airways filed for bankruptcy in 2002 and
did not pay fees to the airport for three months. Mr.
Nicholas said the airport eventually agreed to accept 10
cents on the dollar for the arrears, a loss that helped
knock the airport's operating fund down to about $67,000
from $400,000 in 2001. It is likely to shrink further after
the Pittsburgh flights stop.

Even so, Tompkins Regional remains a point of community
pride. The bright and airy terminal, opened in 1994, was a
huge improvement over the tiny old cinderblock structure,
whose baggage claim amounted to a garage door and a
chain-link fence. The first half-hour is free in the
short-term parking lot, and an official greeter scurries up
with a baggage cart, also free, to meet travelers who are
dropped off at the curb.

Between flights last week, the airport's three US Airways
counters stood empty; one airline employee sat reading,
while two others looked up with smiles as a handful of
people strolled in. There was nothing resembling a line at
the Hertz and Avis car rental desks, nor any wait at the
security checkpoint - heaven for a harried traveler,
perhaps, but not for Mr. Nicholas. "I'd rather it was a
zoo," he said as he led a tour earlier this month.

Travelers encounter no snags in the terminal, but all too
many on the tarmac. As US Airways has shed employees, it
has repeatedly had problems finding crews for commuter
flights to Ithaca and other small cities, resulting in
frequent cancellations and delays.

That problem, and the shrinking number of destinations
offered by US Airways, has prompted even some of the
airport's biggest fans to turn elsewhere. Jean McPheeters,
president of the Ithaca Chamber of Commerce, travels
frequently to Duluth, Minn., a city US Airways does not
serve. She generally drives to Syracuse to catch a
Northwest Airlines flight.

Ms. McPheeters said she was confident that Ithaca could
find a replacement for US Airways if necessary. With its
scenic beauty and a stable economy dominated by Cornell,
Ms. McPheeters said, Ithaca could make a persuasive pitch.
Her own preference, she said, would be a low-fare carrier
like JetBlue or Independence Air, rather than one of the
traditional airlines.

But Mr. McDaniel said that community leaders knew they
faced competition. Some cities that are losing US Airways
service have already formed a lobbying group, the Coalition
for Disadvantaged Airports.

"We have a strong economic base in our little region," Mr.
McDaniel said. "But other people have wonderful stories to
tell, too, so we had better get moving."

http://www.nytimes.com/2004/08/13/business/13air.html?ex=1093406323&ei=1&en=41aa2ee7726a6458


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