Archive for March, 2008
March 31st, 2008
A national record is fallen, could a local record be next? The details (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford’s spiked up about 5 cents over the weekend to $3.40 a gallon Sunday, then dropped to $3.38 Monday. Hopefully, they keep falling along with oil prices. Otherwise, we could be hitting the all-time record ( $3.46 a gallon) soon. Almost every area of the state spiked Sunday and dropped today.The state average is $3.42, even with yesterday and 10 cents from a state record. We’re down to fifth in the state, by the way. The national average hit a record this weekend and is at $3.29 a gallon. Illinois jumped to fifth-highest gas prices in the country.
Diesel: Better news here. Rockford dropped almost four cents today to $4.06 a gallon, eight cents from the record. Much of the state dipped slightly today, and the Illinois average decreased a penny to $4.14 a gallon, about two cents shy of its record. We’re down to sixth or seventh place for diesel prices in Illinois, depending on Quincy (I doubt their prices are actually at $0.00). The nation dropped less than a cent and remains at $4.02. Illinois has the 10th-highest prices in the country.
March 31st, 2008
You don’t need to return to your seat. You don’t need need to put your tray table in an upright and locked position. You don’t need to reach for an oxygen mask.
There’s a little turbulence at Chicago Rockford International Airport, but the airplane isn’t going down.
Sure, United Airlines just announced that it’s cutting service to Denver in June. Yes, Allegiant Air is abandoning Fort Lauderdale then, too. No, I never heard of Southern Skyways before this year either.
But before you let loose with cries of “Why can’t Rockford keep airlines?” or “See, I told you it wouldn’t last,” look at the context.
Peoria also lost service to Fort Lauderdale. Fort Wayne, Ind., lost service to Fort Lauderdale and previously to Las Vegas. Three other cities are losing Allegiant service.
Atlantic City, N.J.; Meridian, Miss.; Islip, N.Y.; Bellingham, Wash.; and Fargo, N.D., are losing Delta service soon. United Airlines is grounding up to 4 percent of its fleet because of fuel costs.
Even ultra-low-cost carrier Skybus announced that it is slashing service from Gary, Ind., to Greensboro, N.C., in half. That came a week after service started.
What does this mean? It’s not just us.
Fuel prices have jumped 30 percent in the past three months and doubled in the past year.
And yet, RFD expects year-over-year growth in 2008. They’re still talking about around 300,000 passengers, despite the ups and downs.
If neither of those happen, then we can talk about a descent. But given the track record — steady growth despite a post-9/11 decline in the airline industry — let’s wait before hitting the panic button.
Several online commentators have criticized the airport’s plan to offer nondaily service to Detroit and Denver through a partnership with Southern Skyways. They think it’s silly for an airport to get into the airline business.
Benet Wilson, a blogger for Aviation Week, called it “a big gamble … this could be a measure that the airport — and the community — can ill afford.”
Of course it’s a gamble, and it could flop — although a flop would cost RFD up to $500,000, or a fifth of the subsidy United Airlines got for its two years here. Do you have a better idea?
If the legacy carriers thought they could make as much or more money flying between Rockford and their hubs, they’d be here. But they’re consolidating, putting planes in more profitable places — such as international routes — and grounding others. They’re large companies that are risk-averse in a very risky time.
RFD, it seems, has two choices: Sit back, watch the decline and hope it ends soon; or take risks, think outside the box and try for something else. Worst-case scenario, it seems, is they end up with the same fate as if they did nothing.
Best-case scenario: The airport manages to develop some new, profitable routes and continues its steady growth until the downturn ends. Then, maybe, someone like Frontier, Southwest, AirTran or Skybus may come calling.
Staff writer Thomas V. Bona may be contacted at 815-987-1343 or tbona@rrstar.com.
March 28th, 2008
I’m serious, I don’t know how to bike. I also don’t know how to swim, though as fun as it is, it’s not a viable alternative means of transportation. At least not in the Midwest.
Here comes the pain (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford’s prices rose almost more than three cents to $3.35 a gallon, which I believe is the highest level yet this year.We’re also less than 12 cents from our all-time record. Most of the state increased, some worse than us: Bloomington was up 6.4 cents to $3.32 a gallon and Danville was up 5.7 cents to $3.29. We’re now third overall in the state, though. The state average increased two cents to $3.40 a gallon., 12 cents from its record. The national average increased almost a cent to $3.28 a gallon, a cent shy of its record. Illinois jumped to 6th-highest gas prices in the country.
