Service to and from Mitchell International Airport continues to grow as AirTran Airways expands its local presence, Midwest Airlines, under the ownership of Republic Airlines, begins to resume service to a number of destinations and Southwest Airlines comes to town.
The expanded service is good news for Milwaukeeans, who will reap the benefits through competition-driven price wars and more options for travel, both business and leisure.
The airport set a record in September when 648,779 passengers flew through Mitchell, an increase of 16.85 percent from September 2008. The increase in traffic is almost directly linked to the leap in capacity as there were 19 percent more seats on flights coming in or out of the airport.
More than anything, though, low fares played a major role.
In the second quarter of 2009, average fares for flights to and from Mitchell were $28 less than the national average and $44 less than flights to or from Chicago's O'Hare International.
Overall, the average airfare out of Milwaukee was lower than 75 other airports in the country.
Attracting Chicago-area residents wishing to avoid the notorious delays at O'Hare or the travel hassles of Midway Airport has long been a goal of Mitchell officials and airlines.
But Mitchell is also quickly becoming a very large regional airport. Aside from drawing travelers from the metropolitan area and northern Illinois, Mitchell is becoming a more viable option for out-state fliers and those in Upper Michigan as well as Iowa.
"With 12 airlines offering 50 direct flights daily, people are more willing to drive to Milwaukee as opposed to O'Hare and Midway," airport director Barry Bateman says.
What's next for Midwest?
The current price wars are win-win for consumers, but could be a challenge for Midwest Airlines.
Midwest has long been the major player at Mitchell but has seen its market share slip in recent years. The airline at one time accounted for 50 percent of the traffic at Mitchell, but that number dropped to a little more than 35 percent in September.
The decline started after fuel prices skyrocketed in 2008, leading to a 40 percent reduction in service. The airline has also shed a lot of the amenities that set it apart from other airlines, including its trademark, two-across, wide leather seating.
The airline's $31 million sale to Indianapolis-based Republic Airlines was completed last month and almost all flight operations are handled by Republic crews. Midwest employees still handle some ground operations
The new owners have said that they plan to restore service to destinations cut by Midwest in the past, but requests for comment were not returned by airline representatives.
An era ended for Midwest Airlines Monday night, when the last legacy Midwest flight crew landed the last Boeing 717 at Mitchell. As part of Republic Airlines' purchase of Midwest, fuel-efficient 99-seat Embraer 190 and 136-seat Airbus 319 jets have replaced the 717s and are being operated by lower-cost Republic flight crews.
Industry analysts agree, though, that Midwest's market share could continue to fall as passengers flock to low-cost carriers like AirTran and Southwest, especially if Republic phases out the remaining signature services provided by Midwest.
"Because of the transparency of ticket prices on the Internet, you've got to provide excellent service and do things to fill those airplanes up," Mitchell's Bateman says.
A decade ago, Milwaukee was merely a blip on AirTran's radar. The airline entered the Milwaukee market in 2002 and had only a minimal presence, beginning with just three daily flights to Atlanta and Orlando.
Today, the market accounts for roughly eight percent of the airline's traffic and the company expects that number to reach into double-digits by next year.
The airline has quickly become a major player in Milwaukee, rapidly expanding service after an unsuccessful takeover of Midwest Airlines in 2007.
"Outside of Atlanta and Orlando, Milwaukee is practically our third-biggest city, almost tied with Baltimore," says AirTran spokesman Christopher White. "Milwaukee has been both a tremendous growth opportunity for the company and a really good place for us to begin operating."
Milwaukee was a natural choice for AirTran, which was looking to expand westward after establishing a strong presence along the Atlantic coast. The city's central location and proximity to Chicago played major factors, but AirTran, in studying the market, also felt that Milwaukee was under-served and overpriced.
"We looked at population and what options were available at the airport," says White. "There weren't a ton of options in Milwaukee. For years, there were only two players in town: Midwest and Northwest. Northwest was doing enough to have a presence, but was still focused on Minneapolis.
"Midwest was the hometown airline, but that's really changed over the last few years."
Today, AirTran operates 36 daily flights to 19 destinations from Milwaukee.
Much of what AirTran is currently doing in Milwaukee was promised during the takeover bid. Many doubted that AirTran would maintain the level of service for which Midwest became known and experts wondered if the market could sustain the amount of service and flights AirTran promised.
