North Coast Journal 03-26-15 Edition

Page 16

LEFT TO RIGHT: EMILY JACOBS, 4TH DISTRICT SUPERVISOR VIRGINIA BASS AND 5TH DISTRICT SUPERVISOR RYAN SUNDBERG GATHERED AT THE BEGINNING OF MARCH TO WELCOME A NEW FLEET OF UNITED AIRLINES JETS THAT WILL FLY BETWEEN ACV AND SAN FRANCISCO.

AVIATION DIVISION PROGRAM MANAGER EMILY JACOBS ACTS AS THE DIVISION’S REPRESENTATIVE IN THE ONGOING SEARCH FOR ADDITIONAL AIR SERVICE IN HUMBOLDT COUNTY.

Wing and a Prayer

Passenger Enplanement At Arcata / Eureka Airport, 2002-present

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120,000

80,000 60,000 40,000 20,000

AIRLINES

NUMBER OF PASSENGERS

100,000

Horizon Air to SEA

2002

2003

2004

2005

2006

Horizon Air to LAX

Delta Airlines to SLC 2009 2008 2010

2007

United Airlines to SFO 2011

2013

2012

2014

A Decade of Trends at ACV NUMBER OF PASSENGERS

$20,000,000 $300

150,000 REVENUE

$250

120,000

PASSENGERS

$15,000,000 $200

90,000

FARES

$150

60,000

$10,000,000 $100

30,000 2005

2006

2007

2008

2009

2010

16 NORTH COAST JOURNAL • THURSDAY, MARCH 26, 2015 • northcoastjournal.com

2011

2012

2013

© NORTH COAST JOURNAL | SOURCE: HUMBOLDT COUNTY AVIATION DIVISION

AIRLINE PASSENGER REVENUES FARES

Jacobs has been trying to rebuild that goodwill, but she also brings her networking and data to those conferences: facts and figures from previous routes out of ACV, the knowledge of airport improvements, and the feasibility of a host of incentives that can be bargained with, depending on the desirability of a route the airline might offer. “It’s a shark tank,” Jacobs said. “You go very polished, you know your stuff.” As Jacobs describes it, airline companies have been losing money since the U.S. deregulated them in the late 1970s. The now-defunct regulatory agency had essentially been taken over by the industry, leading to very high fares. In 1978, “Federal controls over the entry and exit of airlines, flight schedules, airfares and quality of service were abolished,” according to an article by The Public Good Initiative director David Morris. “Financial oversight was abandoned. Only airline safety remained under federal regulation.” Combined with dropping oil prices and newfound competition, fares plummeted, the standard thinking goes, democratizing air travel throughout the country. Deregulation was lauded across the political spectrum. According to Morris, the act’s success goes virtually uncontested. But, Morris writes (and he cites several studies), the drop in fare prices more or less coincided with falling prices before deregulation. Essentially, Morris says, deregulation led to concentration of ownership of airline companies, and one analyst concluded that the “grant of pricing freedom to the airline industry has generally resulted in average prices being higher than they would have been had regulation continued.” That thinking is becoming slightly broader, but economic debate aside, one thing is indisputable: Humboldt County has few options for air service. Four airline companies control 85 percent of U.S. air travel: Delta, United, American and Alaskan (which owns Horizon). And it’s those same big four that Fly


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