Airline competition leads to lower fares
Here’s a new argument against airline consolidation: With four major competing airlines, fares at General Mitchell International Airport in Milwaukee fell by more than 25 percent compared to a year ago.
Not only that, but the price decline was the second largest among the country’s top 100 airports, according to a new report from the US Department of Transportation’s Bureau of Transportation Statistics.
The average airfare at Mitchell dipped to $247 compared with $331 for the fourth quarter of 2008, according to the report.
“The decrease at Mitchell ranked second only to Cincinnati/Northern Kentucky International Airport, long regarded as one of the most expensive airports in the country,” according to the Business Journal of Milwaukee.
Mitchell’s average airfare ranked among the lowest in the nation. Atlantic City International Airport in New Jersey had the lowest average fare at $190, while Huntsville International Airport in Alabama had the highest average airfare at $492.
Increased competition is responsible for the decrease in airfares at Mitchell, airport spokeswoman Pat Rowe said.
“That’s the key factor,” she said.
In addition to lower airfares, the boost in competition has led airlines vying for passengers at
Mitchell is about to add more nonstop flights to key business destinations, including cities on the West Coast, said Pete Beitzel, vice president of infrastructure and international business at the Metropolitan Milwaukee Association of Commerce.
“That’s what the business traveler really needs,” he said. “You like to go to an appointment and come back on the same day if possible. There’s nothing worse than changing planes.”
The competitive landscape at Mitchell has changed dramatically, mainly due to an aggressive expansion by AirTran Airways, which has been adding service at a rapid pace since its failed hostile takeover of Midwest Airlines.
Competition became even more fierce at Mitchell in the fourth quarter of 2009 with the arrival of Dallas-based Southwest Airlines, the nation’s largest discount carrier.
With Atlanta-based Delta Air Lines, the world’s largest airline and the No. 3 carrier at Mitchell with a market share of about 14 percent, added to the mix, competition at the airport has reached unprecedented levels.
With four airlines competing for the majority of business at Mitchell, fares likely will remain depressed for the foreseeable future, Beitzel said.
By David Wilkening
David
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