Reduced fares cause for celebration

In these tough economic times, businesses are looking for every break they can get. Northern Kentucky’s roster of international companies recently breathed an extraordinary sigh of relief when Delta Airlines announced significant reductions in fares into and out of the Cincinnati/Northern Kentucky International Airport (CVG).

The new fares will cut prices from 5 to 60 percent, and affect about 80 percent of air travelers, according to Delta who controls 91 percent of the market at CVG.

It’s a move that many of the businesses along Interstate 275 in Northern Kentucky applauded as crucial for the continued competitiveness of the region. The airport has long been a major component of recruiting and retaining international companies in both Northern Kentucky and Cincinnati. Companies like Japan-based Toyota Boshoku, located minutes from the Hebron-based airport, need to move people fast around the globe, and the international airport is the way to do it.

For WILD Flavors, Inc, another global company with over 400 employees, accessibility was especially important in choosing to locate to Northern Kentucky. In 1994, Dr. Hans-Peter Wild purchased the local F&C International, Inc., changed the name and moved the facility closer to the airport. “To ensure the future growth of the company, he invested in the construction of a new state-of-the-art facility near the Northern Kentucky-Greater Cincinnati Airport, allowing for the convenience of travel for customers and visitors,” Donna L. Hansee, WILD’s Senior Director of Marketing, states.

For companies like WILD and Toyota Boshuku, the recent fare reductions come at a time when an increasing number of their employees were driving to Louisville, Dayton, Columbus or Indianapolis to take cheaper flights out of the region. The Greater Cincinnati region is unique in that it is the only airport in the nation that exists within driving time to five other airports. CVG has for several quarters been ranked as the most expensive airport in the country. That’s why economic development advocates in both Northern Kentucky and Cincinnati worked diligently to ensure the airport remained a driver of job growth and creation. Especially advantageous for travelers are the airport’s direct flights to Europe, in contrast to nearby airports like Columbus where they first must stop in Canada.

Steve Stevens, president, Northern Kentucky Chamber of Commerce expresses hope that the lower fares will enable local business travelers to travel more at a time when corporate travel budgets are being slashed. “We are encouraged that the airport will regain travelers who have sought lower airfares at other regional airports,” Stevens says.

Other community leaders agree. “It’s critically important to economic development and business retention efforts. Since the 1980s, we’ve seen the number of international businesses here grow by more than 300. In that same time in Columbus, they’ve grown by around 100,” said Doug Moorman, Cincinnati USA Region vice president in charge of Economic Development.

The fare reductions are indeed a positive and welcome change for the airport which is a key economic driver for the region. Delta estimates its annual economic impact to the region is roughly $5 billion with nearly 13,000 full-time and part-time workers to its credit.

The reductions affect round-trip flights for advanced purchase leisure and business travel fares, as well as for walk up fares. It will include flights to cities in Florida, the Northeast and the West Coast.
The new fares are intended to make Delta more competitive in the region while encouraging travelers to fly out of Cincinnati instead of “wasting time and money driving to neighboring airports,” Glenn Hausenstein, Delta’s executive vice president for network planning and revenue management was quoted as saying.

In August, Delta rolled out a test program in the Northern Kentucky airport with the highest ticket price set at USD$499 for economy flights in the lower 48 US states, and USD$599 for first class.

The pilot program also eliminated Saturday night stay requirements and dropped ticket-change fees to USD$50.

Feoshia Henderson is a former Cincinnati and Northern Kentucky daily news reporter. She now runs her own freelance writing business and blogs about the Cincinnati suburbs at www.cincyburb.blogspot.com.