ILM Holds Its Own, But Proposed Merger Creates Turbulence

July 15, 2013
The first six months of 2013 have been a mixed bag for Wilmington International Airport.

July 13--The first six months of 2013 have been a mixed bag for Wilmington International Airport.

While overall passenger numbers are down and Allegiant Air pulled out of the Port City in January, Delta has added bigger jets on some of its flights to Atlanta and US Airways has upgraded its service to Washington, D.C., from just weekend to twice-daily service.

Airport director Jon Rosborough said although passenger numbers are down about 4 percent compared to last year and the airport now only has two airlines -- down from four last year -- Wilmington has retained service to its most popular destinations and added first class on many of its flights.

"From an air service side, I think we're holding our own," he said.

Outside the terminal, the airport also is moving forward.

Rosborough said the airport has started work on a new combined rental-car center near Blue Clay Road and is wrapping up a $4 million runway-extension project.

The new VA clinic also is generating additional traffic to the airport.

And most importantly, Rosborough said, the airport remains financially solid.

But the biggest unknown for the airport heading into the second half of 2013 is the proposed merger of US Airways and American Airlines, which still needs federal approval.

US Airways is the dominant carrier in Wilmington, handling roughly 71 percent of the airport's passengers on nonstop flights to Charlotte, Philadelphia and Washington, D.C.

But there have been reports since the merger was announced questioning the viability of US Airways' Charlotte and Philadelphia hubs, in large part due to their proximity to American's New York-JFK and Miami hubs.

More recently, other airlines and some government watchdogs have raised concerns over the combined airline's dominant position at Washington's Reagan National Airport, which is already a hub for US Airways.

National is also a slot-restricted airport, meaning an airline must have a "slot" -- government permission to land and/or takeoff at a specific time -- to operate a flight.

Some have suggested US Airways should surrender some of its slots at National to spur competition as part of the government signing off on its merger with American.

But US Airways has hinted that if it has to hand over slots to make the merger work, it will ditch flights to smaller cities -- and Wilmington is one of the smallest markets it flies to from Washington.

Delta, Wilmington's only other carrier after the departure of Allegiant and American, also is going through changes of its own as it ditches many of its smaller 50-seat jets -- which it uses on some of its Port City flights -- because of high running costs.

Merger uncertainty

Amid this turbulence, Wilmington officials are hoping to chart a path to calmer skies.

"We're feeling confident about where we are right now," Rosborough said.

But the proposed US Airways-American merger is the proverbial 800-pound gorilla in the room -- especially with what could happen with National.

Rosborough said Wilmington has joined other small and medium-sized airports in expressing support for US Airways to retain all of its D.C. service, a push that includes lobbying Congress and federal regulators.

"If they were to get those slots, those airlines won't come in to our community," he said about what would happen if US Airways is forced to give slots to other airlines. "That's not going to happen."

But a merger, which Rosborough believes will happen, doesn't necessarily have to mean bad news for Wilmington.

He said it could represent a good chance of regaining service to Chicago-O'Hare, where American has a large hub and where Wilmington had nonstop service until last year.

Miami, another American hub, also could be a new destination, since Wilmington has lots of traffic heading to South Florida.

It also could mean more flights -- and destinations -- for Charlotte, which is the huge US Airways hub where most Port City passengers transit through on their way to their final destinations.

"Like everybody else, we're in the wait-and-see mode," Rosborough said. "But overall, I think a merger would be good for Wilmington."

Gareth McGrath: 343-2384

On Twitter: @Gman2000

By the numbers

Passenger numbers at ILM are down slightly in the first half of 2013. Here are figures for the past four months of the past three years.

Month 2013 2012 2011

June 73,314 71,023

May 71,110 74,156 70,001

April 66,138 68,079 64,067

March 65,541 68,142 63,826

Source: Wilmington International Airport

Copyright 2013 - Star-News, Wilmington, N.C.