UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
WASHINGTON, DC
What They're Saying:
Airline Competition Leads to Lower Fares
Sioux Falls Regional Airport Executive Director Mike Marnach: When Frontier Airlines decided to cut its Sioux City flights after just seven months of operation, Marnarch lamented that “with that competition gone, United now has little incentive to keep its prices lower in Sioux Falls.” (“Less competition means United might raise fares out of Sioux Falls,” Argus Leader, 04/24/08)
Greg Dull, VP of Marketing, Orlando Sanford International Airport: When Aer Lingus scheduled nonstop service between Dublin and Orlando International Airport, VP of Marketing Gret Dull noted that “[o]pen skies will open up the market to players who couldn’t get in the game before… It will create more competition, and that’s good for consumers, tourism and Orlando Sanford.” (“Irish eyes smile on Orlando; Aer Lingus starts in October as forerunner of ‘open skies’ pact,” Orlando Business Journal, 04/09/07)
Los Angeles Times: Reporter Peter Pae wrote that Air France’s move to increase the number of nonstop flights between LAX and London’s Heathrow Airport “could intensify competition and lower fares for transatlantic travel.” (“More nonstops from LAX to London due next year.” Los Angeles Times, 10/18/07)
Rocky Mountain News: In a story about Southwest Airlines’ expansion in Denver, reporter Chris Walsh wrote, “Southwest actually helps its competitors attract more passengers, as those airlines lower their fares to compete, stimulating more traffic.” He noted that “[f]ares between Denver and Salt Lake City dropped by 41 percent since [Southwest] arrived [in Denver], for example, while overall passenger traffic on the route jumped nearly 50 percent,” according to the airline. (“Expanding Southwest Airlines making presence felt in Denver; Low-cost carrier adds cities, flights, sees more growth ahead,” Rocky Mountain News, 11/03/07)
Austin American Statesman: Travel columnist Helen Anders noted the effect of competition on airfares: “…there are still great deals to be had, such as multiple under-$200 round-trip fares currently available from Austin to San Francisco and Denver. And make no mistake: those lower fares exist because there are so many airlines competing to fly you to these destinations. Let’s hear it for competition, and let’s hope we see more.” (“Start packing,” Austin American-Statesman, 04/27/08)
Spirit Airlines CEO Ben Baldanza: “We feel confident that the Department [of Transportation] will not allow carriers that dominate an airport to decide who can operate at that airport.” (Press Release, 11/28/07)
Sun Country CEO Shaun Nugent: “If competition isn’t allowed to thrive in congested markets, delays will be the least of our worries – consumers will pay much higher fares.” (Press release, 11/28/07)
Global Aero Logistics CEO Subodh Karnik: “The Department [of Transportation] has long recognized the need to make special accommodations to new entrants and limited incumbents in congested airports to preserve competition.” (“Low-fare carriers are worried about JFK restrictions,” Dallas Morning News, 11/29/07)
AirTran CEO Bob Fornaro: “The Department [of Transportation’s] done a great job fostering new airline competition, so we’re hopeful they won’t buy the largest airlines’ latest attempt to close the door to new low-fare service.” (Press release, 11/28/07)
Virgin America CEO Fred Reid: “If the U.S. had been relying on the big airlines’ trade associations to allocate scarce capacity, there wouldn’t be an AirTran, jetBlue, Spirit, Frontier or Virgin America, and consumers would not see our product innovations and lower fares.” (“Low-fare carriers are worried about JFK restrictions,” Dallas Morning News, 11/29/07)
MAXjet CEO Bill Stockbridge: “We understand why larger airlines would not want to grant us access to important airports like JFK – the better question is why they think the Department [of Transportation], which is interested in promoting and preserving competition, would listen to this nonsense.” (Press release, 11/28/07)
Australia Transport Minister Anthony Albanese: Minister Albanese hailed the launch of V Australia, a new airline offering direct service between Sydney and Los Angeles, saying that “Competition is good for consumers and it’s good for the economy.” Previously, one other airline dominated the direct, trans-Pacific route. V Australia’s launch closely followed the signing of an Open Skies agreement between Australia and the U.S., which was signed by Secretary Mary E. Peters and Australia Prime Minister Kevin Rudd earlier this year. (“Fares plummet as V takes flight.” Geelong Advertiser (Australia), 04/01/08)
Virgin Group Chairman Richard Branson: In launching V Australia, a new airline that will provide cheaper nonstop flights between Sydney and Los Angeles, Branson told the Los Angeles Times that “[t]he Australia route ‘is in dire need of competition and a good shake-up, and that’s a challenge we are always keen to take on’.” (“New Branson airline to offer lower L.A.-to-Sydney fares,” Los Angeles Times, 04/01/08)
AirAsia Bhd’s Group Chief Executive Officer Tony Fernandes: In calling for the opening of Malaysia’s aviation sector, Fernandes said he and his company “are not afraid of competition, we think competition is good for the consumers as that’s what business is all about.” (“Time to open up entire aviation sector: AirAsia’s CEO,” Asia Pulse, 05/06/08)
Tiger Airways CEO Tony Davis: Commenting on how other domestic airlines in Australia have responded to new entrant Tiger Airlines, CEO Tony Davis said “[t]he key, and clear, consequence of Tiger announcing its entry to the domestic market has been that the consumer is set to benefit from more competition and lower fares.” (“Local carriers are chasing their tails,” The Daily Telegraph (Australia), 05/28/07)
Wellington (New Zealand) Regional Chamber of Commerce CEO Charles Finny: In hailing the arrival of a new airline, Pacific Blue, Finny said it’s “entry will enhance competition, lower fares and increase the opportunities to fly into and out of the city.” (“Wellington business ‘welcomes arrival of Pacific Blue,’” The New Zealand Herald, 08/23/07)
Last updated: 5/16/2008