Jumpin’ in Pittsburgh
Posted on 06/23/2008
I am in Pittsburgh, PA, today. Did you know that that this fine city was home to Mr. Roger’s Neighborhood? I didn’t until Mr. Feely made a call on our group this morning. He brought a couple of his puppets too. It was a bit of a trip down memory lane…but I didn’t sing the theme song (many around me did).
Well anyway, I’m not in Pittsburgh to learn about its former celebrities; I’m here with Elizabeth at the annual ACI-NA JumpStart conference. Yes I am speed dating with airlines again, though the mood is a bit somber this year.
This whole fuel crisis has the industry in a bit of a panic. I thought Bob Fornaro, Chairman and CEO of AirTran Airways and keynote speaker this morning, had a thoughtful perspective on things. First he said that the industry is indeed in crisis but that every past crisis in the airline industry is followed by a period of adaptation to the new industry environment. He said the goal is to survive the crisis by prudent management and keeping costs low.We very well could be in the midst of an industry evolution.
All the industry folks that presented today agreed that at $135 barrel for oil, capacity must drop out of the market or airlines are going to drop out of the business. A few small carriers already have liquidated like SkyBus and ATA. Yikes!
Well, we at CAK are going to keep focused on the fundamentals too. Keeping our costs low and our visibility high will help us survive this latest and potentially longest lasting crisis in the airline industry.
Wish us luck with our airline dates!
Comments
add a comment: 06/26/2008 10:01 AM
Ok folks, I am back from Pittsburgh ready to report on my trip. First, the Hilton Downtown is a utter mess. Literally every floor is under construction. Elizabeth wondered why the front desk staff didn't issue a respirator to every gust upon check-in. That would have certainly helped minimize the dust in my lungs upon checkout.
Anyway, the rest of the conference was wonderful. We were able to hook up with 12 airlines and chat up CAK and Cleveland+. I got a little good news too! AirTran Airways is bringing back our 3rd New York LaGuardia round trip flight in August. Plus, they are adding a second Saturday frequency to Orlando starting in September. Yippee!!!!
The Ohio Airports also worked together to showcase our beautiful state. We hosted a breakfast for airlines (omelet station and all) and we had 14 rsvps. It was really a great way to get our airline partners to "Think Ohio First!"
I also found out that Network 2009 is not going to be at the DFW Airport after all! Boy, was that welcome news. I hang at an airport all day...I don't need to hang at thiers too (though I am sure it is very nice). Instead, we will be at the Renaissance Worthington Hotel in Ft. Worth. Whew!
My sense in the wake of the conference buzz is that the US domestic avation market is going to survive...but that it will be smaller and fares will be higher especially if oil continues to climb. There are going to be winners and losers (airlines and airports). We hope and will work extremely hard to be winners.
We will stay focused on the fundamentals: low costs, excellent customer service, building brand equity, and looking for windows of opportunity.
On a final note, Kevin Mitchell and team recently painted a "doom and gloom" picture of our industry and the impacts of soaring fuel prices on the airline industry. If everything they predict were to indeed happen, it would be a sorry state of affairs indeed. In his report, Mitchell listed CAK as one of 150 airports that could be significantly impacted by the current fuel crisis. Apparently, he hasn't talked to any of our airline partners. They tell me a very different story...and though I don't think CAK will be totally "flight reduction free", I think we are going to survive just fine, thank you very much.
David Field: (www://flightglobal.com/ab) 06/26/2008 09:36 AM
Hi Kristie,
And greetings from one blogger to another. Mine's called Left Field. I hope you'll come explore my neighborhood! I see you mentioned our route-planning confeence, Network. In March 09 it will be in Fort Worth.
We have a piece from a low-fare airline conference whee AirTan's Matt Klein talks about some of the issues facing low-cost carriers. It's on the Airline Business homepage.
I'm glad to hear Fred is back.
David Field
Airline Business magazine
