spampurse
Apr 12, 05, 9:28 am
Low revenue forces Independence Air out
Citing financial pressures and a low market share, the airline drops service at Norfolk International.
BY APRIL TAYLOR , The Daily Press
April 12 2005
NORFOLK -- Barely one year after its arrival, Independence Air will drop service to Norfolk International Airport, effective June 1. Officials at the low-cost carrier cited financial woes and lower-than-anticipated revenues in the Norfolk market as reasons for yanking its service.
"Revenue (here) was significantly lower when compared to the rest of our system," said Rick DeLisi, director of corporate communications for Independence Air. "We're extremely disappointed that were losing them," said Kenneth R. Scott, executive director of the Norfolk Airport Authority. "Anytime you lose service, it's a concern."
To increase revenues and stay afloat among sky-rocketing fuel costs, the low-cost carrier is reducing the number of smaller aircraft in its fleet - like the 50-seaters that fly out of Norfolk - and the number of larger aircraft. Independence Air will have reduced its fleet of smaller aircraft from 87 to 59 by the summer.
"Given the situation with our fleet, we had to eliminate the destination," said DeLisi, adding that plans are to add more service to Florida and the West Coast.
"We continue to add the larger aircraft, which is not practical for service between D.C. and Norfolk but great for service on the West Coast," DeLisi said. "This allows us to create a wider number of destinations and create a coast-to-coast network for Independence Air." Independence Air employs 15 workers in Norfolk who will have to relocate to keep their jobs with the airline.
Atlantic Coast Airlines, which had been running at Norfolk International Airport as United Express before contracts with United Airlines ended, launched a $30 million campaign last May to usher in Independence Air.
Norfolk was one of 35 original destinations where the airline debuted last June.
In 2004, the air carrier serviced 11,508 passengers at Norfolk, capturing only 3.6 percent of the market share.
Independence Air runs five flights per day from Norfolk to Washington Dulles Airport. The current flight schedule will remain the same through May 31, the last day of service.
Customers who are booked on flights on Independence Air out of Norfolk in June and beyond have the option to switch their Norfolk-to-Washington Dulles flights, get credit on their account with Independence Air or receive a full refund.
Citing financial pressures and a low market share, the airline drops service at Norfolk International.
BY APRIL TAYLOR , The Daily Press
April 12 2005
NORFOLK -- Barely one year after its arrival, Independence Air will drop service to Norfolk International Airport, effective June 1. Officials at the low-cost carrier cited financial woes and lower-than-anticipated revenues in the Norfolk market as reasons for yanking its service.
"Revenue (here) was significantly lower when compared to the rest of our system," said Rick DeLisi, director of corporate communications for Independence Air. "We're extremely disappointed that were losing them," said Kenneth R. Scott, executive director of the Norfolk Airport Authority. "Anytime you lose service, it's a concern."
To increase revenues and stay afloat among sky-rocketing fuel costs, the low-cost carrier is reducing the number of smaller aircraft in its fleet - like the 50-seaters that fly out of Norfolk - and the number of larger aircraft. Independence Air will have reduced its fleet of smaller aircraft from 87 to 59 by the summer.
"Given the situation with our fleet, we had to eliminate the destination," said DeLisi, adding that plans are to add more service to Florida and the West Coast.
"We continue to add the larger aircraft, which is not practical for service between D.C. and Norfolk but great for service on the West Coast," DeLisi said. "This allows us to create a wider number of destinations and create a coast-to-coast network for Independence Air." Independence Air employs 15 workers in Norfolk who will have to relocate to keep their jobs with the airline.
Atlantic Coast Airlines, which had been running at Norfolk International Airport as United Express before contracts with United Airlines ended, launched a $30 million campaign last May to usher in Independence Air.
Norfolk was one of 35 original destinations where the airline debuted last June.
In 2004, the air carrier serviced 11,508 passengers at Norfolk, capturing only 3.6 percent of the market share.
Independence Air runs five flights per day from Norfolk to Washington Dulles Airport. The current flight schedule will remain the same through May 31, the last day of service.
Customers who are booked on flights on Independence Air out of Norfolk in June and beyond have the option to switch their Norfolk-to-Washington Dulles flights, get credit on their account with Independence Air or receive a full refund.