JumpStart Wrap-up
Ok folks, I am back from Pittsburgh ready to report on my trip. First, the Hilton Downtown is an 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 theirs 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 aviation 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 regarding the potential 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.
Jumpin’ in Pittsburgh
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!
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Whew! I am finally close to being caught up after a 2 ½ day trip to the AAA Annual meeting in Hollywood, Florida.
I was recently appointed to the board of directors of our local Summit county/ Akron AAA- a 110,000 member club with great staff and dynamic board. I wanted to go to the Annual Meeting so I could get to know lots of travel folks from throughout the country (and world actually- I’ve been invited to the AAA- Australia that is- Club for a little site visit). Plus, I wanted to learn more about what makes one of the most venerable brands in the U.S. tick.
So, off I went on an AirTran Airways flight to Ft. Lauderdale (smooth connections in ATL and friendly flight attendants). The Westin was fabulous and the production of the meeting was top notch. Nothing though, held a candle to the excellent line-up of guest speakers.
Don Tapscott, author of Wikinomics: How Mass Collaboration Changes Everything, talked about the next evolution (underway now) in how business and communication is done and it’s all about collaboration. It was a powerful and provocative talk about how things are changing and how organizations could be left behind if they aren’t thinking strategically about how to connect with others and unleash the power of many.
Michael Gallis, a regional economic development expert, demonstrated how our country could be left in China’s dust if our national leadership doesn’t start thinking strategically about our aging and disconnected transportation infrastructure. Yikes! I know he’s right. It takes years/ decades to build things (airports, roads, intermodal ports, etc…) and instead of looking at the future movement of people and goods as an national priority, our elected officials in Washington fund projects that may or may not help position America as an economic leader in the future. To me, this is a mission critical task perfectly suited for the skilled advocacy team at AAA. Sound the alarm, peeps!
Lastly, I really enjoyed George Will’s take on politics, aging and health care. I tend to lean slightly left of center politically, and even so, I found his arguments compelling.
Ok, it’s time for me to stop, before you get too bored. Let me just wrap up by saying that I am totally jazzed about serving on the AAA Akron board and that exciting things are on the horizon for Club members.
Enjoy the holiday weekend!
What about dem Continental Cuts?
Wow, have the airlines been making the news or what? The latest announcement that impacts Cleveland+/ Northeastern Ohio is of course, Continental Airlines’ recent cut back in service to their Cleveland Hopkins hub.
Before I go into that, let me just say that the entire airline industry (and therefore airports and communities too) is hugely impacted by soaring oil/ fuel prices. Many industry pundits have said that this could be worse and last longer than the 9/11 tragedy that also shocked the industry. The playbook is being rewritten because air carriers didn’t expect fuel prices to continue to climb to historically high levels. No one did. The Washington Post writes today that the soaring fuel costs are actually helping the airline industry act rationally; cutting unprofitable routes, reducing thier workforce and raising prices. It is an interesting point of view.
So, back to Cleveland+…I think we are going to be ok. Continental’s recent announcement is generally a rollback of their expansion announced about six months ago. So, it seems to me that Hopkins is pretty much back to where they were last year and that’s not too shabby.
At CAK, AirTran decided not to resume flying nonstop to Las Vegas three times weekly. Although we are disappointed, travelers can still easily reach Las Vegas on any of our carriers with an easy one-stop connection. Also, passenger traffic was up 5.5 percent in May 2008 compared to 2007 and that is thrilling! Thanks to recent additions aboard US Airways to Philadelphia and Charlotte, we are hanging in there. Frontier is adding a third trip to Denver at the end of the month as well.
No one knows what is next but more announcements are sure to come, and no community in the US is immune from the cutbacks. We need to hang in there, and fight for our fare (how do you like that play on words :)) share of the airline pie…however big that may be moving forward.
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