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 and their corresponding pricing structure has had a significant impact on airfares at Wichita Mid-Continent Airport, contributing to a 30% overall reduction in airfares and a corresponding 33% increase in passengers.  It is estimated that the savings to the air travelers using Wichita Mid-Continent Airport as a result of the presence of AirTran exceeds $300 million dollars.

A good example of what fares would be like without a low-fare carrier can be found at the Cincinnati-Northern Kentucky International Airport.  “The Associated Press reports that the airport has racked up an entire year atop the list of the nation's most expensive major airports to fly.  The average roundtrip ticket at the Hebron, Kentucky airport costs $556, which is $80 more than second-ranked San Francisco International with an average fare of $476.   The figures are from a report issued by the Department of Transportation's Office of Aviation Analysis.  The latest data are from the third quarter of 2006. With the exception of six months in late 2004 and early 2005, the airport at Hebron has consistently ranked among the most expensive major airports in the country.”

Another example of fares with and without the effect of a low-fare airline can be found right here in Wichita.  According to the U.S. DOT, the average fare to Atlanta in 2006 was $128.06.  The average fare to Chicago was $193.80.  Atlanta benefits from AirTran; Chicago does not. 

AVERAGE ONE-WAY FARES FROM WICHITA MID-CONTINENT AIRPORT
Eastern Destinations in Wichita's top 20

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 October 2005.  Highlights of the study include:

1. Yearly savings to local residents from lower fares is about $51 million

2. When airport activity is increased by 1%, on average, the MSA in which the airport serves increases employment by .3%.  AirTran’s presence is instrumental in supporting an additional 513 South Central Kansas jobs with total labor income of $18,372,794. 

3. AirTran’s presence produces $14.939 million in tax revenue.

4. If AirTran were to exit Mid-Continent Airport, the long-term economic impact would result in a loss of 3,354 jobs and a decrease in labor income of $111,000,002.

In addition to offering significant cost savings for both consumer and business travelers and increasing passenger volume at ICT, the low fares ushered in by our low-fare carriers provide area businesses increased access to customers, has decreased air travel costs to businesses and leisure travelers, and has lessened the hardship of driving to out-of-state airports for affordable airfares.  Access to low-cost air travel has aided in employee development, increased ability to recruit talented employees, and lowered the cost of doing business. 

Please download the PDF to read the entire report:  Projected State-Level Impacts of AirTran prepared by the Center for Economic Development and Business Research, W. Frank Barton School of Business, Wichita State University, October 2005.