Airport considers low-cost carriers for NW Arkansas

When travel agent Dee Dee Cullipher books a Northwest Arkansas client’s flight to Chicago, she often starts by checking fares at Tulsa International Airport.

Yes, that’s a two- hour drive each way for most Northwest Arkansas residents. But Cullipher, who works at Destinations in Fayetteville, knows they can save a bundle.

A weekday round trip to Chicago was advertised at $684 this week out of Tulsa’s airport, according to an airline booking website. Make the same flight from Northwest Arkansas Regional Airport near Bentonville, and a passenger would pay $1,136.

“I’ve got several corporate clients who go back and forth to Chicago,” Cullipher said. “Fares have been as low as $300 from Tulsa, but over $1,100 from here.”

Northwest Arkansas Regional Airport is losing airline passengers to surrounding airports that offer cheaper fares, say Northwest Arkansas business leaders and airport executives. That’s

why the Northwest Arkansas Council, made up of business and civic leaders, along with airport officials have redoubled their efforts to lure a daily low-cost airline carrier to the airport at Highfill. Studies show low-cost carriers tend to drive down fares for all passengers, as other airlines cut prices to compete.

“Attracting a daily low-cost carrier is one of our top tasks this year,” said Rob Smith, a Northwest Arkansas Council communications and policy specialist who spoke on the issue at a Northwest Arkansas Regional Airport Authority meeting recently.

Low-cost airline service in Richmond, Va., Pittsburgh, Wichita, Kan., and Panama City, Fla., sent average airfares lower at their airports, Smith’s study showed.

Average fare decreases ranged from $40 to $100. After low-cost carrier Southwest Airlines started providing service to Panama City, average fares dropped from $583 in 2009 to $393 in 2012, the study showed.

Northwest Arkansas Regional Airport passengers averaged $529 per round trip in the first nine months of 2012. The average fare nationally was $375, according to the study.

Tulsa’s airport is the biggest drain on Northwest Arkansas fliers, taking about 26 percent. Little Rock, Fort Smith and Branson each take less than 5 percent. Tulsa, Branson and Little Rock are served by Southwest Airlines.

Low-cost Allegiant Airlines flies to two destinations from Northwest Arkansas Regional, with flights to Las Vegas and Orlando, Fla. The airline also is resuming service in June to Los Angeles. Other airlines that fly from Northwest Arkansas are American, Delta, US Airways and United.

The airport needs daily low-cost flights, Smith said, and Allegiant doesn’t fly daily. Businesses leaders surveyed by Smith’s group expressed frustration concerning high fares from Northwest Arkansas. They also identified cities where they thought more airline competition is needed, including Chicago, Atlanta, Dallas and New York. The Northwest Arkansas Council surveyed employers who represent 63,135 flights from Northwest Arkansas Regional Airport per year, or 11.7 percent of all outbound flights in 2012.

Airport executives have been meeting frequently with low-cost carriers. Northwest Arkansas Regional Airport Director Kelly Johnson has meetings scheduled this week with low-cost Frontier Airlines. Airport officials also have talked with Southwest, JetBlue and other smaller carriers. “No one’s told us no,” Johnson said.

The airport also has help from a $950,000 federal grant to attract another carrier. Low-cost carriers often ask for revenue guarantees to start as well as other incentives, said airport Executive Director Scott Van Laningham. Another issue is getting area businesses to promise they’ll switch some fliers to a new, low-cost carrier, Smith said.

Typically, other airlines match low-cost carrier fares. If business and leisure travelers stay with a major airline — drawn by frequent-flier mile awards and other benefits — low-cost carriers sometimes become frustrated and pull out of the market, Smith said. Then fares go back up.

“Our survey definitely showed companies are willing to commit a portion of their travelers to a low-cost carrier,” he said.

Travel agents like Cullipher say they’ve wanted another low-cost airline “since the day they opened” Northwest Arkansas Regional Airport in 1998. But the need has become more urgent recently, she said.

“In the last couple of years especially it’s gotten less competitive out of here,” Cullipher said. “When you have a lowcost carrier, it brings everybody’s ticket prices down.”