Aviation
As flights are cut, airfares go up, at least at first
NEW YORK – In the past eight years, as the airline industry experienced a flurry of mergers, escalating fuel costs and a global recession, many airports that experienced deep cuts in service have seen steep spikes in fares.
A USA Today Network analysis of the top 100 airports in the 48 contiguous states found that on average, those that lost at least a quarter of their domestic seats since the start of 2005 saw nearly twice the average fare increase.
That trend worries some industry watchers as American Airlines heads to court Monday to get what will likely be the final approval needed to close its merger with US Airways.
Past mergers have resulted in the new partners shedding some hubs and cutting flights at some airports as they focus on more profitable routes and portals.
“You see flight reductions, personnel reductions, service reductions and fare increases,” says Brent Bowen, dean of the College of Aviation at Embry-Riddle Aeronautical University’s Prescott, Ariz., campus. “When these airlines merge and combine … you’ll see former hubs not being hubs anymore.”
Merger imminent
Representatives of American Airlines, which has been under bankruptcy protection since November 2011, are scheduled to head to bankruptcy court Monday in New York City to get approval for the company’s restructuring plan. A green light would clear the way for it to finalize its merger with US Airways, a deal that will create the largest airline in the world.
The two airlines reached a settlement this month with the Department of Justice, which sued to block the tie-up but backed down when the airlines agreed to give up dozens of take-off and landing slots at New York’s LaGuardia and Ronald Reagan Washington National airports.
American and US Airways said they would maintain their hubs in Los Angeles, Charlotte, New York’s JFK, Miami, Chicago O’Hare, Philadelphia and Phoenix for three years. They have committed to keep their merged headquarters in Dallas-Fort Worth for the same time period.
The cutbacks in service that have hit most of the top 100 airports in the past eight years reflect an industry that’s been transformed as it’s tried to stay afloat. Onetime rivals have merged, allowing them to focus on bigger, more profitable hubs, and airlines have become extremely disciplined, careful not to fly more seats in a market than they can profitably fill.
“That’s what consolidation has allowed them to do, because they can generate the same amount of revenue doing less of the flying,” says William Swelbar, a research engineer with MIT’s International Center for Air Transportation.
Fewer flights in a market generally means higher ticket prices.
“Inevitably, fares get squeezed, and they rise,” says Henry Harteveldt, a travel analyst with Hudson Crossing.
Flights disappear
Cincinnati remains a Delta hub, but its domestic flights have shrunk in the wake of Delta declaring bankruptcy in 2005 and then merging three years later with Northwest, which had an overlapping hub in Detroit.
USA Today’s research found that Cincinnati/Northern Kentucky International Airport saw its seats plummet 80 percent between the first quarter of 2005 and the first quarter of 2013, as Delta slashed flights and the airport lost service from Northwest as well as Continental, which merged with United in 2010.
Fares spiked 26 percent during that eight-year period, to an average ticket price of $519 — the highest of the 100 airports reviewed.
“Delta was using Cincinnati in the same way Northwest used Detroit,” Swelbar says. “They consolidated those (traffic) flows around Detroit.”
Indianapolis International Airport saw domestic fares increase 23 percent between the first quarters of 2005 and 2013, and its domestic seats plunged 39 percent.
The airport suffered deep cuts in air service and saw fares escalate after ATA, a dominant carrier there, went into bankruptcy and eventually folded. Cutbacks continued when Northwest shrank its Indianapolis mini-hub after joining forces with Delta.
High jet fuel prices, a key reason airfares increase, also had an effect in Indianapolis. But this year ticket prices finally started to stabilize and several carriers are adding new routes, including non-stop service between Indianapolis and Los Angeles, San Francisco and Trenton, N.J.
The agreement by American and US Airways to give up slots at LaGuardia and Reagan National will reduce some service between those airports and smaller cities. But they might add flights between those communities and their other hubs, such as Philadelphia, Harteveldt says. Additional service could lead to lower fares, and wherever American and US Airways exit, lower-cost carriers could enter.
When all is said and done, some industry experts say, airline tickets can only surge so high.
