Saturday, May 27, 2006

The future of Mitchell International Airport

There is increasing pressure to expand Mitchell International Airport. Midwest Airlines, though, a major tenant, still is operating at a loss, though there may be a profitable quarter ahead. Airport-building is expensive, the airlines foot the bill, and a lot of places are finding that the desired expansions are cost-prohibitive. From the Wall Street Journal via the Pittsburgh Post-Gazette:

San Jose International and Los Angeles International have both recently scaled back big projects, recognizing that airline tenants can't afford grand schemes. Denver International, which was attacked for its high fees when it opened in 1995, has since cut costs and reduced fees, winning back low-cost Southwest Airlines. And some airports, such as Schiphol and the Cologne Bonn Airport in Germany, have moved ahead by luring new airlines with low operating costs. In the low-margin airline world, a savings of a few dollars per passenger can turn an unprofitable flight into a money-maker, especially among discount airlines charging less than $100 per ticket.


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