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Airline Capacity Shrinks to WWII Levels

Seattle: Harder to get to

What’s on the decline in travel today?
Airline capacity, which have now reached the travel industry’s deepest pull back since World War II. According to Bloomberg News‘ report, when we finish 2009, airline capacity will be 6.8 percent less than it was in December 2008. That makes the drop in passengers the [...]

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Written by Travel News on September 12th, 2009 with no comments.
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Seattle: Harder to get to

Seattle: Harder to get to

What’s on the decline in today?

Airline capacity, which have now reached the industry’s deepest pull back since World War II. According to Bloomberg News‘ report, when we finish 2009, airline capacity will be 6.8 percent less than it was in December 2008. That makes the drop in passengers the year after the 9-11 attacks and 1974 oil-price shock look puny. And we probably haven’t seen the end of the disappearing seats, either.

“There’s no point putting seats in the air if people don’t want to fly,”  David Swierenga, president of aviation consulting firm AeroEcon told Bloomberg.. “A double-digit cut, more than 10 percent, in capacity is called for.” After all, our six biggest carriers saw a 4.2 percent decline in passengers in August — the 15th month in a row the numbers have been backpedaling. Can you blame him for this conclusion?

“If you have less capacity, that generally allows a bit more pricing power,”  Kevin Krone, the marketing chief for Dallas-based Southwest, also told the reporter. “It got trumped this year because the economy was so bad. Those sort of offset each other.” Southwest announced today that it would reduce flights on 92 routes between January 9 and March 12.

Wave good-by to service between Albuquerque and Portland, Manchester, N.H., and Phoenix, Kansas City and Seattle. And that’s after the budget king of the skies sent up six percent fewer flights this year than it did in 2008.

However, the situation does spawn some  good news: Fewer flights equal less congestion. The Department of Transportation revealed July was the best month in six years for on-time arrivals, when a whopping 77.6 percent of planes hit their deadlines. Hawaiian Airlines actually put up 93.6 percent performance.

But some things will always remain the same. New York City’s three airports continue to be the most congested in the country.

Photography: dherrera_96 (Flickr)

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Written by Travel News on September 12th, 2009 with no comments.
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