futureualpilot
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What Makes A City Ask For An Airline?

Tue Oct 28, 2003 12:38 pm

The "what attracts a airline to a city" post got me wondering. WHat makes a certain city ask an airline to serve them, if any?

[Edited 2003-10-28 04:40:33]
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F9Widebody
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RE: What Makes A City Ask For An Airline?

Tue Oct 28, 2003 1:14 pm

Well, I know here in Denver, they wanted Air France, not for the carrier, but for the route. They wanted a DEN - CDG nonstop. I am sure if United started that route, they would have been just as happy, but a lot of it has to do with routes. Some other things that may influence the desire for an airline would be reputation, fares, etc. These could both reasons why Jetblue is a desired airline for airports these days. It offers low fares, and has a good reputation. Just my two cents.

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mariner
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RE: What Makes A City Ask For An Airline?

Tue Oct 28, 2003 1:26 pm

Originally, it was called "the Southwest effect".

Numerous studies have shown that when Southwest enters a market, not only do air fares drop, but there is an exponential growth in traffic.

Now that there are more LCC's, it isn't just limited to Southwest.

All the LCC's have a constant parade of city/airport officials asking them to start service to their city - sometimes even when that city already has an LCC.

The big prize is international service. As F9Widebody says, Denver is anxious for flights to Paris, and is offering generous concessions.

They offered a million bucks in concessions to anyone who would start a Denver/Mexico City non-stop. Mexicana took them up on it. Frontier gets between $25,000 and $50,000 for it's service to each of the provincial Mexican cities/resorts.

Denver's big wish is for a non-stop to Asia. The new runway could accomodate such flights, and if any airline starts that service you can bet that DIA would be very generous.

Why? Non-stop service to big international destinations means that the city and it's state is "on the map" for multi-national corporations, which can mean big bucks for the city/state.

if the airport can also offer non-stop connections to other international cities, then it becomes an even more attractive package.

That's the theory.  Smile/happy/getting dizzy

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mariner
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PVD757
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RE: What Makes A City Ask For An Airline?

Tue Oct 28, 2003 1:40 pm

An airport gets a list of their destinations from the DOT filings. This tells them where enplaned passengers that leave their airport travel to. It's also referred to as O&D traffic. When you have a list of destinations, say the top 50 of 100, you go down the list and figure out where service could be added. For example, your airport might have a destination in the top 5 that does not have non-stop service. It is assumed that if you had it, more passengers would travel there. You take that information and you try to figure out which airline could potentially serve that market. It might be an existing carrier, or you could target a new entrant to the airport. Depending on the situation, the airport might need to provide incentives such as a travel bank, joint marketing services, or even reduced fees for overnight parking, landing fees, or remtal space for adding the service. It would be just like any other business trying to grow. You figure out what market to target and try to fulfill that need for additional service.
 
Midway2AirTran
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RE: What Makes A City Ask For An Airline?

Tue Oct 28, 2003 1:42 pm

These days it is mostly the low fare carriers that typically result in increased passenger traffic and eventual new commerce for the city or area. Of course International flights are just as important and can have the same effect too!
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futureualpilot
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RE: What Makes A City Ask For An Airline?

Tue Oct 28, 2003 2:05 pm

Thanks for your responses everyone! So do airlines more often ask a city to let them fly there or is it vice versa?
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PVD757
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RE: What Makes A City Ask For An Airline?

Tue Oct 28, 2003 3:40 pm

It would depend on which airport you are. LGA gets asked. Someone like CMH has to go and get service.
 
mandala499
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RE: What Makes A City Ask For An Airline?

Thu Oct 30, 2003 4:50 am

There is a saying... "If they can't fly there, the money won't arrive." So, get airlines to fly into your city so investors look at you as a potential city by giving you a visit. Plus, not everyone can afford to send Mr. X to ABC city on a private jet.

This is for mass investment and mass tourism...

I didn't read about this in an aviation magazine, but a business one about 10 years ago !

Mandala499
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caetravlr
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RE: What Makes A City Ask For An Airline?

Thu Oct 30, 2003 4:57 am

Mandala took the words right out of my mouth... I was just going to say...

Money

A semi decent airline destination is going to be more attractive to businesses, which brings more jobs, more taxes, etc....
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