12.02.2007

Northwest - the "800-pound gorilla" at MSP

Low-fare air battles bypass Twin Cities

Excerpt:

Travelers beginning their trips at Minneapolis-St. Paul International Airport on average pay 21 percent more than travelers starting at other hub airports because of the relative lack of low-fare carriers here, according to the former Transportation Department officials' report.

With increased service from low-fare carriers, the so-called "hub premium" isn't as steep as it used to be in the Twin Cities. Twelve years ago, the premium was 38 percent.

Minneapolis-St. Paul "now ranks fourth-highest," said Patrick Murphy, co-author of the competitive analysis and a former deputy assistant secretary for aviation at the Transportation Department. "It's not in the ranks of the worst, but there is still a premium."

Murphy said the strength of Northwest Airlines in this market contributes to the fare premium by keeping smaller carriers out of the market. In 2006, Northwest flights accounted for 76.5 percent of takeoffs and landings at the airport.

Comment: Southwest would give Northwest a real competitive run for the money!

1 comment:

  1. You really notice the premium when you go to places like travelzoo.com and look at where all the deals are. I looked a few days ago and not one deal was for MSP. I'm talking about 9$ one way flights to Florida from Chicago. Or 150$ flights to London

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