<b>Cup O' Joe Expands</b>

Posted by Marla Matzer Rose on April 1, 2009

 

Also, in a piece of good news for regular visitors to Port Columbus, the board OK'd an expansion of Cup O' Joe to include a MoJoe Lounge (those who've been to other Cup O' Joe locations, such as the one on the Cap in the Short North, will be familiar with this concept). The move will allow Cup O' Joe, which sits right at the center of the departures level, to expand from 365 to 567 square feet and offer more food along with alcholic beverages.

 

MORE: http://blog.dispatch.com/flying/2009/04/nwa_to_concourse_c_cup_o_joe_e.shtml

Airport traffic sinks 9.5% in April

Business First of Columbus

Tuesday, May 26, 2009, 5:09pm EDT

 

Passenger traffic at Port Columbus International Airport in April tumbled more than 9 percent from a year earlier, but the demise of Skybus Airlines couldn’t be blamed for the latest decline.  The Columbus Regional Airport Authority on Tuesday said 525,223 passengers used the airport in April, down 9.5 percent from 580,193 passengers a year earlier.  The decline represented the first apples-to-apples comparison of airport use data in a number of months because it didn’t include a full month of traffic on Skybus Airlines, which folded in the early days of April 2008 after carrying about 13,700 passengers.

 

http://columbus.bizjournals.com/columbus/stories/2009/05/25/daily8.html?surround=lfn

State OKs another grant for airport work

Business First of Columbus

Monday, June 1, 2009, 4:58pm EDT

 

The state Controlling Board has approved a grant of more than $600,000 for the Columbus Regional Airport Authority to complete $30 million in roadwork improvements aimed at improving access to Port Columbus International Airport and making room for expanding NetJets Inc.  The grant, approved Monday, totals $661,149 and comes on top of $2 million approved last year for work at the airport.  The project includes improvements to Bridgeway Avenue, Goshen Road and Hubler Lane to aid the expansion and to create a new main entrance to the airport’s north airfield and the corporate campus for NetJets, a private aircraft service provider that employs about 2,000 workers in the area.

 

More at http://columbus.bizjournals.com/columbus/stories/2009/06/01/daily12.html?surround=lfn

Delta, Northwest consolidating at Port Columbus Tuesday

Business First of Columbus - by Matt Burns

Monday, June 8, 2009, 2:30pm EDT

 

Travelers at Port Columbus International Airport will see the first physical signs of the Delta-Northwest merger this week.  Delta Air Lines Inc. representatives said Northwest Airlines Corp.’s check-in operations will move adjacent to Delta’s at Port Columbus effective Tuesday morning.  Atlanta-based Delta, the airport’s second-busiest carrier this year, bought Eagan, Minn.-based Northwest last fall in a deal valued at more than $3 billion.

 

Read more at http://columbus.bizjournals.com/columbus/stories/2009/06/08/daily5.html

Port Columbus headed for 'down' year

Passenger totals could end up at lowest level since 1995, official says

Tuesday,  June 23, 2009 - 6:57 PM

By Marla Matzer Rose, THE COLUMBUS DISPATCH

 

Passenger traffic for 2009 at Port Columbus is on track to finish at its lowest level since 1995, the airport's chief executive said today.  Port Columbus will serve about 6 million travelers this year, down from a record number last year of more than 7.7 million, Elaine Rogers told Columbus Regional Airport Authority board members at a meeting late this afternoon.  The demise of Skybus Airlines is a big factor, because 2008 numbers include almost four months of activity for the Columbus-based airline that folded in April of last year.

 

Read more at http://www.dispatch.com/live/content/business/stories/2009/06/23/airport_may.html?sid=101

Stimulus cash lands at Port Columbus

Business First of Columbus - by Adrian Burns

Friday, June 26, 2009

 

The Columbus Regional Airport Authority didn’t get its hands on federal aviation stimulus funding that brought $29.2 million to other Ohio airports, but has scored millions from other pots of stimulus money for environmental and infrastructure projects.  The $787 billion American Recovery and Reinvestment Act made $1.1 billion available for airport improvements around the country.  But applications for millions of dollars for Port Columbus International Airport and other Central Ohio projects failed to meet key criteria, primarily a requirement that they be “shovel-ready,” said Airport Authority spokeswoman Angie Tabor.

 

Read more at http://columbus.bizjournals.com/columbus/stories/2009/06/29/story2.html

The Dispatch ran a Sunday article concerning the most recent wave of airline flight cuts and the position that CMH is in relative to other major airports around the state. Port Columbus' more favorable numbers are likely due to the fact that Skybus' inflated passengers numbers have ellapsed passed a year so are no longer compared along with AirTran having created a nice niche in the market:

 

 

Port Columbus faring better than Ohio rivals

Sunday,  July 5, 2009 3:32 AM

By Marla Matzer Rose

THE COLUMBUS DISPATCH

 

Although Port Columbus has been hit by its share of cuts in recent months, it's faring better than all other major Ohio airports.  Effective in October, Port Columbus' capacity will be down 4 percent -- exactly in line with the average of the top 100 U.S. airports -- while Cincinnati and Dayton will be down about 20 percent and Cleveland down 8 percent.  "The industry is definitely in dire condition, but Columbus holds its own," said David Whitaker, vice president of business development for the Columbus Regional Airport Authority.  "It's actually among the best airports from a revenue standpoint for several of our carriers and has been for some time."

