Competition reaps lower airfares in Milwaukee

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Despite the chilling affect the Great Recession has had on consumer spending and traveling, Milwaukee’s General Mitchell International Airport served a record number of passengers in September, and airlines are increasing service at the airport.

The newest arrival is Dallas-based Southwest Airlines, which recently started service in Milwaukee to Baltimore, Kansas City, Las Vegas, Orlando, Phoenix and Tampa Bay.

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Southwest is a discount airline and is expected to attract customers from outside of the Milwaukee area, including travelers from Illinois, and is also expected to drive down prices charged by competing airlines at Mitchell.

“This truly is a win-win for both business and leisure travelers,” said Milwaukee County Supervisor Michael Mayo Sr., the chairman of the County Board’s Transportation, Public Works and Transit Committee. “With this low-fare service to six cities, I am sure even more people from the entire region and beyond will choose (Mitchell) for their travel needs.”

Meanwhile, another discount airline, Orlando-based AirTran Airways, a subsidiary of AirTran Holdings Inc., continues to expand its service at Mitchell. AirTran tried unsuccessfully in 2007 to take over Midwest Airlines to establish a hub in Milwaukee. Since its takeover offer was rejected by Midwest, AirTran has slowly grown its presence in Milwaukee and now offers flights from Mitchell to 24 destinations.

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AirTran recently announced it will add service from Milwaukee to Dallas-Fort Worth International Airport in April. AirTran also announced a new marketing partnership with SkyWest Airlines, which will provide regional jet service between Mitchell and Pittsburgh; St. Louis; Indianapolis; Des Moines, Iowa; Omaha, Neb.; and Akron, Ohio.

Meanwhile, Midwest Airlines is again increasing service in Milwaukee after making cutbacks during the recession. Midwest Airlines recently announced that it will launch service next year between Milwaukee and St. Louis. Earlier this year, Midwest Airlines resumed service from Milwaukee to Los Angeles and to Louisville, Ky.

“These new flights and new markets clearly help fuel the economic engine of this entire region, Mitchell Airport,” said Milwaukee County Executive Scott Walker.

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Midwest Airlines is adding more service now that it has been purchased by Indianapolis-based Republic Airways Holdings. To make Midwest Airlines more competitive, Republic is replacing its aircraft with smaller, more efficient aircraft and replacing its crew members with less expensive crews. Midwest now offers direct flights from Milwaukee to 32 destinations and remains the market leader at Mitchell, although its market share has decreased from increased competition and its own cutbacks during the recession.

The increased competition at the airport is driving down airfare prices in Milwaukee.

“The average airfare out of Milwaukee was lower than 75 other U.S. airports, according to recently released U.S. Department of Transportation statistics for the second quarter of 2009,” said airport director Barry Bateman “Mitchell’s average fare was about $44 less than (Chicago) O’Hare’s and $28 less than the nation’s average fare.”

The September total of 648,779 passengers at Mitchell was an increase of 16.85 percent over last September’s 555,234 passengers, and ahead of the previous record September, in 2007, at 597,102 passengers. The additional service provided by the airlines is a big reason for that. There were 19 percent more airline seats into and out of Milwaukee this September compared to last September.

“The number of flights is increasing, and airfares out of Mitchell are getting even more competitive,” Walker said. “Passengers throughout Wisconsin and the northern Chicago suburbs are comparing airfares and finding they can save a lot of money flying out of the Milwaukee airport.”

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