Diesel: Rockford gained half a cent to $4.09 a gallon. Some metro areas went up, some went down, some stayed flat and the state average remains at $4.14 a gallon. We’re still at fourth place for diesel prices in Illinois. Another day at the truck stop. The nation dropped less than a cent and remains at $4.02. Illinois has the 9th-highest prices in the country.
March 27th, 2008
Slightly bad news for motorists, slightly good news for truckers (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford’s prices rose almost two cents to $3.32 a gallon, joining the state and national increases. Most of the state increased, most notably Springfield (up 6.7 cents to $3.31 a gallon), Chicago (up 3.7 cents to $3.45) and Quincy (up 2.5 cents to $3.27). We’re still fourth in the state in gas prices. The state average increased two cents to $3.38 a gallon. The national average increased almost a cent to $3.27 a gallon. Illinois has the 8th-highest gas prices in the country.
Diesel: Rockford dropped more than two cents to $4.08 a gallon, the largest decline in the state. Every metro area except East St. Louis (up three cents to $4.04) dropped or held steady today, but assume it’s a blip absent a trend. We’re still at fourth place for diesel prices in Illinois. The state as whole dropped half a cent to $4.14 a gallon today. The national also dropped half a cent to $4.02. Illinois still has the 10th-highest prices in the country.
March 27th, 2008
OK, loose ends might not be the best choice of words given the recent spate of airplane groundings for safety inspections. I could say “airline industry potpourri”, but that might be a trademarked product hawked by Skybus. Either way, here they go:
- Allegiant Air planes not grounded: Astute local travelers may realize that the planes American Airlines grounded for safety inspections are the same kind of plane flown by Allegiant Air out of Chicago Rockford International Airport. No need to worry, Allegiant spokesperson Tyri Squyres told me: “Though not required, we are proactively inspecting our aircraft. We should have this completed shortly and foresee no disruption to our scheduled service as a result.” As a smaller airline than American, it’s feasible that they can do these inspections without disruptions … on Tuesday, for example, they have few flights. More as I get it.
- Cranky says ‘relax’: The Cranky Flier, one of my favorite airline bloggers out there, puts the safety issues in perspective. The sky is not falling.
- Here’s an interesting idea: Officials at Youngstown-Warren Regional Airport in Ohio recently announced a push for local companies to offer airline tickets to employees as part of incentive programs. It’s a pretty clever way to try to increase business at the airport. Small airports like YNG and RFD really do need to think outside the box to gain and keep service, because the legacy carriers don’t have them on the radar, and the up-and-comers like Allegiant are looking for fertile, not stagnant, markets. Also, take this as a shout out to the Fly Youngstown Blog, a well-designed and informative site tracking that airport.
March 26th, 2008
Mixed messages today (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford’s prices dropped three cents to $3.30 a gallon, though both the state and national averages ticked up. A lot of yo-yoing in Illinois today: Springfield rose more than five cents to $3.24 a gallon; East St. Louis rose three cents to $3.33 a gallon; Chicago rose two cents to $3.42 a gallon; and Quincy dropped more than three cents to $3.24 a gallon. The net result is we’re now fourth in the state in gas prices. The state average increased a cent to $3.36 a gallon. The national average increased less than a cent and is at $3.26 a gallon. Illinois is tied for the 8th-highest gas prices in the country.
Diesel: Rockford rose almost two cents to $4.11 after a one-day decline. We’re back up to fourth place for diesel prices in Illinois. The state as whole stayed at $4.15 a gallon today. East St. Louis and Quincy returned to the land of $4-a-gallon fuel (welcome back, guys!). The national average increased a tenth of a cent and is is still at $4.03. Illinois still has the 10th-highest prices in the country.
March 25th, 2008
Well, that’s not entirely true. I did fly from Chicago Rockford International Airport to Springfield last May to cover a Chamber of Commerce event. But that was for business and only a 35 minute flight.
Now I’m going as a “civilian”, flying on the new Detroit route at the end of June. While I’ve been to DTW (a great airport) once before, this will add Southern Skyways to my airline list. Sadly it’s only a piddly 10 right now (Eastern, Continental, ATA, American, Northwest, United, Midwest, Southwest, Aer Lingus and Allegiant for the Springfield trip). I’ll add AirTran also this summer for another trip.
(Now you see why my wife calls me a “dork”).
We have an exciting vacation planned - transportation and baseball! We’re flying to Detroit to catch a Tigers game, then renting a car to Pittsburgh (where my beloved Yankees will take on the Pirates … and I’ll take on a Primanti Brothers sandwich), then taking Amtrak or a rental car to Washington, D.C., for a long weekend with a Nationals game, an Orioles game and time with friends and family, followed by a an Amtrak trip to Cincinnati for a Reds game. Then back to Chicago on Amtrak and a Van Galder bus to Rockford.
