Hopkins braces for flight cutbacks
Associated Press
Airport Director Ricky Smith says officials plan to propose that Continental Airlines add a direct flight from
“We’re preparing our strategy,” Smith said.
A Continental spokeswoman said the airline doesn’t speculate publicly on future routes.
The carrier plans to shed about 11 percent of mainline capacity starting this month, and the cuts are deep in
The airport, which depends on Continental for the bulk of its passenger traffic, has refinanced hundreds of millions in debt to get better interest rates.
With the airline industry trying to adjust to high fuel prices, airports are delaying capital projects, freezing hiring, and considering increases in everything from landing fees to parking. Concessionaires are hurting, and many expect to close.
The problems are greatest at secondary airports that are losing a bigger share of their flights and lack international service to shore up weak domestic traffic.
But the airline industry is beginning to shift from critical to recovery mode, Smith said. After nearing record highs of $150 a barrel, oil prices are now hovering near $117.
“If this trend continues, I think you’ll see a number of airlines adding back service,” Smith said.
That could prompt airlines to try to revive routes after buyouts and thousands of layoffs, said industry consultant and former Continental executive John La Costa.
“All of a sudden these decisions start becoming permanent,” La Costa said. “They’re cemented.”
Terminal advertisement sales are up by 43 percent in 2008, Smith said. The airport has marketing plans for sponsorships and naming rights, including a five-year deal with Pepsi
The
Non-airline income at
Some airports are considering raising parking fees and leases on airport-owned land and office parks.
Cincinnati/Northern Kentucky International Airport has closed one terminal and stopped hiring staff as it weathers a big capacity cut by Delta Air Lines, which is looking for antitrust clearance to merge with Northwest Airlines. The airport is losing 24 percent of its flights, the biggest drop among large
Despite the cuts, airports also need to be ready to restart expensive projects, said Sean Broderick, a spokesman for the Association of American Airport Executives.
“Airports must prepare for the future, even as they’re dealing with the now,” Broderick said. “Demand for air travel is not declining.”
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Filed by Associated Press September 2nd, 2008 in Local and State. Popularity: 8% |
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