Top Show Destinations Brace for a Flight Fallout

Airlines can't seem to catch a break – with the price of oil above $140 a barrel (at press time, that is), it's getting more and more expensive to keep planes in the sky these days.

Most major carriers are cutting back on their flight schedules, but convention and visitors bureau officials in the top three U.S. tradeshow cities – Las Vegas, Orlando and Chicago – said they aren't worried and have plans in place just in case it does become a problem.

Chicago-based United Airlines announced it would cut its domestic capacity by up to 17 percent by the end of the year; Dallas-based American Airlines by up to 12 percent. American plans to dump 28 flight departures from Chicago's O'Hare Intl. Airport alone.

US Airways, citing a 90-percent fuel price increase in the past year, announced it would reduce its fourth-quarter mainline capacity by 6 to 8 percent on a year-over-year basis, and it would close down all its nighttime operations in Las Vegas, except for limited service to the East Coast. “Daily departures from Las Vegas, which were as high as 141 during September 2007, will drop to 81 with the Sept. 3 schedule change,” said Morgan Durrant, a US Airways spokeswoman. “The airline's daily departures will drop further, to approximately 74 by the end of 2008, as aircraft are retired from the fleet.”

In other words, by January, US Airways will have half as many flight departures from Las Vegas as it did a year and a half before.

Orlando isn't completely in the clear either with a number of major carriers serving that city, including Delta Air, United, US Airways and AirTran Airways, announcing schedule cuts, with more on the way.

Even with the flight reductions, CVB executives in the three cities said they are prepared to weather the cutback storm.

“Right now, we've had no negative feedback from customers about getting flights into Las Vegas,” said Terry Jicinsky, the Las Vegas Convention & Visitors Authority's senior vice president of marketing, “(though) we do get feedback that costs are increasing.”

In fact, Jicinsky added, some airlines – such as Virgin America, Allegiant Air, Southwest Airlines and WestJet – have even added flights.

If further flight reductions do impact travel to Las Vegas, he said, “we're looking into partnering with charter services.”

During previous down markets, Jicinsky added, charter flight business picked up, in some years accounting for as much as 20 percent of all Las Vegas flights. “Right now, we're at 5 percent,” he said. “(Flying charters) can be done pretty seamlessly. We work with the carriers, as well as tour and charter companies.”

Susan Lomax Greer, director of publicity for the Orlando/Orange County Convention & Visitors Bureau, said the bureau recently partnered with AirTran, offering packages that include airfare, accommodations and attractions.

The Chicago Convention & Tourism Bureau partnered with American Airlines with the same type of arrangement, the only difference being that it is an attempt to lure people to the city during the winter months. Chicago Select, a promotion offering value pricing on air and ground transportation, hotel accommodations, retail and cultural experiences, will be available during the first quarters of 2009, 2010 and 2011.

“As far as we're concerned, business destinations such as Chicago will be affected the least (by the cutbacks),” said CCTB spokeswoman Meghan Risch. “Despite the current economic environment, made more challenging than ever by record oil and jet fuel prices, American Airlines continues to embrace key strategic marketing partnerships such as that with the CCTB.”

Orlando's Greer said of the airline cutbacks, “No concerns have been raised from meeting planners regarding a negative impact on the attendee experience or their attendance, which is how we would most likely hear of any issues. In fact, several shows this year have reported record attendance.”

Like Jicinsky in Las Vegas, Greer noted that some airlines are adding Orlando flights to their schedules, specifically JetBlue, Lufthansa and Aer Lingus.

Natl. Business Travel Assn. President and CEO Kevin Maguire said any impending downturn in airline business is most likely to come from leisure travelers canceling trips, not business travelers.

“It will make leisure destinations suffer more than business destinations,” Maguire said. “That being said, it will make life tougher overall. If there's a decrease in capacity, it's more difficult to get flights.”

He also pointed out that, with fewer flights, any delay or cancellation will make life more difficult for business travelers. “Fewer seats means higher demand means higher costs,” Maguire added.

Las Vegas, Orlando and Chicago may not be raising any red flags yet about the flight cutbacks, but Maguire warned that tougher times were to come since more routes than those already announced are likely to be taken away before the end of the year. “Everyone says it will get worse before it will get better,” he said.