Tulsa flight reductions include ExpressJet exit

Aug 23, 2008 (Tulsa World - McClatchy-Tribune News Service via COMTEX) -- CAL | Quote | Chart | News | PowerRating -- Aug. 23--After a promising and unique start-up of air service in April 2007, ExpressJet Airlines will make its last flight from Tulsa International Airport on Saturday afternoon.

The Houston-based regional carrier, a unit of Continental Airlines, is ending its daily nonstop service from Tulsa to Albuquerque, San Diego, Ontario/Los Angeles and Sacramento this weekend and in 20 other cities Sept. 2, airline executives said.

ExpressJet ended its daily service between Tulsa, San Antonio and Austin earlier this summer.

"If we had any other choice, we would not take this difficult action," ExpressJet President and CEO Jim Ream said last month. "However, rising fuel prices have made the operation impossible to sustain."

High fuel prices are prompting airlines industrywide to ground planes and cut capacity 8 percent to 15 percent this fall, airport and airline executives say.

Earlier this year, high fuel prices caused Denver-based Frontier Airlines to end its three daily round-trip flights between Tulsa and Denver. Frontier filed for bankruptcy protection from creditors in April.

Frontier's loss apparently is Southwest Airlines' gain. The Dallas-based carrier announced recently that it would begin

twice-daily flights between Tulsa and Denver on Nov. 2.

Southwest announced Thursday, however, that it will eliminate two Tulsa flights in January. Southwest will reduce its three daily round-trips to Phoenix and St. Louis by one flight a day to each city in January, said Southwest spokesman Chris Mainz.

"We still will have two nonstop flights a day to each city," Mainz said. "This is in response to the slow traffic period January through March. Systemwide, we are making just a few changes and it's possible some of these flights will come back after March."

In other Tulsa air service changes, United Airlines will be dropping its popular daily nonstop flight to Los Angeles International Airport on Sept. 2, and Continental Airlines is eliminating its two daily nonstop flights to Cleveland Hopkins International Airport on Sept. 6.

Further out, American Airlines in November is replacing regional jets with mainline jets on two of its nine daily nonstop flights to Dallas-Fort Worth International Airport. American also is replacing three of its four daily mainline flights to Chicago O'Hare International Airport with regional jets in November, said spokesman Tim Smith.

American is not planning any reductions of service in Tulsa, Smith said.

The cutbacks will leave Tulsa International with 69 flights a day in September, a 14.8 percent decrease from September 2007, said Alexis Higgins, deputy airports director of marketing.

"Anytime there is reduced capacity, there is reduced income from landing fees, reduced rentals from gate space and reduced ticket counter leases," she said. "Ultimately, we'll see reduced numbers of passengers and potentially higher fares. We also could see a reduction in concession and parking revenue."

Airports Director Jeff Mulder said the airport staff and Carl Remus, deputy airports director of finance and administration, considered potential air service cuts in the Tulsa Airports Improvement Trust's $36.25 million 2008-09 budget. The fiscal year began July 1.

"We already built in (the budget) a 20 percent reduction in landed (aircraft) weight," Mulder said. "We're being very conservative. We essentially, with some exceptions, are putting in effect a hiring freeze. We also are doing other things to conserve cash. I've told staff we will delay any capital purchases until after January and limit travel.

"With those approaches, we believe we will be OK. I don't think there will be any job cuts."

Mulder said the drop in crude oil prices from the $140-a-barrel range to around $118 is a positive development for the airlines.

"If the price of oil continues to come down or stabilizes, airlines will be able to plan -- and put flights back in, next year, hopefully," Mulder said. "The key is stability. Certainly higher prices aren't good for the airlines, but instability adds to their problems."

D.R. Stewart 581-8451

don.stewart@tulsaworld.com

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