Photography by Yrsina Colangelo
Mergers, tough economic conditions and Europe-US Open Skies were the top themes at this year's Network USA route planning event held in San Diego from 2-4 March
Will they or won't they? That was the dominant topic of conversation at the eighth Network USA route planning event that took place in San Diego in early March. The question: Will Delta Air Lines and Northwest Airlines merge?
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| Thella Bowens, president, San Diego Country Regionals Airport Authority |
Even at the time of Network, which is organised by Airline Business and gathers airline planners and airport marketers to discuss new route opportunities to and from the Americas, the chances of a deal seemed to be receding. But as panellist Holly Hegeman, the editor of US airline financial website Planebusiness.com, observed, whereas last year's discussions about mergers were more speculative, worsening economic conditions and record fuel prices are putting the industry under increased stress. "It's different this time, it's a survivalist game," she said.
The possibility of a Delta-Northwest combination, which many believe will inevitably lead to other combinations like United and Continental, is of profound interest to everyone that attends Network. Of the 130 airports represented, most if not all count these carriers as customers. And all have taken a hard look at what mergers mean to them. The impact could be in terms of lost frequencies if there is route duplication between potential partners. But there could also be opportunities, especially for low-cost players seeking to fill a void left by a major.
Amid this uncertainty, airports are continuing with business as usual, seeking to promote themselves in the best way possible and to ensure their value locally is appreciated. "It is essential to engage the business community," said Thella Bowens, president of the San Diego County Regional Airport Authority, which hosted Network 2008. "You have to make sure the community is really aware of the service you provide and realise its value."
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| Iftikhar Ahmad, airport director, Dayton International Airport |
This engagement was essential at Hartford Bradley International to win service last year to Amsterdam with Northwest, said airport consultant Dean Hill. In addition, the airport had to prove there was sufficient demand as data showed only 40 people per day travelled from the immediate Hartford region to Amsterdam. It knew many more around Hartford were driving to nearby Boston or New York but these figures were hard to quantify. "The trick was showing these people were going to Europe and to get an airline to take a chance on it," said Hill.
Another necessity for airports is some form of price incentive scheme. "They are now a given," said one airport executive. For Iftikhar Ahmad, airport director at Dayton International, an aggressive incentives package is useful, and he has one, but more creative ideas might also play their part. The airport and the local Chamber of Commerce, for example, offer business travellers free use of a business centre, he said.
The battle to win more service will get tougher this year as the domestic market outlook turns gloomy. Brook Sorem, planning director at Southwest Airlines, typifies the mood: "We are very cautious about the current status of the industry and fully expect there to be a recession."
A year from now, the ninth Network USA will take place in Southwest's hometown of Dallas. By then the make-up of the US airline industry could be very different, but for now few are willing to make concrete predictions of what it could look like.
The date and venue for next year's Network USA have now been announced. The event will provide its usual winning combination of high-level conferences and meetings.
Dates 1-3 March 2009
Venue Dallas, Texas
Event organiser Airline Business
Conference manager Jane Cartwright
Tel +44 20 8652 3659
Website flightglobal.com/networkusa
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| Brook Sorem, Southwest (left) and Florian Dehne, Lufthansa |
Source: Airline Business
