Jackson Hole air travel threatened

Wednesday, July 09, 2008

By Henry Sweets

Jackson Hole, Wyo.-While other small airports in the Rocky Mountain region and the rest of the country struggle this summer with flight reductions and a lack of passengers, business at the Jackson Hole Airport has seen only a modest decline. But airport officials warn that the airport’s current insulation from the struggling air industry might already be crumbling.

Airport director Ray Bishop said the airport is in a “strong financial position,” but it faces a threat with the potential consolidation of major airlines, which could leave Jackson with one less connecting hub like Denver, Salt Lake City or Dallas. He also said that representatives from both Delta and United told him flights that were booked solid last summer now have availability. Though no hard figures were available as of press time, the number of passengers could be more than 10 percent below last year’s numbers, Bishop said.

Bishop said Jackson’s local air industry is much like the valley’s housing market - somewhat immune to national trends - but added that he has seen some light loads that “forebode, perhaps, fewer people traveling.”

Major airlines, such as American, United and Continental, have cut back on flights, raised fuel surcharges and imposed carry-on baggage fees in order to deal with record high fuel prices nationwide. Smaller airports across the country have been hit particularly hard, as many airlines have chosen to significantly slash the number of weekly flights. In addition, with the national economy in a slump, many passengers are choosing to stay home this tourist season.

Denver-based Frontier Airlines, which began offering year-round, low-cost flights out of Jackson this spring, announced just weeks after its first flight in that it would stop Jackson service by early September, and hopefully begin service again next spring or summer.

“Boy, things are shutting down in a hurry [nationwide], but Jackson Hole is not your typical airport,” Bishop said. While other regional and destination airports across the nation are seeing setbacks of as much as 25 to 50 percent in air travelers since last year, Jackson is faring better with reductions of only about 10 percent, with no flights pulled, Bishop said.

Mike Gierau, spokesman for Jackson Hole Air, a nonprofit that works with Jackson businesses to help guarantee service contracts with major airlines through financial incentives, said that this winter’s schedule should be on target. Contracts arranged earlier this spring by his organization are “signed, sealed and delivered” to ensure a steady schedule of flights this winter.

But Gierau, like Bishop, cautioned that with fuel prices and other economic indicators soaring, the good times cannot be guaranteed. The contracts, which are arranged annually and are confidential, were a bit more difficult to make this year due to fuel prices and other concerns, Gierau added. The contracts are not binding, but Gierau seemed confident that this winter’s scheduled flights will pan out because of the strong relationships between airlines and local businesses, and the fact that Jackson Hole will remain a lucrative destination for the airlines.

“The service we ask for is service they can make money on, and frankly that’s difficult to find in their business these days,” Gierau said.

Gierau said the requested number of flights was slightly lower this year because Frontier, who didn’t participate in the program, was expected to take up about 10 to 15 percent of the airport’s traffic. Now that Frontier is gone, there will be fewer flights contracted, but Gierau said that with the changing market, the minor reduction will ensure that airlines don’t lose money on Jackson Hole if fewer passengers are flying here this winter.

Bishop also said that the airlines will be coming this winter, but with a point of caution.
“The contracts [for this winter] are good, but the question is, will people come?” he said.

Only time, and the growing price of fuel, will tell.
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Jackson Hole air travel threatened | Planet JH News Article: General News

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