 

Read more at http://www.dispatch.com/live/content/business/stories/2009/07/05/ohio_airports.ART_ART_07-05-09_D1_3KEBDML.html?sid=101

Port Columbus Airport is 80 years old!

 

Slideshow: The dedication of Port Columbus - July 8, 1929

Luring shoppers on the fly

Port Columbus to spruce up retail corridor to encourage more spending by travelers

Thursday,  August 13, 2009 - 3:13 AM

By Marla Matzer Rose, THE COLUMBUS DISPATCH

 

Planning to fly out of Port Columbus soon?  Airport officials hope you'll buy before you fly.  The airport benefits when its shops and restaurants do well.  But having deemed some of the retail areas less than shopper-friendly, last week, the board of the Columbus Regional Airport Authority took action to spruce up the place.  It authorized spending up to $176,000 on renovations to create "a sense of place and a state of mind where travelers feel comfortable spending more time in and around" the retail and food concessions.

 

Read more at http://www.dispatch.com/live/content/business/stories/2009/08/13/airport_retail.ART_ART_08-13-09_A8_2VEOK3D.html?sid=101

Glad they scrapped the faux brick and lampposts...but $176,000 does not sound like much for renovations. 

NetJets alters HQ so airport can save:  Design change lets radar station stay

Thursday,  August 27, 2009 - 3:28 AM

By Marla Matzer Rose, The Columbus Dispatch

 

NetJets' decision to make its headquarters a bit less lofty than originally planned is going to save local airport officials millions of dollars.  The company, which is expanding its offices and moving its headquarters here from New Jersey, has decided that it can tweak the design of its new building to keep it under 77 feet in height.  That eliminates the need for the Port Columbus radar station to be moved, saving the Columbus Regional Airport Authority $10 million.

 

More at http://www.dispatch.com/live/content/business/stories/2009/08/27/netjets_radar.ART_ART_08-27-09_A12_JKESP8C.html?sid=101

Port Columbus secures key approval for runway relocation

Business First of Columbus - by Matt Burns

Friday, August 28, 2009, 2:50pm EDT

 

Federal aviation regulators this week gave a nod to the Columbus Regional Airport Authority’s plans to relocate Port Columbus International Airport's south runway farther south along with other improvements.  The Federal Aviation Administration said it completed an environmental analysis of the authority’s proposed runway relocation and issued what it called a record of decision for the project.  The approval comes along with the assumption that the airport authority will complete a number of previously disclosed moves to ready the project, including the purchase of nearby properties and noise mitigation for area homes.

 

Read more at

http://columbus.bizjournals.com/columbus/stories/2009/08/24/daily37.html?surround=lfn

Stimulus aid lands at other airports

Wednesday,  September 2, 2009 3:07 AM

By Doug Caruso

THE COLUMBUS DISPATCH

 

Port Columbus has been shut out of a $1.1 billion federal stimulus program that has been criticized for sending funds to smaller, noncommercial airports.  The Columbus Regional Airport Authority, which oversees the Port Columbus, Rickenbacker and Bolton Field airports, applied to the Federal Aviation Administration for more than $20 million for six projects.  The largest sought $12 million to help pay for moving the south runway at Port Columbus to accommodate simultaneous takeoffs and landings, said Angie Tabor, a spokeswoman for the airport authority. The project, planned since 2006, would double the airport's capacity and make room for a new terminal.

 

Read more at http://www.dispatch.com/live/content/business/stories/2009/09/02/Stim_Airports.ART_ART_09-02-09_A12_GMEUL1M.html?sid=101

International service

Columbus may offer cash lure for flights

Wednesday,  September 2, 2009 3:07 AM

By Marla Matzer Rose

THE COLUMBUS DISPATCH

 

In the hopes of landing prestigious international air service, Columbus officials are exploring a strategy that has worked in other cities: Put up some cold, hard cash.  The effort comes after Columbus has tried for years but failed to get nonstop flights to Europe. The task is even more daunting now as airlines are cutting back.  "It's a trend," said David Whitaker, vice president of business development for the Columbus Regional Airport Authority.  He has been working with business groups such as the Columbus Partnership and the Columbus Chamber on the issue.  In recent months, a public/private partnership in Pittsburgh put up a $9 million guarantee to secure nonstop service to Paris for two years on Delta Air Lines.  The Port of Portland paid Delta $3.5 million to keep nonstop service to Tokyo during the slower winter months.  And Maryland approved a two-year subsidy of up to $5.5 million per year to British Airways to keep the carrier at Baltimore-Washington International airport.

 

Read more at http://www.dispatch.com/live/content/business/stories/2009/09/02/airport_international.ART_ART_09-02-09_A12_GMEUKRF.html?sid=101

Well one of the reasons that CLE doesn't support FALL/WINTER transactlantic service is because the B757-200 ETOPS frequently must make fuel stops when flying westbound against strong headwinds.  This can also lead to payload restrictions and therefore a decrease in revenue.