“Airlines know they can push fares only so far,” Harteveldt says.x
Aviation
Accra Bound Aircraft Loses Engine Mid-Air After Departing NAIA, Abuja
An Abuja-Accra flight experienced technical difficulties mid-air on Friday, forcing it to return to Abuja, shortly after departure.
The Nigerian Safety Investigation Board (NSIB) made the disclosure in a statement, adding that it has launched investigation into what it described as a serious accident.
Director, Public Affairs and Family Assistance, NSIB, Bimbo Olawumi Oladeji stated that preliminary investigations revealed the aircraft experienced an engine number two indication issue.
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It was gathered that the aircraft, with registration number 5NKAL which was operating a flight from the Nnamdi Azikiwe Airport, Abuja (DNAA), to Kotoka International Airport, Accra (DGAA).
She explained that four persons were onboard when the incident occurred. The crew immediately requested for a diversion back to Abuja due to the engine indication.
Oladeji added that the crew managed to safely land the aircraft at Abuja Airport at 18:16 UTC.
There were no injuries reported, and all individuals on board are safe.
Aviation
FG Secures 12 Pre-Owned Alpha Jets to Bolster Nigeria’s Air Power
Nigeria has acquired 12 pre-owned Alpha Jets from the French Air Force as part of efforts to enhance the operational capacity of the Nigerian Air Force (NAF).
The deal, facilitated through SOFEMA, a French military and aeronautics company, was announced by Olusegun Dada, Special Assistant to President Bola Tinubu on via X on Thursday.
He said, “All the 12 aircraft are ready for shipping.”
The Alpha Jet, a product of Franco-German collaboration, is a versatile military aircraft designed for light attack and advanced training missions.
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Equipped to carry bombs, rockets, and missiles, the aircraft also features a gun pod for close air support.
The NAF already operates 11 Alpha Jets, but this latest procurement signals a significant boost to its fleet.
Dada also confirmed that the Air Force is expecting 24 M-346FA light attack aircraft, ordered during the administration of former President Muhammadu Buhari.
The first batch of these Italian-made aircraft is expected to arrive early next year.
Air Chief Marshal Hasan Abubakar, the Chief of Air Staff, described the acquisitions as a testament to President Tinubu’s commitment to bolstering the armed forces.
“This renewal of our aircraft fleet reflects the government’s commitment to ensuring the safety and security of Nigerians,” Abubakar said.
The announcement comes on the heels of President Tinubu’s three-day state visit to France, where he met with French President Emmanuel Macron.
The visit, which took place from November 27 to November 30, highlighted deepening ties between the two nations.
To ensure the sustainability of its expanding fleet, the Air Force has proposed establishing a local maintenance hub.
Speaking in October, Abubakar noted that six units of the M-346FA aircraft were already in production, with the initial batch of three expected to be delivered in early 2025. The full fleet is projected to arrive by 2026.
“These developments underscore the importance of creating a domestic support system for the long-term upkeep of our aircraft,” Abubakar added.
Aviation
Festive Season: Aero Contractors Slashes Ticket Prices To N80,000
As the holiday season draws near, Aero Contractors has introduced a minimum ticket price of N80,000 for all local flights.
The move, which will last until January 2024, aims to ease the financial burden on Nigerians amid the high cost of living.
Ado Sanusi, Managing Director of Aero Contractors, made the announcement on Tuesday during a press briefing, describing the fare reduction as a gesture to help Nigerians celebrate Christmas and the New Year without the stress of steep ticket prices.
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Sanusi said, “We understand the economic hardship Nigerians are facing, especially with high ticket prices, and we know the holiday season is nearby.
“In the spirit of Christmas, Aero Contractors has introduced what we call pocket-friendly Christmas prices. These fares, starting at N80,000, will apply to all our destinations, allowing Nigerians to travel without excessive costs.”
As of Tuesday afternoon, an economy class ticket from Lagos to Abuja was priced at N99,643, while business class tickets were being sold for N189,167.
Sanusi further explained that the initiative was designed to make it easier for families to reunite during the holidays.
“This is a way for us, as an organization with a long history of serving Nigerians, to give back to our loyal customers. We want to make it possible for families to meet their loved ones during this festive season without worrying about exorbitant travel costs,” he added.