Basically my vacation will resemble this:
March 25th, 2008
A boring day at the pump, but no news is good news (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford’s prices didn’t move an inch, staying at $3.33 a gallon. Quad Cities jumped past us into second place at $3.34 a gallon, and the prices in other metro areas generally didn’t move much. The state average dropped half a cent and stands at $3.35 a gallon. The national average is at $3.26 a gallon, down half a cent from yesterday. Illinois is tied for the 9th-highest gas prices in the country. I told you there wasn’t much going on.
Diesel: Rockford dropped almost three cents to $4.09. We slipped behind Decatur (just over $4.09) into fifth place for diesel prices in Illinois. The state as whole backed off its record pace, dropping a penny to $4.15 a gallon today. East St. Louis and Quincy both slipped to slightly below $4 a gallon, and wouldn’t it be lovely if we could join them? Not likely, the national average is still at $4.03, down only a fraction of a cent. Illinois has the 10th-highest prices in the country.
March 24th, 2008
Sorry to be MIA last week, I was tied up in airport coverage.
But meanwhile, a crazy week at the pump (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford is back up to second-highest of Illinois metro areas, even though we’ve only risen 3 cents since last Monday (when we were lowest in the state). We’re at $3.33 a gallon, down more than a cent from yesterday. For those wondering, we’re still almost 14 cents shy of the all-time record, so here’s hoping today’s slight slide continues. We’re still below the state average, which dropped a penny to $3.35 a gallon today and has dropped 4 cents in the past week. The state average is so high because Chicago remains at $3.40 a gallon, down almost a penny from yesterday. Everyone else is clustered between $3.23 a gallon and $3.33 a gallon. The national average is at $3.26 a gallon, down a fraction of a cent from yesterday and 2 cents from last week. We’re celebrating our eighth-straight day of non-record-setting prices in the country (it’s the little things that count). Illinois now has the 9th-highest gas prices in the country.
Diesel: Hopefully these have peaked for now, too? Rockford’s record pace stopped Saturday at almost $4.14 and has since dipped to $4.12 a gallon. We have the fourth-highest diesel prices in Illinois. The state as whole remains on a record pace, increasing a fraction of a cent to $4.16 a gallon today. Chicago is up to $4.25 a gallon, and every metro area in the state is averaging at least $4. The nation as a whole is at $4.03 a gallon on average, down from Saturday’s record of $4.04. Illinois has the 9th-highest prices in the country.
March 24th, 2008
Jon Hilkevitch of the Chicago Tribune takes a trip from Gary to Greensboro, N.C., on Skybus, and the Trib includes a nice online video about it.
Some thoughts:
- I know Skybus’s business model is basically “really low fares, but pay for any extras” and I knew they hawked food and trinkets on the flight. Allegiant Air does a similar model out of Rockford, but Skybus takes it to a whole new level. In the video, their marketing strategy is basically a guilt trip - “buy our beef jerky and crochet sets or else your fares are going to shoot up.” If that doesn’t work, maybe they’ll send flight attendants out in sackclothes, saying “We don’t have a uniform allowance anymore because you didn’t buy sunglasses!”
- That said, I want Skybus to work (just like I want Allegiant to work) because I think the more choices the consumer has, the better. If I’m making a quick jaunt somewhere and don’t need to check my luggage, I like having a cheaper overall fare without that amenity. I can put on my iPod and ignore the other sales pitches. The “don’t bring your own food” rule, though, is a bit harsh. Could “don’t bring your own entertainment” be next?
- Now, Hilkevitch flew on a Tuesday, but those passenger counts were pretty scary. 50 people coming in on a 150-seat plane, and 17 going out? It’ll be interesting to see what their load factors are through the week. I can see why Skybus quickly cut back to one flight a day.
- I have to keep repeating “Gary and Rockford are not competing.” They’re so far away from each other, drawing from different populations (We’re aiming for the northwestern suburbs and southern Wisconsin, they’re gunning for downtown and south-suburban Chicago and northwest Indiana) that there’s enough to go around. The competition only comes in when an airline wants to serve only one Chicagoland market (like vivaAerobus). But even if they choose Gary, there are other Mexican airlines that could look at RFD.
- Someday, I’ll get paid to fly somewhere. For now, I’ll settle for MKE-ATL-RDU on AirTran for a friend’s wedding next month.
Any Skybus flyers out there, either through Gary or Milwaukee?
Previous Posts
