Aviation Chief: Expanding Air Service Getting Tougher

By John Nolan, Dayton Daily News, Ohio

Apr. 9–DAYTON — The failure of Skybus Airlines and ATA Airlines, and the money challenges facing the surviving carriers, will make it harder for Dayton International Airport to attract additional airlines to the market, the city’s aviation director said.

“Although bookings are strong in the airline business, they are worried about what’s going to happen a few months down the road. Everybody is in the capacity-cutting mode, but not entering new markets or getting into new destinations,” said Iftikhar Ahmad, who oversees the city-owned airport and often meets with airlines in efforts to attract additional service.

High fuel prices, the slowing economy and stiff competition have taken a toll on airlines. Last week, Columbus-based Skybus and Indianapolis-based ATA ceased operations. Skybus, a low-cost carrier, said the fuel price increases and economic slowdown caused its demise. ATA, a charter airline, said its failure resulted from the loss of a major contract to serve the U.S. military.

Neither Skybus, which attracted attention last year by offering $10 seats on some flights, nor ATA served Dayton. But their shutdown, along with that of Hawaii’s Aloha Airlines all in the same week, had a chilling impact on the airline industry, Ahmad said in an interview on Wednesday, April 9.

Skybus’ low fares were designed to appeal to people inclined to make a pleasure trip on impulse. As such, it wasn’t much of a threat to Dayton’s air service, which has direct routes to Chicago, Atlanta, Dallas, Detroit, Denver, Orlando, Fla., and the East Coast, destinations that are especially appealing to the business traveler, said Michael Boyd, president of the Boyd Group, an airline industry consultant based in Evergreen, Colo.

“It won’t have any effect at all on Dayton, to speak of,” Boyd said.

“There are no major air service shortfalls at Dayton.”

The Dayton Area Chamber of Commerce works with the airport administration on efforts to improve Dayton’s air service. The chamber’s recent survey of member business organizations showed the destinations they consider most important are those that airlines flying from Dayton are already serving, said Phil Parker, the chamber’s president and chief executive officer.

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