"We pride ourselves on living to our word," White says. "Every promise we've made we've upheld."
White admits things could have been better, especially for Midwest pilots now out of work.
AirTran and Midwest were the two main United States airlines flying the Boeing 717s. Had the takeover taken place, many of those pilots might still be flying with the combined operation.
"Those pilots unemployed would not have been unemployed," White says. "They'd still be flying 717s just like they were for Midwest.
"It was a great opportunity for us to get started and establish roots in the the town. Unfortunately, Midwest didn't work out but we've grown organically."
What's done is done and AirTran has moved on. In addition to providing increased service and lower fares, the company has made very visible efforts in the community, lending its name to the picnic area at Miller Park and providing key sponsorships to legacy events like the Wisconsin State Fair and the Great Circus Parade.
The airline also hired Brewers star Ryan Braun as a spokesperson.
White says that those partnerships come with being a good corporate citizen but also send a message that the company plans to maintain a long-term presence in the community.
"We're not signing one-week or one-year deals," White says. "We have every intention of staying in the market and being involved in the community. It's very important for us to serve the community in which we work."
Southwest officially entered the Milwaukee market on Sunday, when a Boeing 737 from Baltimore brought the airline's first flight to Milwaukee.
Bateman and Southwest CEO Gary Kelly say both parties had been in contact for quite some time but only now did everything fall into place.
"It was never a matter of if we wanted to be in Milwaukee," Kelly says. " It was more a matter of when. So here we are in 2009."
Southwest launched service with a dozen daily flights to six cities; Baltimore (three flights), Kansas City (three), Las Vegas (two), Orlando, Phoenix and Tampa. Travelers can also enjoy same-plane direct or connecting service to 49 other destinations in the Southwest network.
The airline hangs its hat on low fares and no fees for checked bags, two things that Kelly thinks will be very influential in winning over Milwaukee travelers. The airline is also hoping to attract from a wider base outside of the area, especially the Green Bay in Madison markets.
Despite the large presence Southwest maintains at Midway in Chicago, Kelly doesn't worry that Milwaukee will draw those customers away.
"Milwaukee will complement that, I think," Kelly says. "We definitely will draw from a wide area with our fares and continue building our presence in the Midwest."
In Milwaukee, Kelly sees an opportunity similar to what happened in Pittsburgh, a market Southwest entered in 2000. At the time, U.S. Airways was the dominant player in that market, operating a hub out of Pittsburgh International Airport.
When U.S. Air started cutting service there, Southwest captured a lion's share of the traffic and has had a profound effect on competition to popular leisure destinations in the Southeast as well as Chicago, Las Vegas and Phoenix.
With cuts in Midwest's service, the timing for Southwest's arrival was right, says Kelly. "That creates more of an opportunity for us in Milwaukee."
Like AirTran and Midwest, Southwest plans to be an active member in the community.
Southwest made a big splash over the weekend to celebrate its arrival in Milwaukee. A group of Harley-Davidson riders escorted the airline's first flight -- a ferry of Southwest employees -- from the runway to the terminal on Saturday and Southwest threw a giant Packers party on the Lakefront for Sunday's game.
Benefits all around
The city, itself, stands to benefit if all three of the major players at Mitchell continue to grow and expand service.
Just as residents will be able to hop a plane for a good price, those outside of the city can enjoy travel specials from their hometowns to Milwaukee, something that has gained the attention of the Greater Milwaukee Convention and Visitors Bureau.
"If you can get really low fares and find affordable hotel rates, why not come and check out the Harley-Davidson Museum, the Milwaukee Art Museum or something you can't see in any other destination," says Dave Fantle of Visit Milwaukee.
About 70 percent of the current travel into the city is a result of convention and business traffic. With such an increase in service and decreases in cost, Fantle says his group can be much more aggressive in courting potential business.
"With Milwaukee being centrally located, and now having a number of airlines with direct flights and competitive air fares, all of those things are part of the equation when you're selling your city to a meeting planner or trying to land a convention," Fantle says.
"They're sending a signal that they think Milwaukee is not only a viable destination, but a growth opportunity. The Milwaukee story has been all positive when you consider how the meeting and travel industries has been hit with the recession."