 

Also, one of the reasons that Continental uses the B757 CLE-LHR-CLE is because they do not have a large widebody fleet to begin with.  The B757 is also used EWR-XXX-EWR.  Widebodies being in short supply, they are used on higher yielding city pairs.

 

This is also important to keep in mind when it comes to subsidized city pairs such as the contemplated CMH-Europe.  In many cases the airline simply does not have enough metal to fly marginal city pairs.  Even a subsidy will not maximize profit.

 

Lastly, just because a market such as Columbus may have on average 300 people per day fly transatlantic, it doesn't mean that all 300 will fly to the same INITIAL destination city (such as London).  They may make connection to other cities from London.  So, if only 50 out of the 300 are flying CMH-LHR, chances are that even with a subsidy, the rout will fail.  Then you have to consider what happens when the subsidy runs out - they usually don't continue indefinitely.  City pairs are not cheap to establish and international ones even more so.  when the cash dries up, so does the rout in most cases.

Well one of the reasons that CLE doesn't support FALL/WINTER transactlantic service is because the B757-200 ETOPS frequently must make fuel stops when flying westbound against strong headwinds.  This can also lead to payload restrictions and therefore a decrease in revenue.

 

Also, one of the reasons that Continental uses the B757 CLE-LHR-CLE is because they do not have a large widebody fleet to begin with.  The B757 is also used EWR-XXX-EWR.  Widebodies being in short supply, they are used on higher yielding city pairs.

 

This is also important to keep in mind when it comes to subsidized city pairs such as the contemplated CMH-Europe.  In many cases the airline simply does not have enough metal to fly marginal city pairs.  Even a subsidy will not maximize profit.

 

Lastly, just because a market such as Columbus may have on average 300 people per day fly transatlantic, it doesn't mean that all 300 will fly to the same INITIAL destination city (such as London).  They may make connection to other cities from London.  So, if only 50 out of the 300 are flying CMH-LHR, chances are that even with a subsidy, the rout will fail.  Then you have to consider what happens when the subsidy runs out - they usually don't continue indefinitely.  City pairs are not cheap to establish and international ones even more so.  when the cash dries up, so does the rout in most cases.

 

I'm glad you pointed that out about CLE.  People think there is no O&D traffic to support international services, but many people - like me - prefer to fly from Cleveland rather than transit via newark.  Even CLE's staff has said they would perfer to have more flights, but CO would rather cram another flight into busy and delayed newark.

 

Also, if does anyone think this is realistic??  I dont think any international service from CMH is possible, since there is no hub connection.  It would strickly be O&D to the european city. CMH is not an international city nor a destination.  This is about as smart as skybus.

 

This doesn't make sense to me.

Quite right.... In order to make ANY city pair a success, there has to be a certain amount of O&D passengers paying PREMIUM fares.  You can fill an airplane with Skybus level fares, but you'll lose money on EVERY flight.  I drive jets for a living.  You can maximize profit by just selling 4 out of 12 first class seats at the unrestricted fare on some flights.  All other seats are icing on the cake.

 

One last point to make is that even with connections to add to the passenger count, it's O&D that generates revenue.  if a rout can't make it on O&D alone, then all the connecting passengers in the world won't keep it around.  I just don't see CMH as having the PREMIUM O&D to guaranty any success.  Plus; and this is not to disparage CMH, it is not and probably never will be an international destination.

 

A word about Newark:  Continental has an economy of scale PLUS the O&D from NY/NJ/CT to make just about any city pair work.  Cleveland will always play second fiddle to that market

So, are they just looking at three city's in Europe (London, Paris, Frankfurt) or were they just using those as examples?  If those are the only cities they are looking at, why not look at other cities such as Hong Kong, Tokyo, Sydney, or Kuwait City? 

 

Would a daily international flight really be viable for us as a city?  As much as I would like to have at least one, would it be worth it?  Would it be used?  I'm sure these are all questions that people are already asking. 

 

If we do get an international flight, perhaps we should see what international markets are underserved in the United States as a whole and target those underserved regions. 

 

We have a large Somali population.  How do they get home (provided they do go home seeing as though there is  much civil unrest in that part of the world).  Let's say they wanted to, how do there flights go?  Don't they usually do something like fly to New York, to London, to Ammen Jordan (or maybe even Dubai) and then fly from there to there respective countries?  Maybe we could have a direct flight from Columbus to Ammen, Jordan or Dubai.....

 

 

Lastly, just because a market such as Columbus may have on average 300 people per day fly transatlantic, it doesn't mean that all 300 will fly to the same INITIAL destination city (such as London).

 

This is very true. However:

 

They may make connection to other cities from London.

 

I would imagine the airport is banking on intra-Europe connections from the European gateway city, as well as connections into Africa and the Middle East, two rapidly growing ethnic groups in Columbus. So while a nonstop to London may generate only 50 O&D pax, you may have another 100 connecting on to points onward.

 

Also, if does anyone think this is realistic??

