"Baton Rouge Metro Airport weathering downturn"

Tuesday, August 12, 2003

BR's Metro Airport weathering downturn 
By CHAD CALDER
The Baton Rouge (LA) Advocate


Baton Rouge Metro Airport has held up fairly well in the post-9-11 era,
Executive Director Anthony Marino said, though boardings at midyear were
down 3.3 percent to 180,500 from a year ago.

Efforts are under way to get added services and the airport continues to
make progress in competition with New Orleans International and against
discount airlines -- the so-called "Southwest Effect," he said.

Marino said 67 percent of the local market was driving to New Orleans in
1995. By 1999, the airport had it down to 33 percent and to 22.5 percent by
last year.

"Will it ever get to zero?" he asked. "Probably not. Will it get lower? We
hope so."

In addition to low-cost carriers such as Southwest Airlines, AirTran and
JetBlue, Baton Rouge has to deal with airlines that lower their fares in New
Orleans to compete in that market but then keep the Baton Rouge fares the
same. That prices the local airport out of the competition.

The airport has a full-time staff member making sure this doesn't happen.

"Considering market migration has not increased, that says something for our
program," Marino said.

Also, the airport was able to get its last carrier using propeller planes to
switch to jets.

Marino said the airport's biggest challenge is trying to win service from
airlines that often have other cities throwing millions of dollars at them.

"It became even more competitive after 9-11," Marino said.

Wichita, Kan., just gave $8 million to Airtran. Jackson, Miss., gave $1
million to Southwest Airlines. Tallahassee and Pensacola, Fla., and Des
Moines, Iowa, have also recently given multimillion-dollar packages to
airlines, Marino said.

All this increases the yield, the industry term for the amount of money per
mile, that the airline makes.

Metro Airport has applied for a $500,000 federal grant, which it would add
to $200,000 from the state and $300,000 of the airport's money to make a
pitch for new service. Marino said he could not disclose which airline the
airport is going after.

"I think we've got a very good shot, with these carriers, of landing one of
them," he said.

He said the airport has approached Delta and Northwest with some incentive
money for more service and should know something soon.

Marino said the incentive packages get airlines' attention, but since it's a
one-time infusion of cash, "eventually the market's going to have to make it
on its own."

He pointed out Baton Rouge lost out last year to Melbourne, Fla., in trying
to get Spirit Airlines. Spirit pulled out a short time later after the
market never materialized.

Marino said Delta and Northwest have picked up the slack at Metro Airport
from the loss of U.S. Airways in May, but pointed out the airport still lost
a competitive fare and fliers lost a choice.

Marino said cargo operations that will open next summer will help make Baton
Rouge Metro a full-service airport.

Marino said he is proud that the airport's six-year, $161 million renovation
project hasn't cost the city-parish anything and highlights the need to get
creative in finding funding for economic development initiatives. There were
13 funding sources for the terminal alone, he said.

"Politically, everyone has worked together and spread the costs out," he
said.

Attached Photo:

Travelers arriving at Baton Rouge Metro Airport wait for their luggage at
the baggage claim facility in November. While airline boardings are down,
Director Anthony Marino said the airport has held up fairly well.

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