Airport Competition Heats Up As Traffic Falls

Locations in this article:  Baltimore, MD Chicago, IL San Francisco, CA Sydney, Australia

Airport Competition Heats Up as Traffic FallsNew data from the Department of Transportation’s Bureau of Transportation Statistics reveals that of the 50 largest airports in the U.S., only four showed growth in passenger traffic in 2009.

With airports and airlines struggling to fill seats, more and more airports are beginning to compete aggressively for travelers.

So which airports are adding customers and what does it say about the airline industry?

Overall in 2009, passenger traffic fell 5.3%, down to roughly 704 million domestic and international travelers. So the handful of airports that actually posted an increase in traffic greatly outperformed the average.

The airports that actually increased their traffic were Baltimore/Washington, Chicago’s Midway, Milwaukee’s General Mitchell and San Francisco International (SFO), though the increases were relatively small. While Baltimore/Washington, Midway and Milwaukee are all among the nation’s most prominent alternate airports and benefited from increased competition among low-cost carriers.

San Francisco's Golden Gate bridgeMeanwhile, SFO was the only international hub that defied trends, with passenger traffic ticking up slightly to 16 million passengers from 15.8 million the year before. Among the factors providing the boost was an increase in scheduled flights from carriers such as Southwest, Virgin America, JetBlue and United (which dominates SFO with about 40% of its flights).

The rise at SFO coincided with a big drop in traffic at competing airports in Oakland (down 17.1%, the second-worst drop nationwide) and San Jose (down 14.3%, the third-worst nationally). Only Cincinnati, where Delta has been slashing flights as it downgrades a hub, suffered a larger fall in traffic than these airports.

So as competition heats up among airports, especially in markets where there are multiple airports, some airports are trying new tactics to attract travelers.

Find great airports with America’s Best Alternate Airports.

For example, San Francisco International’s new “I Wanna Go Through SFO” campaign aims to highlight the strengths of that airport’s appeal. Spotlighting spacious terminals, a lack of lines, pinball machines, mass transit connections and mayor Gavin Newsom’s megawatt smile among other features, the new YouTube video seems mostly aimed at international travelers.

Plane landing at an airportSFO spokesman Mike McCarron confirmed that while the latest video was designed with international travelers in mind, it highlights features that appeal equally to American travelers.

Milwaukee’s General Mitchell Airport has long done similar promotions aimed at getting Chicago travelers to skip crowded O’Hare and opt for “Chicago’s Third Airport.”

And even Canadian airports are getting in on the act–Edmonton International Airport has launched a “Stop the Calgary Habit” campaign to convince travelers to fly from their local airport instead of driving to the larger Calgary International Airport.

In terms of what this means for air travelers, if airports start competing not just on the number and price of flights, but on services and convenience as well, air travelers could start seeing much-needed improvements.

By Matthew Calcara for PeterGreenberg.com.

Related links: USA Today, YouTube- I Wanna Go Through SFO, Associated Press

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