The recently approved merger of two major air carriers will cost Savannah its direct service to Washington D.C.’s Reagan National Airport.
American Airlines hasn’t announced when service will end, but an air service consultant under contract with Savannah/Hilton Head International Airport said he expects the flights to be gone by mid-year, if not sooner.
Brad DiFiore, managing partner of Ailevon Air Service Consulting in Atlanta and a consultant to the Savannah Airport Commission, hesitated to blame the loss directly on the merger — or the airline.
Instead, he pointed to the U.S. Department of Justice, which filed suit last summer to block the merger of American and US Airways on the basis that it would undermine competition for commercial air travel.
As part of a Justice Department settlement allowing the merger to go forward, American has agreed to give up slots at National, ending direct flights to and from Savannah as well as 16 other small and mid-sized airports.
The merger, which has followed on the heels of the Delta-Northwest and United-Continental mergers, will make American the world’s largest passenger airline.
Without any forced reduction in flights, it would have controlled nearly 70 percent of the commercial traffic in and out of National. With the flight reductions, it will still be the airport’s majority carrier, controlling 57 percent of commercial flights.
In addition to reducing its presence at National, which opens the door for low-cost carriers, the settlement required the new American to give up some of its spots at Boston Logan International, Chicago O’Hare International, Dallas Love Field, Los Angeles International, Miami International and New York’s LaGuardia Airport.
“I’m pretty sure that, given the choice, American would have preferred to keep its direct Savannah service,” DiFiore said, adding that the flights could come back down the road.
“Over the course of time, American will re-evaluate the situation,” he said. “Could they decide a year from now to drop an underperforming route and add Savannah back in to the mix?
“It’s entirely possible.”
Then there’s JetBlue Airlines, which next week begins service from Savannah to New York’s JFK and Boston’s Logan international airports. JetBlue has been awarded some of the slots American will vacate at Reagan and will begin evaluating how they will use them.
But DiFiore said he would be surprised if Savannah was on their short list.
“At the end of the day, JetBlue will evaluate all the opportunities for those slots,” he said, adding that the fact that Savannah is a brand new market probably puts it at a slight disadvantage.
“JetBlue still has to digest what they’ve already put on their plate for Savannah,” DiFiore said.
In the meantime, DiFiore said fares from Savannah to Reagan could go down as more carriers compete at an airport where American has traditionally dominated the market.
“You may be able to fly for less, but it won’t be a direct connection,” he said.
On a more positive note, DiFiore said the addition of JetBlue could be the catalyst for even more growth at Savannah’s airport.
“JetBlue has made it clear that the Fort Lauderdale market is a priority for them, and Savannah would love to have a South Florida flight,” he said, adding that an expanded American Airlines might also consider adding more Miami flights.
“For JetBlue, I think the key will be how successful Savannah and Hilton Head are in attracting inbound passengers,” he said. “They are confident they have the numbers going to New York and Boston, but if it turns out to be a two-way attraction — and we think there is a lot of potential for inbound tourism — there’s a strong possibility they will look at adding Fort Lauderdale.”
Meanwhile, the airport and JetBlue are getting ready for the carrier’s inaugural flight, which will arrive in Savannah from New York’s JFK the morning of Feb. 13. A number of dignitaries, including Savannah Mayor Edna Jackson. Hilton Head Island Mayor Drew Laughlin and JetBlue Vice President Jeff Goodall, will be on board, said Lori Lynah, Savannah/Hilton Head’s Director of Marketing/Air Service Development.