Posted Sep 18, 2008, 2:04 PM
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Airport leaders: Airline to cut fares
Thursday, September 18, 2008 By JEFF AMYBusiness Reporter
Mobile Regional Airport officials said Wednesday that American Eagle has made its fares to and from Mobile "more competitive" with prices at airports in Pensacola and Gulfport.
"Their commitment to adjust fares truly shows their commitment to the Mobile community," said Bay Haas, executive director of the Mo bile Airport Authority, which runs Mobile Regional.
Andrea Huguely, a spokeswoman for American Eagle, said that the airline's governmental relations chief, Dale Morris, met with Haas and other local officials.
"He did make a commitment that we would remain competitive in that market," Huguely said. "We wouldn't so much characterize it as a change. It's more our ongoing commitment to make sure we are competitive."
Haas said he made American's commitment public Wednesday because airport employees concluded from analysis of fares from the first quarter that American had reached rough parity. Mobile Mayor Sam Jones in turn encouraged people to fly American from Mobile.
The Airport Authority has been criticized because of high fares charged by airlines serving Mobile Regional. Many Mobile-area cus tomers choose to fly from Pensacola or Gulfport, which are both served by discount carriers, to save money.
According to data prepared for the authority by Sixel Consulting Group, the cost to fly out of Mobile was the seventh highest among the nation's 150 largest airports in the 12 months that ended March 2008.
Pensacola ranked 62nd highest in fares, while Gulfport ranked 76th.
Haas said that American Recently sought support from Mobile for its efforts to combine transatlantic operations with British Airways.
"They asked us for help on a political issue and we said we want to be treated as well as the people in Mississippi and the people in Pensacola," Haas said.
Pricing data from Airline Planning Group shows that in five quarters beginning January 2007 and ending March 2008, American's average fares to southwestern destinations were higher from Mobile than from Gulfport and Pensacola in three quarters and lower in two. There was never more than 7 percent difference.
American Eagle, the regional affiliate of American Airlines, restarted Mobile service in 2005, and has in recent months carried more than 20 percent of all passengers in and out of Mobile. That's the second largest market share behind longtime leader Delta Air Lines.
But American is reducing service to Mobile, meaning that there will be fewer chances to use the fares.
American Eagle dropped its once-daily round trip to Chicago this month, and will trim from five to three daily trips to Dallas-Fort Worth International Airport by November. Airport officials say they're trying to restore a fourth daily link to Dallas.
Overall, the airline will fly 41 percent fewer seats to and from Mobile by November, compared to a year before.
Continental Express seats to and from Houston are supposed to rise 13 percent by November compared to a year earlier, while Delta's seats to Atlanta are supposed to rise 1.5 percent over the same period. Northwest Airlink plans no change to Memphis, Tenn., while US Airways Express plans to cut 6 percent of its seats to Charlotte, N.C.
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