 

A Columbus to Europe route is within the realm of possibility, in my opinion. However, as mentioned, it would require a certain guarantee of revenue. The only way I could see a nonstop European flight from Columbus is if one or several local companies "subsidizes" the route. The classic example is GlaxoSmithKline and their seat purchase agreement with American Airlines to fly nonstop from Raleigh to London. If, for example, Limited, Battelle, Hexion, and Grief agreed to essentially "purchase" the first class cabin of an AA 752 (4 seats each) to London on a yearly basis, it might work. All have their world HQ's in Central Ohio and have offices in London.

 

I just don't see CMH as having the PREMIUM O&D to guaranty any success. Plus; and this is not to disparage CMH, it is not and probably never will be an international destination.

 

I do have to disagree with that. The airline with which I work is not big to Europe from here, however we board a large majority of traffic between Columbus and Asia. And let me just say, I don't know where the CRAA got the stat that only 36 people on average travel one-way between Columbus and Asia. We board that many people alone to NRT, ICN, SIN, PVG, and PEK on a daily basis, and we're not even the biggest carrier to Asia from CMH (that title has always been Northwest's, now Delta's). You can thank Honda of America, OSU, OU, Battelle, and Hexion for that. We go through priority bag tags quick because of those groups.

Quite right.... In order to make ANY city pair a success, there has to be a certain amount of O&D passengers paying PREMIUM fares.  You can fill an airplane with Skybus level fares, but you'll lose money on EVERY flight.  I drive jets for a living.  You can maximize profit by just selling 4 out of 12 first class seats at the unrestricted fare on some flights.  All other seats are icing on the cake.

 

One last point to make is that even with connections to add to the passenger count, it's O&D that generates revenue.  if a rout can't make it on O&D alone, then all the connecting passengers in the world won't keep it around.  I just don't see CMH as having the PREMIUM O&D to guaranty any success.  Plus; and this is not to disparage CMH, it is not and probably never will be an international destination.

 

A word about Newark:  Continental has an economy of scale PLUS the O&D from NY/NJ/CT to make just about any city pair work.  Cleveland will always play second fiddle to that market

 

That is exactly what I was getting at.  O/D and premium fares.  I don't think there is a market, if there was O7D traffic, an airline would be there NOW and there would be no need to subsidize a route.

We have a large Somali population. How do they get home (provided they do go home seeing as though there is much civil unrest in that part of the world). Let's say they wanted to, how do there flights go? Don't they usually do something like fly to New York, to London, to Ammen Jordan (or maybe even Dubai) and then fly from there to there respective countries? Maybe we could have a direct flight from Columbus to Ammen, Jordan or Dubai.....

 

LOL, it's funny that you mention the Somali population in Columbus. Yes, they go home, and they go home A LOT. The airline I work for probably carries the highest percentage of Somali foreign nationals at CMH, since they all use Ethiopian Airlines through IAD into Addis Ababa. Though the Somali population alone won't garner CMH a nonstop flight across the pond. It could, however, aid in the attempt.

But you've all MISSED the point.  It's YIELD, YIELD, YIELD!!!!!!!!!!!!!  Al plane load of cheap fares WILL NOT generate enough revenue.  Connections DO NOT generate revenue.  What DOES generate revenue is full fare first class/economy fares going point to point.  That's the driver behind airline revenue.

 

CLE-LHR is NOT a subsidized rout.  It stands on its own merits.  And it makes money for Continental.  Also, if Continental had more widebodies, no doubt CLE would be upgraded as there is also significant cargo from CLE which is another revenue leader.

 

 

But you've all MISSED the point.  It's YIELD, YIELD, YIELD!!!!!!!!!!!!!  Al plane load of cheap fares WILL NOT generate enough revenue.

 

You're certainly right. That's why I said if the CRAA, the Columbus Partnership, and the Columbus Chamber could persuade certain area companies to purchase seats in the first class cabin regardless of whether they are used or not (akin to AA at RDU), such a venture could stand a chance.

 

Connections DO NOT generate revenue. 

 

This is true to an extent. The contribution factor of a connecting flight into a hub is an important measure to the quality of connecting traffic coming in from a certain city. There are certain hub-to-spoke flights that exist and are specifically timed purely to capture high yield connecting traffic. For example, looks at RDU-CLT on USAirways. There's no way those 9 daily flights (7 of which are on mainline) carry a high percentage of O&D traffic. But the contribution factor to flights out of the CLT hub has to be incredible in order to maintain such a schedule on such a short flight. That and USAirways (Piedmont) has always been a strong player in the region, so I'm sure part of the reason their schedule exists like that is to protect their market share.

 

CLE-LHR is NOT a subsidized rout.  It stands on its own merits.  And it makes money for Continental.  Also, if Continental had more widebodies, no doubt CLE would be upgraded as there is also significant cargo from CLE which is another revenue leader.

 

No one ever said it was.

Forget Int'l service, I'd like to see service to the west coast, specifically SFO and LAX.  I can't beleive a city this size can't support at least one daily to each city, probably SAN too.  Is the O&D really that bad?  Not sure who would fly it.  I'd have to guess UA or AA.  Probably not DL/NW and surely not WN and FL.  I know airlines have cut back, but CMH has never really had west coast service except for a few short stints on DL (and SX).  Any hope for service ever?

