Saturday, May 26, 2012

What it would take for Low cost carriers to seriously consider Memphis International Airport


There is no longer any debate that the “situation” at the Memphis International Airport (MIA) is untenable and has to change sooner than later. Both Mayors, the Airport Authority Board (AAB), The Memphis Convention and Visitors bureau, and the editors of all the local newspapers have already joined the chorus started by the “Delta does Memphis” Facebook website started by  one concerned Memphian and has now blossomed into over 3,500 members. Time, however, is not on Memphis’s side, and unless there is a focused strategy implemented as soon as possible, this momentum will dissipate, and the community will continue to bleed businesses, tourism, and residents.

First and foremost, I would prefer to have this resolved by Delta reducing prices on flights out of Memphis so that we no longer have to drive to Little Rock, Nashville or Jackson, Mississippi. That would elilninate the issue of price gouging, and takes enough air out of the tires of the “Airport Anger” movement to derail it permanently. There is no indication that that is going to happen.

As it stands now, it appears that the “political leadership” and AAB want to tap down the discontent with speeches and half-hearted attempts of “going through the motions” of acknowledging the anger, but without the focus and action that this issue deserves. I would like to put forward a plan of action that, if implemented, would at least get a serious discussion started with the likes of Southwest Airlines, or other Low Cost Carriers (LCCs) that normally search out markets that are overpriced with the intent of making a decent profit.

The Mayors - or the Chamber of Commerce - needs to bring the business community (BC) into one room and explain to them that  it is in their best interest to join together to encourage a LLC  to consider Memphis  - and as an incentive, they could cut their corporate travel costs significantly. In return, the BC will allow Southwest (or some other LCC) to analyze their travel bookings - and with the right offer – the BC would commit to fly the LCC.

Even if the scenario above came to fruition, and a LCC came into the market, it is reasonable to expect that the issue of predatory pricing on behalf of Delta would raise its ugly head and would have to be addressed. Unless the Department of Justice (DOJ) sees this as an anti-trust issue and takes Delta to court, Memphis will need a separate strategy to address the issue.  If Memphis can’t compel Delta to play by the rules legally, then I would suggest that Memphis adopt boycotting Delta as an alternative strategy.  Delta may, of course, just decide to pull out of the airport and just have flights that fly to Atlanta like Airtran has now. So be it.

 If Delta does not value our business now, there is no reason for Memphis to be loyal to Delta. I will be glad to personally sponsor a Delta American Express card burning bonfire ceremony on Tom Lee Park with Southwest employees in the background signing up new rapid rewards members. 

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