United States Department of Transportation
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Commercial aviation : factors affecting efforts to improve air service at small community airports
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2003-01-01
[PDF-4.47 MB]
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Abstract:The nation’s small communities face a range of fundamental economic
challenges in obtaining and retaining the commercial airline service they
desire or making their existing service more attractive to potential
passengers. The smallest of these communities, usually served by nonhub
airports, typically lack the population base and level of economic activity
that would generate sufficient passenger demand to make them profitable
to air carriers. Larger communities in this group, often served by small hub
airports, may have enough people to support some level of air service, but not enough to attract additional carriers to compete at that community
airport, thereby providing greater choice and possibly lower fares.
Further, if a small community is located within driving distance of a larger
airport, this already-limited demand is often diluted because passengers
may drive to the larger airport for better service or cheaper fares. These
challenges are exacerbated by an airline industry in economic turmoil.
Wall Street analysts have estimated projected industry losses approaching
$8 billion in 2002. Some carriers have taken significant steps to cut costs
and/or minimize losses by reducing service. At some small communities,
this can mean eliminating service altogether.
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