DATE: Thursday, October 16, 1997            TAG: 9710160503

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY DEBBIE MESSINA, STAFF WRITER 

DATELINE: NORFOLK                           LENGTH:   97 lines

REGIONAL AIR SERVICE RECEIVES GOOD MARKS

Commercial air service in Hampton Roads is rather good for a mid-sized market, especially since many major airlines are shrinking their operations, consultants have told local leaders.

Two consultants spoke at a recent air service summit for airport, business and city officials who are developing strategies to deliver lower ticket prices and more direct flights in and out of Norfolk International Airport.

``As far as seats and access, you're in a pretty good situation,'' said John W. Presburg, vice president of a Colorado firm, The Boyd Group. ``I've seen a lot worse across the country.''

While admitting there's room for improvement - particularly lower fares - the consultants warned local officials not to expect too much.

Some community leaders were surprised by the message. Many of them believe local air service is inadequate and an impediment to economic growth.

``I think everybody wanted to hear that what we have isn't good enough and hear what we have to do to get better air service,'' said John Malbon, chairman of the Hampton Roads-Norfolk Airport Task Force and president of Papco Oil Inc. ``But they said instead that what we've got isn't too awfully bad.''

Norfolk has been spared airline cutbacks that other communities have suffered.

Presburg said airport hubs have shrunk from 36 in the mid-1980s to about 20 today. He said airlines are also pulling jets out of mid-sized markets.

``As these carriers move forward in their profitability march, they're going to take a hard look at how they use their assets,'' Presburg said.

``And communities that don't supply a certain level of traffic will probably lose service altogether.''

Norfolk International, home to 14 airlines, has 200 flights daily to 15 hubs.

``Your city is very lucky,'' said James W. Frierson, who works in economic development in Chattanooga, Tenn., which he describes as the poster child for cities with poor air service.

Chattanooga's dominant carrier, Delta, unexpectedly pulled out two years ago after 47 years. That would be like US Airways abandoning Norfolk, with its 35 percent passenger share.

Frierson said about one-third of mid-sized cities are worse off today than they were in 1978 before deregulation of the airline industry. Norfolk is not one of them.

Yet, a recent state study shows commercial air service in Virginia is expensive and inadequate. Average air fares in the state are about 20 percent higher than the national average. And nearly 90 percent of Virginia passengers travel to an airline hub before arriving at their final destination.

Several initiatives are under way to improve air service in South Hampton Roads.

Norfolk International and Newport News-Williamsburg International airports are evaluating ways to work together, ranging from cooperating in providing some services to merging their operating authorities.

Additionally, the state is conducting a study that explores building a consolidated airport system - either a hub airport or superport - to replace the Norfolk, Newport News and Richmond airports.

``I got the message pretty clear from the consultant: You're not going to be a hub and don't even think you're going to be a hub,'' task force chairman Malbon said.

``That does not mean we have to accept what we have,'' he said. ``There are still opportunities. The community has to work together with the airport authority to have more successes.''

Presburg said the key to improving service in Norfolk is to ``get a few more low-priced seats.'' Courting budget king Southwest Airlines, which is looking for new markets, is one alternative.

``The chances of getting Southwest Airlines in southeastern Virginia: maybe to probably,'' Presburg said.

As for landing a Southwest hub, however, Presburg said: ``Not a chance.''

Another alternative is to meet with airlines and show them the opportunities they have of making money on Norfolk fliers with low fares. Whenever a low-fare carrier has operated out of Norfolk, passenger volumes skyrocketed.

Frierson stressed the importance of business and civic leaders working with airport officials to bring about change. He also touted working on a regional level.

Frierson is director of strategic initiatives for the River Valley Partners Inc., a public-private partnership responsible for economic development in the Chattanooga area. Frierson's group expects an announcement soon that nonstop jet service to Chicago will return to Chattanooga, thanks to his group's lobbying efforts.

Business people should be prepared to write letters and possibly even accompany airport officials on marketing calls to airlines, he said. Politicians on local and national levels should also be involved.

``The economic development stakes are simply too large for the airport commissioners alone to have to be saddled with,'' Frierson said. ``Air service is economic development. It's the gateway to the world.''

He commended the Norfolk Airport Authority and the Hampton Roads-Norfolk Task Force for involving and educating community leaders.

Deborah K. Stearns, chairman of the Norfolk Airport Authority Board of Commissioners, said she expects to host more community forums on air service.

``We are building a knowledgeable constituency that can come together in a short time frame'' to assist airport officials, Stearns said. ILLUSTRATION: Color photo

IAN MARTIN/The Virginian-Pilot

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