BWI Airport outperforms nation

Daily Record, The (Baltimore), Aug 22, 2002 by Andrea Cecil

The good news is Baltimore-Washington International Airport performed better than the national average during the last 12 months in terms of passenger traffic. The bad news is Maryland's leading airport suffered a 7.1 percent decline, compared to the nation's 12.5 percent dip.

Southwest Airlines, BWI's largest carrier, was largely responsible for the relatively strong showing, as it increased its service 6.2 percent at BWI during the airport's fiscal year 2002, which ended June 30, according to Melanie Miller, an airport spokeswoman. In all, Southwest accounts for 41 percent of BWI's travelers.

Unlike most major carriers of late, the Dallas-based airline has managed to post profits by offering lower fares and cutting costs.

Joseph Pezzimenti, an airport analyst for Standard & Poor's in New York, said Southwest has the highest credit rating of all the airlines.

"Southwest is in exceptional shape," he said. "By definition of that, [BWI is] a low-cost airport. If you were to look at those airports that offer a significant amount of Southwest service, you would find that they are all low-cost airports."

It's a stark comparison to what other air carriers are experiencing.

On Tuesday, Houston, Texas-based Continental Airlines announced it would reduce domestic jet capacity by 17 percent and ground 11 of its planes.

The airline, which is the nation's fifth largest, said it would impose a $20 fee for domestic paper tickets, eliminate discounts on certain low-fare categories and rebid for many supplier contracts. Continental also said it would save $85,000 by not offering plastic knives with breakfast trays in coach, though the utensil will be available upon request.

The move followed bankruptcy filings by U.S. Airways and Vanguard Airlines, as well as a warning from the nation's second-largest carrier, United Airlines, that it could do the same. American Airlines announced last week it would cut costs by eliminating 7,000 jobs.

Yesterday, U.S. Airways additionally said it would eliminate about 200 flights, or 13 percent of its daily schedule, and take 31 airplanes out of service by the end of the year.

But at BWI, Continental carried about 745,000 passengers -- a 3.13 percent service increase -- during the 2002 fiscal year, and held 3.87 percent of its market during the same period, Miller said.

U.S. Airways, she said, saw a 45 percent decrease in passengers during the same period at BWI, largely due to the elimination of its MetroJet service; United saw a 3.43 percent increase.

American Airlines has seen a 35 percent increase in passengers at the airport during this fiscal year, while Delta Airlines has seen a 12 percent increase, Miller said.

"These are numbers unheard of for other airports in the nation," she said.

Tara Hamilton, spokeswoman for the Metropolitan Washington Airports Authority, which operates both Washington-area airports, said she could not provide statistics as to how specific airlines were faring at Ronald Reagan Washington National Airport or at Dulles International Airport.

National, which was ordered closed by the government for three weeks following the terrorist attacks, is only operating at 84 percent of its capacity, Hamilton said.

Neither National nor Dulles offers Southwest service.

"As the credit strength of airlines weakens, they're going to be more sensitive in those airports that have a high-cost structure," Pezzimenti said. "That's probably why you're seeing more activity and a stronger growth at BWI as opposed to other airports."

More than 19.2 million travelers flew through BWI during the 2002 fiscal year, representing a 7.1 percent decrease from the last fiscal year, the airport reported yesterday. Nationally, passenger totals declined 12.5 percent during the same period, according to the Air Transport Association.

In June, more than 1.78 million travelers used BWI airport -- a 9 percent slump compared to the same month last year. But, the number was not as high as the 10.5 percent decrease in travel nationwide in June, the transport association said.

The Maryland Aviation Administration released a study two months ago, showing that BWI generated $6.5 billion in revenue in 2000 -- up from $5.3 billion two years earlier. The report also pointed to a 12 percent increase in passengers from 1999 to 2000, when 19.6 million passengers were using the airport.

The increase made BWI the fastest-growing airport in the country, according to the Airports Council International, an aviation trade organization.

Miller said the airport hopes to increase its passenger number once its $1.8 billion expansion is completed in 2006.