Site Admin

Joined: 15 Jun 2005
Posts: 2316
Location: Indianapolis, IN

I was looking at the IND board package from mid December and from their reports it was pretty easy to determine why IND hasn't gone anywhere under the current leadership and why it won't go anywhere in 2012 either.

In the 2012 strategic initiatives IND is looking to stay in the top half of growth against airports in the region (based on percentages). They include ORD and MDW which are basically at capacity and don't have room for growth, CVG which is being dehubbed and will see negative growth, STL which is still losing AA traffic from dehubbing, and Louisville (SDF) and Dayton (DAY) which aren't known as growth markets and Columbus (CMH). With AA being in bankruptcy those airports may combine for negative growth in 2012. That is what IND wants to compete against. The IAA is using the economy and industry consolidation as an excuse for setting the bar so terribly low.

Even in a down market there are good stocks to be purchased. Just because the average isn't doing well doesn't mean every stock listed is doing poorly. IND needs to get over this idea that being mediocre is ok. There are significant opportunities to be had for skilled negotiators. Frontier Airlines is suffering in Denver and Milwaukee. Frontier has made significant cuts in Milwaukee and apparently is now making decent cuts this coming summer in Denver. A skilled negotiator would negotiate favorable gate leases that would encourage an airline like Frontier to begin shifting some of its capacity to IND.

Even with industry consolidation there are still airlines which do not serve IND. JetBlue would be a great example of an opportunity currently being missed. They are taking delivery of a large number of planes and will be needing a place to put them. IND would be the perfect place. But if you are content having flat growth which is just ahead of other airports in the area then chances are you won't do the legwork needed to land a carrier of the quality of JetBlue. I guess it is easier and takes left effort to try and land someone like Branson Air Express. What about Alaska Air service to Seattle that STL and MCI have landed? What about Spirit (who I cannot stand btw)?

If you are unwilling to negotiate and unwilling to be flexible in your terms then don't expect to land new service and be prepared to be mediocre. It is a buyers market. If you want to sell you have to adjust and you have to be flexible or you will get passed up over and over again. This isn't the 1990's. This isn't the era of cheap jet fuel. Airlines aren't just going to come to you looking to add service. You are going to have to work for it. Adjust or go by way of the dinosaur.

Member

Joined: 11 Oct 2006
Posts: 248
Location: Lexington ky

there to busy focusing on cargo