Reduced fares cause for celebration

In these tough economic times, businesses are looking for every break they can get. Many Northern Kentucky and Greater Cincinnati companies recently breathed a sigh of relief when Delta Air Lines 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.

“We welcome the news regarding Delta’s reduced air fare structure and we appreciate this improvement in our air service offerings,” said Dan Tobergte, President & CEO of Northern Kentucky Tri-ED, the lead economic development organization responsible for business attraction, creation and retention in Boone, Campbell and Kenton Counties. “We know of the challenges in the air service industry and we support Delta’s efforts to assist us in the growth and development of the entire Cincinnati MSA.”

It's a move that many of the businesses along Interstate 275 in Northern Kentucky applauded as a crucial step 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 America, located minutes from the Northern Kentucky-based airport, need to move people fast around the globe, and the international airport is the way to do it.

“It is no secret that all companies are taking measures to reduce costs and realize travel efficiencies,” said Warner Allen, who heads up External Affairs/Public Relations for Toyota Boshoku America. “The Cincinnati/Northern Kentucky International Airport (CVG) was one of the major drivers in the decision to locate in Northern Kentucky.  Reduced air fares are very important as we continue meeting the needs of our national and international customers.”

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 Cincinnati/Northern Kentucky International Airport 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 Boshoku America 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 a two-hour or less driving time to five (5) 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 encourage the merged Delta Air Lines and Northwest Airlines, the world’s largest air line, to reduce fares 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 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 Moormann, Cincinnati USA Region vice president in charge of Economic Development.

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.

“This is a time for optimism, especially for the convention and tourism industry in Northern Kentucky and Cincinnati with these new fares," said Tom Caradonio, President/CEO of the Northern Kentucky Convention & Visitors Bureau. "We have found the inbound and outbound fares to be challenging in the past.  This is a welcome development."

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," stated Glenn Hauenstein, Delta's executive vice president for network planning and revenue management was quoted as saying.

Many have speculated on just how long this fare structure will be in place.  “Delta informed us that this is not a ‘fare sale’ with a definite beginning and ending date,” added Dan Tobergte. “These fares and the current level of service will remain in place as long as the demand is present.  Therefore, it is up to us as a business community to stop driving elsewhere to fly out of the area and to encourage all of our clients and associates to fly into and out of CVG whenever possible.”