Carrier's Exit Seen in Tennessee Airport Numbers

Airlines that are in bankruptcy or restructuring have been cutting seating capacity, making fewer seats available.
June 23, 2006
3 min read

McGhee Tyson Airport recorded a 13.36 percent drop in passengers during May compared to the same month last year -- a capacity shift driven by the closure of Independence Air and bankruptcies at other airlines.

"Our monthly numbers are a reflection of the decrease in the number of seats available in our market due to the closure of Independence Air and other airlines' efforts in reducing available seats in markets nationwide," Kirk Huddleston, chairman of the Metropolitan Knoxville Airport Authority, said in a statement. "Capacity or available seats has become a larger problem in the aviation industry due to airline bankruptcies and their reorganization plans."

Airlines that are in bankruptcy or have restructured their way out of bankruptcy have been cutting seating capacity, making fewer seats available. But fares continue to "creep up" because demand remains high, said Becky Huckaby, airport spokeswoman.

The airport is reporting a load factor of 80 percent, meaning the airplanes have filled 80 percent of their seats.

"The airplanes are full because there are less seats available, but the demand is still there. And tickets are more expensive," Huckaby said. "The bankruptcies are really impacting us."

Still, airport officials believe a more accurate picture of passenger traffic is seen when Independence Air is taken out of the equation.

"We believe the most accurate way to gauge our growth today is by comparing our monthly passenger statistics to those taken before Independence Air launched service in our market," Huddleston said.

Comparing May 2006 to May 2004 prior to Independence Air arriving in Knoxville, the airport's passenger traffic actually increased by 9 percent.

Comparing year-to-date figures for 2006 and 2004, passenger traffic was up by 12 percent.

Meanwhile, capacity issues are being addressed by some airlines in the airport's market with an increase in seats.

Delta Air Lines increased the number of seats available monthly at McGhee Tyson by 2,760 when it upgraded one daily Atlanta departure to an MD-80 jet and introduced the EMB-170 aircraft to the Knoxville market. Those airplanes are larger.

United Airlines has increased its capacity by adding a fifth daily departure to Chicago, increasing their monthly seating capacity by 3,000.

In comparing passengers traveling through McGhee Tyson, the airport saw 149,564 passengers during May 2006, 172,622 passengers during May 2005 and 137,491 passengers in May 2004 -- a drop of 23,058 passengers between May 2006 and May 2005.

However, the difference between May 2006 and May 2004 was an increase of 12,073 passengers -- before Independence Air entered the local market.

Bill Marrison, airport authority president, said despite lower capacity, Delta and Northwest have indicated they plan to add flights during the next two months.

The airport anticipates Delta reinstating service to Tampa, Fla., by this fall and Northwest may add an additional flight to Detroit by August.

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