Low Fare Impact

Prior to May 8, 2002, Wichita’s airfares were among the highest in the nation.  In fact, Mid-Continent Airport ranked among the 10 highest priced markets in the U.S.  Wichita’s fares were 116% higher on average than those in Kansas City to the top seven non-stop markets.    Further, studies documented that 44% of the Kansas air service potential used out-of-State airports or didn’t fly at all. This situation hampered economic development efforts and crippled tourism development efforts.

The presence of AirTran Airways and Frontier Airlines have had a significant impact on airfares at Wichita Mid-Continent Airport.  AirTran began service in Wichita in May 2002 and since then, fares to eastern destinations have been reduced 60%.  Frontier Airlines began service in Wichita in October 2007.  Fares to western destinations have decreased 50%.  Passenger traffic is up 51% since 2002, making Wichita the 17th fastest growing airports in the nation.   It is estimated that the savings to the air travelers using Wichita Mid-Continent Airport as a result of the presence of AirTran and Frontier is roughly $400 million dollars.

The following chart shows actual fares to Atlanta from airports without a low-fare carrier serving Atlanta, compared to Wichita's fare.  This chart gives a good example of what the fares in Wichita would be without AirTran.

Note:  14-day advance purchase fares, researched on 5/27/08.

For an example of what fares to Denver would be without Frontier, the following chart shows fares to Denver from airports without a low-fare carrier serving Denver, compared to Wichita.

Note:  14-day advance purchase fares; researched 5/27/08

Low-Fare Impact Highlights

• From May 2001 to March 2008, Wichita has increased its retention rate 18%.
• Retention rate improved from 56% - 66%.
• Core catchment area retention rate:  80%.
• Passengers have low-fare access to 40 of the top 50 destinations
• Passenger trend to low-fare destinations (40 of the top 50 destinations) since 2000:  up 58%
• Fares to eastern destinations have decreased 60%. 
• Fares to western destinations have decreased 50%. 
• 2007 set a passenger traffic record, with 1,596,229 total passengers

Economic and Fiscal Impact of AirTran Airways on the Wichita MSA

The Greater Wichita Economic Development Coalition commissioned the Center for Economic development and Business Research at Wichita State University to study the economic and fiscal impact that AirTran has had on Kansas and Wichita.  This study was conducted in February 2008.  Highlights of the study include:

Average annual number of Wichita metro area jobs attributed to AirTran Airways' entrance into the Wichita market totaled 9,720 during the six-year analysis, from 2002 - 2007.  The average annual payroll for these jobs totaled $283.4 million.

Rate of return and fiscal benefit-cost ratios for FairFares and the Kansas Affordable Airfares Program were estimated for the six-year analysis.  For each of the taxing entities under consideration, the benefits exceeded the costs of the program.

• For the city of Wichita - 34.8% rate of return - 1.35 benefit-cost ratio
• For Sedgwick County - 86.2% rate of return - 1.86 benefit-cost ratio
• For the State of Kansas - 425.4% rate of return - 5.25 benefit-cost ratio
• For the three entities combined - 263.9% rate of return - 3.64 benefit-cost ratio

Please download the PDF to read the entire report:   Economic and Fiscal Impact of AirTran Airways on the Wichita MSA, prepared by the Center for Economic Development and Business Research, W. Frank Barton School of Business, Wichita State University, February 2008.

A recent news story from an Oklahoma City TV station gives excellent testimony to the effectiveness of low-fare service in Wichita.  View this must-see news clip, courtesy of  KWTV News 9.com, Oklahoma City, OK:  Oklahoma flies Wichita.