Waiting for Southwest
Airline to fill discount airfare gap left by last year's departure of AirTran
By John McDermott
Travelers and tourism officials agree: Southwest Airlines can't touch down in Charleston fast enough.
Newly released figures from the government show that Charleston International Airport posted the biggest hike in airfares in the nation between the first quarters of 2009 and 2010, reflecting the departure of low-fare carrier AirTran last December.
AirTran ticket agent Josephine Thomas prepares to close down the ticket counter after processing her final passenger out of Charleston last year. Travelers are eager for Southwest Airlines to land in the Lowcountry and fill the discount-airfare void left by AirTran.
The average ticket from Charleston jumped 16.1 percent year-over-year to $443, the U.S. Department of Transportation said in a report issued Wednesday. Charleston also had the second-highest fares overall behind Huntsville, Ala.
Both figures are well above the national average. The average U.S. domestic fare in the first three months of this 2010 rose to $328, a nearly 5 percent increase, according data compiled by the Bureau of Transportation Statistics.
The government's latest quarterly statistics include the ticket price as well as taxes and security fees. They don't include other costs such as luggage surcharges that most carriers have adopted.
Charleston's unenviable ranking at the top of the DOT list was not entirely unexpected.
"It's a direct reflection of AirTran leaving the market," said Mary Graham, senior vice president for public policy at the Charleston Metro Chamber of Commerce who worked to recruit Southwest to the airport.
Graham and other local business promoters are banking that the arrival of the low-fare kingpin will force rival airlines to lower their ticket prices, as was the case when AirTran came to town. Dallas-based Southwest announced plans this year to inaugurate at Charleston International service at Charleston International in early 2011, but it has not released any other details.
"It can't come quickly enough," said David Jennings, chairman if the Charleston County Aviation Authority, which runs the airport. "Southwest is a blue-chip airline. It will do dramatic things in this market," he added.
Until then, local air travelers can expect little short-term relief from rising prices, as it's unlikely that another low-cost airline will try to get head start in Charleston on Southwest.
"I don't want to presuppose what another carrier would say, but my best guess is that there won't be any significant movement until Southwest gets into the market here and every one sees what the impact is," Jennings said.
The absence of AirTran already has made a sizable dent in traffic volume at the airport, he added.
After the discount carrier launched its first local flight in 2007, the number of enplanements jumped to about 1.25 million from 1 million annually, as more travelers discovered that flying out of Charleston had become more affordable on many routes.
"With AirTran's departure, we're trending down to around 1.1 million," Jennings said. "We haven't lost all of the new passengers, but we've lost a lot of them."
Helen Hill, executive director of the Charleston Convention and Visitors Bureau, said that "leakage" includes travelers who now drive rather than fly. Others use airports served by a low-cost carrier, such as Myrtle Beach's.
Hill said she expects Charleston won't rank on the DOT high-fare list once Southwest settles in and pressures rivals to cut prices.
"We'll work really hard to make them successful when they are here," she said.
The area's ranking as a high-fare destination should serve as wake-up call for local business and leisure travelers who are tired of paying exorbitant prices, Hill added.
"It tells us as community we have to support a low-cost carrier. We have to," she said.
Mount Pleasant resident Sam Millit, who works in the pharmaceutical industry, can't wait for Southwest to shake up the market.
The Delta Air Lines frequent flyer said when AirTran was still part of the mix, he could get to and from Atlanta for under $200. That same trip now runs $500 to $600.
"I fly to Atlanta a lot for business," he said.
Ticket prices in Charleston have escalated to the point that Millit and his wife have driven to Myrtle Beach, Savannah and Columbia to take advantage of cheaper flights. The savings on just two trips this year was $750.
Ticket trends
The 2010 first-quarter average fare at all airports was $328, up 4.7 percent from the same period a year earlier.
Biggest increases
City 1Q '09 1Q '10 Change
Charleston $382 $443 +16.1%
Detroit $300 $349 +16,0%
3 Manchester, N.H. $279 $323 +15.7%
4 Atlantic City, N.J. $163 $188 +15.2%
5 Albany, N.Y. $315 $361 +14.6%
Largest decreases
City 1Q '09 1Q '10 Change
Milwaukee $300 $250 -16.6%
Cincinnati $446 $404 -9.3%
Des Moines $403 $388 -3.8%
Boston $342 $332 -3.0%
Grand Rapids, Mich. $418 $406 -2.9%
Reach John McDermott at 937-5572 or jmcdermott@postandcourier.com.
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