Hub consolidations leave air travelers with fewer options

In the newest round of airline mergers, some airports will lose a significant chunk of scheduled service and, in some cases, their regional hub status.

For travelers in cities such as Cleveland and Memphis, Tenn., that means getting from here to there may soon be more costly and more complicated.

“Business travelers bear the brunt of the impact from hub downsizing,” said Kevin Mitchell of the Business Travel Coalition. “They travel to call on customers, prospective customers and governments in smaller cities. Fewer frequencies to these cities will result in higher prices, less productive travel and fewer options when there are air travel disruptions.”

In March, Delta Air Lines — which completed a merger with Northwest in 2008 — announced plans to cut about 25 percent of its current service at Memphis International Airport, which had been one of Northwest Airlines' three major hubs. Airline officials described the move as a necessary cost-cutting measure.

The cuts, to be completed by the end of the year, mean that many business and leisure passengers who enjoyed nonstop flights to and from Memphis will now likely be making a connecting stop at Delta’s major hub in Atlanta, about 300 miles away. “Fares for passengers who previously just transited in Memphis won’t change that much,” said Tom Reich of aviation consulting firm Air Service Partners. “But those customers from the smaller regional markets will be hurt.”

Memphis currently serves about 9.5 million passengers a year, said Larry Cox, president and CEO of the Memphis-Shelby County Airport Authority. He expects an 8 percent to 10 percent drop in passengers as a result of Delta’s cuts.

“Delta did what it had to do — eliminate unprofitable flying from Memphis,” said Cox. “We don’t want to lose that service, but it’s understandable in the economy.”

Reich predicts Southwest Airlines, which recently acquired AirTran, will add a few new flights in Memphis, but he believes Delta will continue cutting capacity in Memphis. “It will be a continual unwinding of the hub, maybe over four or five years. That’s a typical strategy. It took US Airways that long in Pittsburgh from the first announcement of cuts until the hub was gone.”

Airline consolidations US Airways pulled its hub out of Pittsburgh International Airport in 2004. Following the airline's move, passenger traffic dipped from a 1997 peak of more than 20.7 million passengers to about 13.3 million in 2004 and, by 2009, to just over 8 million. The airport closed its commuter terminal and put up walls at the ends of the A and B concourses so areas of the terminal didn’t look abandoned.

Fire & Ice Offers Creative Jewelry and Collect

Fire & Ice Offers Creative Jewelry and Collectibles at Second Location in the AIRM® at BWI

BALTIMORE, June 6, 2011 - AIRM® USA,the leading airport concessions developer in North America and operator of the AIRM at Baltimore/Washington International Thurgood Marshall Airport (BWI), is pleased to announce the opening of the airport’s second Fire & Ice location, offering its original collections of hand-crafted jewelry and gems, art glass, fossil specimen, woods, crystal formations and more created by artists across the United States and Canada.  This new unit is located on Concourse D.

(Logo: http://photos.prnewswire.com/prnh/20100802/NE44129LOGO )

“From stunning art glass to unique carvings and beautiful jewelry and gems, Fire & Ice is a perfect solution for travelers looking for great gifts on-the-go,” said Brett Kelly, vice president of AIRM Maryland.  “At the AIRM, we are pleased to announce the opening of this second unit, giving travelers even greater access to the store’s vast array of collectibles.” 

With a passion for the natural sciences and art glass, Fire & Ice seeks to preserve traditional techniques from all corners of the world, working to support cultures threatened by modern pressures to assimilate.  This drives the company to continue seeking out new examples of “Fascinating…Creative….Unique.”  Since 1980, Fire & Ice has expanded to 12 locations reaching from Natick, Mass. to Tyson’s Corner, Va. 

The original Fire & Ice unit at BWI opened in May of 2005.  Located in the Concourse A/B Food Court, this unit was recognized with a national award for “Best Airport Retail Store Design.”

For more information on AIRM USA, visit http://www.airmall.com . 

About AIRM® USA

AIRM® USA is the developer and manager of the retail, food and beverage operations at Pittsburgh International Airport, Boston Logan International Airport (Terminals B and E), Baltimore/Washington International Thurgood Marshall Airport, and Cleveland Hopkins International Airport.  The leading airport concessions model in North America, AIRM USA continues to boast the highest per-passenger spend on the continent and consistently receives accolades for innovation and customer service.  AIRM USA is owned by Prospect Capital Corporation, a leading New York investment company founded in 1988.  For more information on AIRM USA, visit http://www.airmall.com .

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