Forget Int'l service, I'd like to see service to the west coast, specifically SFO and LAX.  I can't beleive a city this size can't support at least one daily to each city, probably SAN too.  Is the O&D really that bad?  Not sure who would fly it.  I'd have to guess UA or AA.  Probably not DL/NW and surely not WN and FL.  I know airlines have cut back, but CMH has never really had west coast service except for a few short stints on DL (and SX).  Any hope for service ever?

 

America West closed up shop.  That should have been a big lightbulb and even when others carriers moved in after AM dehubbed, they too have cut back.  I don't think Columbus has the O&D business traffic.  As said here, A, F, Y, J and Z fares are what make a route profittable.  I don't think Columbus is a High Fare market.  It's a third tier city when it comes to air travel.

Forget Int'l service, I'd like to see service to the west coast, specifically SFO and LAX.

 

I couldn't agree more. The O&D certainly exists to maintain a nonstop to at least LAX, however it's still a market pair that's just marginally doable. We're in the same boat as cities such as Raleigh and Hartford when it comes to nonstop service to the West Coast. The demand is there, however the stage lengths are so long that it's really hard to make these city pairs work for a non-hub carrier. Factor in that all 3 have a decent level of low fare competition and it makes it even harder to secure the yield necessary, despite all 3 being relatively high yield markets.

 

Not sure who would fly it.  I'd have to guess UA or AA.  Probably not DL/NW and surely not WN and FL.  I know airlines have cut back, but CMH has never really had west coast service except for a few short stints on DL (and SX).  Any hope for service ever?

 

Actually CMH has had service to LAX for about two decades. Before DL and SX, America West flew the route. Before HP, USAir flew CMH-LAX daily.

 

As for which airline could attempt CMH-LAX now, the only one I could picture would be Delta. Delta maintains a sizeable presence in CMH, especially now that they've merged with NW. Likewise in LAX, Delta has inherited nonstops to NRT and HNL, as well as commenced their much-discussed SYD service, all three of which were not present when Delta attempted a connecting hub in LAX a few years ago. As the economy improves and Delta is able to utilize NW domestic aircraft better, specifically the A319, the airline's economics should improve to allow them to attempt CMH-LAX once again.

 

Of course, we are talking about the airline industry, where logic and thorough thinking are after thoughts, so I could be way off on this. ;)

 

America West closed up shop.  That should have been a big lightbulb and even when others carriers moved in after AM dehubbed, they too have cut back.

 

Yes, however those cutbacks you mention occured when airlines were slashing service industry-wide. All airports faced some pretty daunting cuts, and of course CMH was not spared. Other route discontinuations, such as CMH-LAS on HP/US, were more due to cutback on the other end, not due to a faltering CMH market. 2008 was not a pretty year for the airline industry as a whole.

 

Also, just a quick note, America West was "HP"; AM is AeroMexico.

 

I don't think Columbus is a High Fare market.  It's a third tier city when it comes to air travel.

 

Ah, "think" being the operative word. You should see us board the morning flights out of here, or check out the upgrade list on our evening mainliners. Your mind would change pretty quickly :).

 

Also, I wouldn't necessarily talk about CMH. Our second morning departure out of CLE today left with only 6 revenue pax out of 24 in the first class cabin. That's on a Thursday before a holiday weekend. That's just embarassing.

it's not that embarassing considering a deep recession.  Plus you must also consider that if those six paid a full fare that's much better than a full 24 that were upgraded after paying coach fares. 

 

As I've said, I fly for a living.  Even out of ATL (my "base") we sometimes go out empty or nearly empty in first.

^I think he was saying in comparison to CMH.  Maybe not though.  It sounds like his airline does pretty well here. 

 

CMH Downtown-

I had no idea that US flew CMH-LAX nonstop.  That's interesting.  Does SFO being a hub for UA give them any chance at adding CMH-SFO or would there not be enough pax connecting there to anyplace they couldn't get to via DEN?  My guess is DEN does enough for them and anyone wanting to go to SFO just connects there.  I was actually hoping FL may do a little focus city action here, but they've since decided to expand MKE and add some metal to PIT and IND. 

There is some cool additional insight straight from David Whitaker (Vice President, Business Development, Columbus Regional Airport Authority) on ColumbusUnderground here:

 

http://www.columbusunderground.com/port-columbus-wants-international-flights/comment-page-1#comment-90121

pax?

 

O&D?

Read the columbus underground post.  I'm sorry, but how is CMH going to land a flight to Asia, even when the 787 comes online?  I assume that's the smaller long range plane Mr. Whitacre spoke of.  What airline would dedicate such a long flight to CMH?  Maybe I'm missing something.  It would be great for the region, but not even Cincy (a hub/former hub?) has flights to Asia.  Nor Cleveland that I know of.

CMH flights to Europe/Asia/South America/Oceana are pipe dreams much like in other cities - Indianapolis/Nashville/Kansas City and so forth.  The ONLY reason that CLE and CVG have transatlantic is because they are hub cities PLUS have sufficient passengers flying point to point on those routes in addition to the connecting passengers on either end.

