"LA/ONT competing with lower-cost airports"

Sunday, June 3, 2012

LA/ONT competing with lower-cost airports 
By Liset Marquez
The Contra Costa (CA) Times


ONTARIO - With summer travel getting under way, Inland Empire residents most
likely will be tempted to bypass LA/Ontario International Airport to get a
good deal. 

For the third straight quarter, Long Beach Airport has recorded the lowest
average airfares in California and ranked No. 2 nationally, behind Atlantic
City, N.J. 

According to the U.S. Department of Transportation's latest quarterly
report, the average round-trip domestic fare out of Long Beach was $229 in
the final quarter of 2011. That ranks well below the national average of
$368 over the same span. 

Airport Director Mario Rodriguez said Long Beach's ability to provide low
costs to its carriers is passed along to customers. 

"Our primary focus is customer service, and keeping costs low is a part of
that," Rodriguez said. 

That doesn't mean a traveler will necessarily find the best deal flying out
of Long Beach to one of its 14 destinations, the Department of
Transportation report notes. 

A look at the airfares of other Southern California regional airports - ONT,
Burbank Airport, John Wayne Airport - reveals the Inland Empire facility, on
average, offered the third best option for travelers. 

ONT's average ticket price was $327, just above Long Beach and Burbank,
which averaged $298. ONT was an affordable option only when compared to John
Wayne where tickets prices averaged $359. 

That news is no surprise to Brett Snyder, author of the blog crankyflier.com
and a former airline manager. Ontario has long billed itself as home to
low-cost carriers while John Wayne caters to legacy carriers or airlines
that fly greater distances on average than at ONT. 

And while the report is a good index for consumers, the average fare doesn't
really take into account the length of travel, which could affect pricing,
he said. 

It's one of the reasons Long Beach has fared so well, he said. 

Of the mix of airlines operating at Long Beach, a good portion offer shorter
flights to Oakland or San Francisco. For example, JetBlue, which Snyder said
has the lion's share of flights at Long Beach, has refocused its flights to
be short haul. 

But there are other factors that affect ONT's ability to be competitive in
pricing. 

"ONT is a more expensive airport for airlines to operate out of and airlines
need to make more to make up costs," Snyder said. "Ontario has higher fares
because it has higher costs." 

Typically, low-cost carriers fly out of secondary markets like ONT because
it is cost-efficient. 

Snyder does not like comparing these facilities to Los Angeles International
Airport, but the larger facility does play a part in what's offered at ONT. 

For example, in recent weeks some airlines such as Allegiant have increased
flights out of LAX where in years past ONT might have been a viable choice. 

"Flights profit at a lower levels and can't be supported today because of
the costs," he explained. 

But in Arizona, Allegiant is flying out of Phoenix-Mesa Gateway Airport
rather than Phoenix Sky Harbor International Airport, a bigger market,
because it is more cost-efficient, he said. 

Los Angeles World Airports, which manages both ONT and LAX, says it's a
trend in the airline industry. Carriers are bucking the trend and retreating
to their major hubs in order to save costs. 

ONT started losing flights in the summer 2008 when Southwest Airlines
announced cutbacks. 

In September 2008, ExpressJet Airlines pulled the plug on 22 flights and
JetBlue Airways ended its only flight out of the airport. 

The reasons for the cutbacks were not only operational costs; rising fuel
prices also were a factor, Snyder said. 

Southwest Airlines is the only low-cost carrier serving ONT while the rest,
including Allegiant, serve LAX. 

As for the other airports in the region, Burbank is not an option for
low-cost carriers because the runways are not long enough; at Long Beach
there aren't enough openings, and John Wayne has operation limitations. 

"It's really LAX or ONT," Snyder said. "Why wouldn't you choose LAX? It's
cheaper and close to the population. But Allegiant is a low-cost carrier -
they'd (go to ONT) in a second. A lot is left on the table because of the
higher costs."

 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dcfp/dcboard.php


*****************************************