AirTran: Risks killed HIA deal

Paul

Veteran
Nov 15, 2005
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The letter had been typed, inviting community leaders to a "major air service announcement" at 10 a.m. on Jan. 25.

The leaders were to go to Harrisburg International Airport to hear news that would "make travel into and out of central Pennsylvania more affordable and more comfortable for all business and leisure travelers."

But on Jan. 13 AirTran Airways officials called Fred Testa, HIA's executive director, to cancel the air service they were supposed to begin in May. Testa said he had spent more than four years courting officials at the low-cost carrier, making multiple presentations and bringing them here for a visit last July.

"Courting is putting it mildly. Some would call it stalking," said Kevin Healy, vice president of planning at AirTran. "He's very persistent. He is the reason we were looking at Harrisburg."

In the past AirTran has entered smaller markets and done well, but current conditions make it too risky and expensive, Healy said.

When AirTran entered the Flint, Mich., market in 1998, oil cost about $19 a barrel, and refining costs were about $5 a barrel.

Now oil is about $67 a barrel, and refining costs are about $15 a barrel, he said.

pennlive
 

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