Economics Control Fate

Wednesday, February 10, 2010

The lack of large commercial carrier service at the Moore County Airport (SOP) has everything to do with airline economics and nothing to do with the airport name.

From 1937-1978, airline routes, fares and existence were regulated by the Civil Aeronautics Board. The price of being awarded profitable long-haul routes between larger cities was serving smaller cities on short-haul, less profitable routes.

Deregulation was supposed to deliver more competition and lower fares. It did, but many airlines couldn’t compete, went bankrupt or were bought/merged into larger carriers.

Today no airline will establish a route/serve a community unless it can do so profitably, or at least break even feeding passengers into one of its hubs and connecting flights.

Piedmont DC-3 service post World War II is irrelevant in 2010. USAir regional service was a victim of changing airline economics and a lack of demand, even using small, cheap turboprops. Delta/Atlantic Southeast Airlines serving SOP in expensive regional jets was based on revenue guarantees made to Delta and failed due to lack of demand, at a substantial cost to the Airport Authority — hence pilots and aircraft owners based at/using SOP.

Any airline trying to serve Moore County would have to be cost competitive with driving/limo service to RDU.

A regional, even using small equipment and “fly for food” pilots, can’t do that. It’s no small reason why the regional safety record isn’t exemplary (think Colgan accident near Buffalo).

It isn’t the name of the airport that matters, it’s the economics!

Charles Mirman

Pinehurst

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n1025v 2 years, 3 months ago

Mr Mirman,

Just so you know Atlantic Southeast Airlines is not a Regional Airline. Atlantic Southeast Airlines is a National Airline.

N1025V

bigD 2 years, 3 months ago

I agree. The airlines cannot afford to lose money on such a small route. Airlines are already operating at a loss for many bigger routes. I always loved the idea of Delta right here in my back yard but always flew from Raleigh because of cost considerations.

As a side note. During the McCrory campaign I had an opportunity to meet with a US Air executive (I cant remember name or title but I recall him being very high up in the organization). He explained that US Air failed on its attempt at Pinehurst because the plane flying in and out of Pinehurst could only carry a few golf bags. The rest of the golf bags had to be trucked to the area and arrived long after the flight. He did express an interest in another attempt if they could get the stars lined up.

OldPilot 2 years, 3 months ago

N1025V. Suggest you check Atlantic Southeast Airlines own website where ASA proudly states "ASA is now a part of the world's largest regional airline alliance". ASA flies for Delta with routes feeding Atlanta and United with limited routes, both in the eastern part of the country. It is hardly a "national" airline.