 

NO airline is going to canibalize their hubs to fly a marginal rout - subsidized or not.  Raleigh is one of those exceptions because you have a few concentrated companies flying to from RDU to THE SAME DESTINATION - LHR.  Another thing to consider in this case is that the route is a leftover from American's hub there. 

 

Delta began flying a subsidized PIT-CDG this year but it's anyones guess what will happen when the subsidy expires OR if Delta determines that it can better utilize the aircraft on a different rout.

HI MD88.  I was trying to understand what you meant when you said that connecting flights do not add revenue, especially since the hub and spoke system that has arisen in the post-CAB era, depends on them.  How would a flight from Cleveland to London differ in the airline's accounting from a two segment ticket say Grand Rapids to Cleveland to London.  I had thought that Continental's chop of their 2008 expansion, and more, and the loss of connecting traffic it represented would hurt the potential for international flights here, but maybe that is not correct.  By the way, I am not trying to be critical, I just want to understand how this works.  Thanks

 

Also, didn't Continental shut down the CLE-LHR flight "early?"  Is Cleveland not perceived as a good place to transfer to Europe?  There would seem to be enough city pairs contributing feed to make the CLE-LHR flight work, but maybe travellers prefer Newark?  After all, you can schedule all the the connecting flights in the world, but if no one books them, it fails.  Do you know the percentage of O-D vs connecting traffic at CLE and how it compares with other hubs?

Most recent data I could find is from 2003: www.airlinedata.com/apts

 

CLE O&D 69.7% Conn 30.3%

CMH O&D 95.3% Conn 4.7%

CVG O&D 21.2% Conn 78.8% (obviously way different today with Delta cuts)

DTW O&D 49.4% Conn 50.6%

IND O&D 96.6% Conn 3.4%

CLE-LHR was cut somewhat early because the carrier from which Continental leased the LHR slot wanted it back.  I don't know if you are aware, but LHR is a "slot" controlled airport.  Continental originally purchased five slots to LHR.  Three from EWR and two from IAH.  Due to the economic downturn, a carrier serving LHR was willing to "lease" a slot to Continental for the summer.  As summer progressed and the bottom line improved for the other carrier (I'm sorry I don't recall the name) they approached Continental about getting it back early.  It isn't that ClE is not a good place to connect transatlantic it's also because Continental has a HUGE international operation from EWR.  Any flight to Europe from CLE canibalizes EWR and its economy of scale since CLE and EWR cater to much the same connecting market.

 

As far as the percentage of O&D vs. conections, a hub airport will always have a greater percentage of connections than O&D.  That's the purpose of a hub.

 

And of course, connections generate revenue, but my point is that EVERY flight must be able to stand alone on its O&D in terms of revenue.  If I have an airplane that seats 24 in first class and 150 in coach, a certain percentage of that revenue mix must be O&D and be able to support the city pair  Airline yield management is complicated and not only takes fares in to consideration, but also cargo, landing fees, fuel, etc.

pax?

 

O&D?

 

pax is travel jargon for passengers, while O&D refers to "origins and destinations" as distinct from travelers who arrive or depart from an airport on the way to another destination ("conn", or "connections").

Port Columbus to Raleigh market nixed

Business First of Columbus

Wednesday, September 23, 2009

 

A large-scale flight restructuring plan from the parent of American Airlines won’t mean a change in the number of daily flights the carrier runs out of Port Columbus International Airport, but will cost service to one market altogether.  Flight changes set for next year will add two flights and cut two at Port Columbus run by American Airlines. 

 

That includes ending American’s only daily flight between Columbus and Raleigh-Durham International Airport and its sole Columbus-to-Boston flight.  Delta Air Lines runs three daily flights to Boston out of Port Columbus, but American is the only carrier to serve Raleigh, meaning Columbus will lose the market altogether April 1 if another carrier doesn’t step up.  American also announced plans to add twice-daily service between New York’s John F. Kennedy International Airport and Columbus.  With Delta running two flights to JFK, the change will double the daily flights at Port Columbus to JFK.

 

Full story at http://columbus.bizjournals.com/columbus/stories/2009/09/21/daily20.html?ana=tt3245

Port Columbus passenger decline slows

August total 3.8 percent lower than a year ago

Tuesday,  September 29, 2009 - 4:24 PM

By Marla Matzer Rose, The Columbus Dispatch

 

Port Columbus passenger activity continued to decline in August, but the rate slowed.  A total of 545,096 passengers used the airport last month, 3.8 percent fewer than in August 2008.  That is an improvement over the double-digit declines seen early this year when the previous year's numbers included Skybus Airlines passengers.  The modest decrease for August is in line with national trends, said David Whitaker, vice president of business development for Port Columbus,

 

Full story at http://www.dispatch.com/live/content/business/stories/2009/09/29/port_columbus_aug.html?sid=101

CLE-LHR was cut somewhat early because the carrier from which Continental leased the LHR slot wanted it back. I don't know if you are aware, but LHR is a "slot" controlled airport. Continental originally purchased five slots to LHR. Three from EWR and two from IAH. Due to the economic downturn, a carrier serving LHR was willing to "lease" a slot to Continental for the summer. As summer progressed and the bottom line improved for the other carrier (I'm sorry I don't recall the name) they approached Continental about getting it back early. It isn't that ClE is not a good place to connect transatlantic it's also because Continental has a HUGE international operation from EWR. Any flight to Europe from CLE canibalizes EWR and its economy of scale since CLE and EWR cater to much the same connecting market.

