Sunday, May 5, 2013

Loss of AirTran, last-minute business travel key factors in Huntsville ...

HUNTSVILLE, Alabama - Are airline fares fair at Huntsville International Airport?

During a Thursday work session, City Council members heard an explanation for why Huntsville has the nation's highest average round-trip ticket price - and what airport officials are doing to try to reverse the trend.

According to the U.S. Department of Transportation's Bureau of Transportation Statistics, round-trip flights from the Rocket City averaged $522 in the third quarter of 2012. Birmingham and Nashville averaged $383 and $360, respectively. The national average round-trip ticket price was $367.

"It's OK to win the national championship, but not in this particular category," said Rick Tucker, the airport's executive director.

Tucker told council members ticket prices began creeping up after AirTran closed its Huntsville hub last August. The city also has a large number of business travelers who often book at the last minute - and pay top-dollar for a seat.

The typical U.S. airport has a roughly even mix of business and leisure travelers; Huntsville International is 61 percent business and 39 percent leisure, said Tucker.

Southwest Airlines' decision to pull AirTran out of Huntsville and 12 other smaller markets cost the city its only low-cost carrier. It also left Huntsville without non-stop service to Baltimore Washington International Airport and Orlando, Fla.

Huntsville was "making progress" in closing the ticket price gap with Birmingham and Nashville, said Tucker, but "I don't think that's going to continue to hold true without AirTran."

Airlines price tickets "based on what the market will bear," he said. "It's supply and demand."

Tucker said airport officials are determined to get back non-stop service to Baltimore and Orlando - the No. 1 and No. 3 most popular destinations from Huntsville last year -- increase the number of flights to existing markets and maintain current routes.

According to surveys, about half of Huntsville-area residents who drive to Birmingham and Nashville seeking cheaper plane tickets end up flying Southwest. But Tucker said Southwest has increased passenger fares 39 percent in the past five years.

Round-trip flights from Huntsville booked well in advance cost about the same as flights from Birmingham and Nashville, said Tucker. But once those cheaper seats are sold, he said, "people who are a little later are going to be paying the higher fares."

City Council President Mark Russell said he's felt the sting of a last-minute booking from Huntsville.

"Our company has paid $1,500 before for a ticket to D.C.," said Russell. "We can go to Dubai for $1,200."

Tucker said the airport's Huntsville Hot Ticket e-mail alerts and phone line can help people find the cheapest flights from the Rocket City. Log onto huntsvillehotticket.com anytime, or call (256) 258-1944 from 9 a.m. to 5 p.m. weekdays.

Source: http://blog.al.com/breaking/2013/05/loss_of_airtran_last-minute_bu.html

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