I found this Stormland-TV story leaves you with more questions, then answers;
The average ticket price spiked 24 percent in the last three years.
Sioux Falls Airport Authority hoped that adding airlines and more flights would make flying more affordable, but that hasn’t happened.
“This flight on Allegiant for the two of us was a little over $800 and we’re used to paying $200 or $250 round trip. That’s the difference of $300 more,” passenger Erlyce Pekas said.
“A lot of airlines have removed flights so there are only a certain number of flights that will leave Sioux Falls or connect to other destinations. If those flights are full and they can continue to fill them at the higher price, we’re going to see those prices high,” Buus said.
First question I have is what did the SF Airport Authority, city officials and the Mayor know when they were promoting more affordable air travel out of Sioux Falls? While I commend all three for getting us more flights, I wonder just ‘what’ the airlines promised Sioux Falls officials? Was there ever a contract or goodwill contract signed about airfares and increases? Are the airlines playing bait and switch with consumers, and did these officials know that was the plan all along?
Like I said, bringing in more options is great, but if the airlines are using the opportunity to gouge us now it seems the new popularity of air travel out of Sioux Falls is fleeting.
But remember, like most ‘growth’ ideas out of city hall, it’s about closing the deal and the ‘short term’ benefits. I’m not accusing MMM of anything nefarious here, in fact, I doubt he knew what the long term plans were for the airlines to increase fares, nor did he even care. Funny how all of this expansion and availability at the SF Airport is starting to look more and more like a certain Credit Card’s interest rate after 90 days.
On another, yet related matter only a fool would think that airline consolidation would reduce prices and increase service.
But remember, like most ‘growth’ ideas out of city hall, it’s about closing the deal and the ‘short term’ benefits.
Couldn’t agree more. Resiliency means slow and steady growth – growth that’s robust – but when I look around Sioux Falls, I see a lot of bubbles waiting to burst.
Supply and demand. Fuel costs. End of story for the five Part 121 carriers at FSD as well as the air charters.
Want to know what “promises” were made by the airlines? Very Simple. Go to the Airport Authority and read the meeting minutes and read the contracts. The mayor has nothing to do with the running the airport except naming its five commissioners who hire the executive director.
What’s the cost of flying Sioux Falls to Orlando on January 20, 2016? It has nothing to do with bait and switch but rather economic factors, including supply and demand at that time.
My guess that airline ticket, my new care that I might purchase then, and a night on the town will be more expensive in eighteen months, too, with nothing to do with city hall.
oops. make that new “car”… but I suspect any “care” I might need will be more expensive, too. 🙂
Mark, you forget all MMM’s press conferences telling us that HE brought more flights and lower prices to SF. You can’t take credit without also accepting blame.
Blame for what? In this article you were talking about whether the airlines were involved in “bait and switch” and implied something was promised by the Airport Authority. You asked the question but there’s absolutely no evidence about either.
That an elected official, including the mayor, would smile for the camera and bask in the glory of being part of getting a new carrier to serve or expand airline service to Joe Foss Field is not hardly surprising.
Seems to me, the mayor should be held accountable for everything he takes does and does not do as mayor. But your implication here is misguided.
You can get cheap flights out of SF. You just have to book further out and fly when the airlines want you to. Both Frontier and United still have RT under $200 to Denver, but not if you want to go out for a 4 day ski trip this weekend. Having Frontier here has brought down airfare into Denver as now United has a cheaper flight or two some days. Before Frontier, Denver was always a $350-400 RT, same price as a RT to Phoenix on the same plane.
Supply and demand and competition is what it is all about. 25 years ago Beresford International should have been built, serving all the people that still fly out of SF and Sioux City.
Mark, I see your points, but scott also makes a good point, how involved was Huether with these contracts? If he wasn’t involved at all, the airport authority needs to say that publicly, they also need to explain to the public that like most free enterprise, the airlines can’t pretty much charge what they want to, like the travel agent points out in the article.
First, a disclosure: I’m not a current resident of Sioux Falls, and I’m pretty sure you’re more up to speed with what’s going on there. I read your blog because of interest in my home state and I think your blog seeks to hold public officials’ collective feet to the fire. I get that and I think you’re doing a public service.
Second, if I read a headline about an airline using “bait and switch” and wondering whether officials knew that was the plan “all the long” I look for facts in the article that would support that or even tend to support that and could not find any.
As I said earlier, the SF Airport Authority is the only entity to negotiate with any air carrier (or any vendor, for that matter) that wants to rent gate space at the airport and those contractual agreements are public information.
When Acme Airlines wants to lease space for three flights a week to Vegas, they would have to deal w/ the Airport Executive Director and that contract would have to be approved by the board. The mayor, the chamber of commerce honchos all can (and likely) would, meet with Acme and put on a dog and pony show showing how this would be a great deal for Acme and the traveling folk of eastern SD. The Airport Authority haggles out the contract, the board approves it, the mayor, Chamber of Commerce, and the travel agents show up, smile, and cut the ribbon. Everybody’s happy — until Acme has chronic flight delays, goes out of business, or raises fairs.
If that happens, my first reaction is to blame market forces, not the airport folks who went out to negotiate more travel options or the mayor and the chamber for encouraging their efforts.
Now — if there is more to this than that, then reporters, bloggers, or ordinary citizens can attend airport board meetings or read the minutes.
That’s my two cents worth of input. 🙂
let’s make that “raises fares” okay? Your the blogger, I just a hack…:)
all airlines use the supply and demand model. when travel gets closer to the date and the plane fills up the price increases. you and totally get cheap tickets out of sioux falls if you purchase in advance. even the washington pavilion uses this sales model. you could have gotten prime american idiot seats a few months back at a lesser rate then you will pay today for the same seat.
Jeff, I totally understand.
My point is that the Mayor consistently wants to take credit when things are going well, but when the airlines start increasing rates and fees, he is mysteriously is silent.
Salesman. The car runs great (today) but once you drive it off the lot it’s your problem.
I guess what I am trying to say, is that if the mayor was REALLY responsible for bringing all these carriers in (which, as several of you have pointed out, he was not) then wouldn’t he be in the front lines negotiating with the airlines about bringing down fares?
🙁
Air travel is expensive & somewhat obsolete. When you get to a major airport, you circle 3 times before landing. Obama promoted high speed trains. It’s an answer that’s worked in Europe. It’d be a spur here from Omaha or MSP but transit time could be the same & more reliable. I’ve thought about twice per day bus transit here to MSP & OMA. The airlines & political types would condemn it. So, there’s no practical answer.
I think a group of Anesthisiologists (sp?) should start an airline or bus service called “Wake when you arrive”
It is pure comedy that anyone would actually believe a small city mayor or city council could have any affect on the price of airline tickets.
Winner – Right?! But as mayor, he sure tried his darndest to tell us he was getting r’ done. Now the ticket prices are going up, he has little to say about the airport.
and when prices drop, who will be patting himself on the back if he’s still in office?
pathloss – In 40 years of commercial flying – on at times a very frequent basis – I have to say that I have only had to “circle” an airport (in a holding pattern) ONE TIME.
On the other hand – we definitely need a much improved rail transportation system.