 

As far as the percentage of O&D vs. conections, a hub airport will always have a greater percentage of connections than O&D. That's the purpose of a hub.

 

And of course, connections generate revenue, but my point is that EVERY flight must be able to stand alone on its O&D in terms of revenue. If I have an airplane that seats 24 in first class and 150 in coach, a certain percentage of that revenue mix must be O&D and be able to support the city pair Airline yield management is complicated and not only takes fares in to consideration, but also cargo, landing fees, fuel, etc.

 

I don't know if this is 100% true. CLE-LGW also used to get cut early and London Gatwick was (and still is) begging for service. I never heard of this "mystery carrier" wanting the slot back. I still think this "secret airline" business is more CO BS.

 

That being said, there is good news. The CLE-LHR "summer slot" is already locked in for 2010. I doubt CO would have guaranteed this service for next year without making money on it this year.

 

As for CMH, they certainly can apply for international service but they're going to need a sizable multi-million dollar subsidy to operate it...like Delta's PIT-CDG or British Airways' BWI-LHR. The questions become, who will subsidize it from the region? Is it worth it?

CLE-LHR was cut somewhat early because the carrier from which Continental leased the LHR slot wanted it back. I don't know if you are aware, but LHR is a "slot" controlled airport. Continental originally purchased five slots to LHR. Three from EWR and two from IAH. Due to the economic downturn, a carrier serving LHR was willing to "lease" a slot to Continental for the summer. As summer progressed and the bottom line improved for the other carrier (I'm sorry I don't recall the name) they approached Continental about getting it back early. It isn't that ClE is not a good place to connect transatlantic it's also because Continental has a HUGE international operation from EWR. Any flight to Europe from CLE canibalizes EWR and its economy of scale since CLE and EWR cater to much the same connecting market.

 

As far as the percentage of O&D vs. conections, a hub airport will always have a greater percentage of connections than O&D. That's the purpose of a hub.

 

And of course, connections generate revenue, but my point is that EVERY flight must be able to stand alone on its O&D in terms of revenue. If I have an airplane that seats 24 in first class and 150 in coach, a certain percentage of that revenue mix must be O&D and be able to support the city pair Airline yield management is complicated and not only takes fares in to consideration, but also cargo, landing fees, fuel, etc.

 

I don't know if this is 100% true. CLE-LGW also used to get cut early and London Gatwick was (and still is) begging for service. I never heard of this "mystery carrier" wanting the slot back. I still think this "secret airline" business is more CO BS.

 

That being said, there is good news. The CLE-LHR "summer slot" is already locked in for 2010. I doubt CO would have guaranteed this service for next year without making money on it this year.

 

As for CMH, they certainly can apply for international service but they're going to need a sizable multi-million dollar subsidy to operate it...like Delta's PIT-CDG or British Airways' BWI-LHR. The questions become, who will subsidize it from the region? Is it worth it?

 

Actually, that IS the reason that LHR was cut early this year.  Recall that CLE-LGW was NOT going to be flown this year since CO moved their EWR and IAH flights to LHR.  A slot opened up and CO "leased" it from another tho' nameless carrier.

 

LGW was most always cut early because it was largly empty after Labor Day anyway.  LGW was primarily O&D and the tourist crowd.  Your connection options at LGW are very limited unlike LHR where you can connect to anywhere in the world.

 

Again, as I've already written, one of the reasons that transatlantic doesn't exist in CLE during the winter is that CO doesn't have enough widebody metal to go around to three hubs.  The 757's that CO uses on CLE-LHR frequently required a tech stop for fuel when flying westbound during the winter when they were used on LGW-CLE.  That stop really cuts into revenue  Also, 757's don't have the cargo capacity of a widebody.  CO actually ships airfreight from CLE to EWR via truck!  That's a lot of lost revenue.  The new 787, when it enters service, is exactly what a CLE-transatlantic route calls for.  Enough premium seats and enough lift and range to make even a limited winter service profitable.

Port Columbus gets OK for stimulus funds

Business First of Columbus

Friday, October 2, 2009, 11:18am EDT

 

The Department of Homeland Security has approved releasing more than $35 million from the federal stimulus program to Port Columbus International Airport for a new baggage screening system.  The appropriation will cover nearly 70 percent of the $50.9 million project, which when completed will allow passengers to check their bags with ticket agents and then walk to their flights. 

 

Currently, travelers must bring the luggage for examination to screening stations, which moved front-and-center at Port Columbus’ main concourse following the Sept. 11, 2001, terrorist attacks.  An airport official told Columbus Business First this week that the new behind-the-scenes screening system is expected to boost security, alleviate passenger congestion at the terminal and speed travelers’ check-in efforts.

 

Full story at http://columbus.bizjournals.com/columbus/stories/2009/09/28/daily42.html

From http://www.columbusunderground.com/cmh-adds-southwest-flights-best-buy-express

 

CMH Adds Southwest Flights & Best Buy Express

 

Two different bits of news emerged from Port Columbus today.  First, Southwest Airlines announced on their blog that they are now booking flights for Spring 2010, which adds extra daily flights to Baltimore, Chicago Midway, and Tampa, as well as new Saturday flights to Tampa and Orlando.

 

The second bit of news came by way of a CMH press release which announced that Port Columbus will be adding new retail options in the form of two kiosks branded as a Best Buy Express ZoomShop and a Rosetta Stone ZoomShop.  The Best Buy kiosk will sell everything from iPods to digital cameras to headphones to handheld video games for travelers on the go.

I noticed that WN added more cities to its DEN fortress.  Yet, no CMH.  Can anyone tell me why?  Even Detroit got service.  Terrible.  We need someone to expand a LITTLE here.  All this hub flying sucks. 

Airport sweetens airline pact

Revenue sharing to be part of new five-year agreement

Monday,  October 26, 2009 - 2:55 AM

By Marla Matzer Rose, The Columbus Dispatch

 

Port Columbus is making it a little easier for airlines to keep serving the local market.  It has reached a tentative agreement with the airlines on a new five-year operating and lease pact that offers a little something extra -- a revenue-sharing agreement.  The agreement replaces the previous five-year pact, which is set to expire at the end of the year.  The agreement, which is up for approval by the board of the Columbus Regional Airport Authority at its meeting on Tuesday, keeps rates on items such as rent and landing fees essentially flat compared with the current deal.

 

The revenue-sharing aspect would come from a stream of airport income that can be applied to reduce the airlines' costs, assuming certain benchmarks are met.  Those include payments to the airport capital reserve fund and other financial requirements.  David Whitaker, vice president of business development for the airport said the airport projects that there could be a pool of $1 million to draw on for 2010.  Of that, 75 percent could be shared with the airlines.

 

Full story at http://www.dispatch.com/live/content/business/stories/2009/10/26/airline_agreement.ART_ART_10-26-09_A8_C4FF9UK.html?sid=101

Port Columbus traffic up for 1st time in 18 months

Business First of Columbus - by Matt Burns

Tuesday, October 27, 2009, 5:32pm

 

Passenger traffic at Port Columbus International Airport has crept past last year’s pace for the first time in a year and a half.  As for what that means for the airport’s future amid a tentative economic recovery, the Columbus Regional Airport Authority isn’t waving the victory flag just yet. 

 

The authority late Tuesday said 517,221 passengers used the airport last month, up 3 percent from 502,027 passengers in the same period a year ago.  Angie Tabor, a spokeswoman for the airport authority, said the bump in traffic wasn’t the result of an anomaly, as often seen in the spring when the Easter holiday shifts months.  Rather, it’s the next step in what became a promising trend in traffic this year.

 

Full story at http://columbus.bizjournals.com/columbus/stories/2009/10/26/daily15.html?ana=tt3245

Port Columbus October traffic nudges down

Business First of Columbus

Tuesday, November 24, 2009

 

Passenger traffic in October at Port Columbus International airport fell slightly, following an encouraging September when the airport recorded its first increase in the previous 18 months.  The Columbus Regional Airport Authority said late Tuesday that 546,779 passengers used the airport last month, down 0.9 percent from 551,861 last October.  That follows a 3 percent gain in September traffic, the first year-over-year increase since March 2008.  Airport officials are calling the results last month a sign of stabilization after 17 consecutive months of declines before September, as the recession and the absence of defunct discount carrier Skybus Airlines Inc. took their toll on travel volume.

 

Full story at http://columbus.bizjournals.com/columbus/stories/2009/11/23/daily16.html

Port Columbus will get $90.5 million for new runway

Thursday,  December 17, 2009 - 11:02 AM

By Marla Matzer Rose

THE COLUMBUS DISPATCH

 

Port Columbus will receive a $90.5 million grant from the Federal Aviation Administration to help pay for construction of a new south runway, expected to open in 2013.  The runway will replace the existing south runway, portions of which date to 1928, and create space for a new terminal building planned for sometime in the mid-2020s.

 

The airport plans to pay for the balance of the runway project, estimated at $160 million, from the $4.50 per person passenger facility charge levied by Port Columbus.  David Whitaker, vice president of business development for the airport authority, said the design phase of the project is expected to take all of 2010 to complete, with construction expected to begin in 2011.

 

More at http://www.dispatch.com/live/content/business/stories/2009/12/17/port-columbus-gets-money-for-runway.html?sid=101

Ugh! I just don't understand the continued investment in the airline sector.

Ugh! I just don't understand the continued investment in the airline sector.

 

Why, are aircraft and airlines going to vanish?

Ugh! I just don't understand the continued investment in the airline sector.

 

Why, are aircraft and airlines going to vanish?

 

Some airlines might, but I don't see the need for expansion in/at CMN