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Business North - The Daily Briefing - Business Newspaper Online
Duluth-Chicago air service restored
 
12/18/2009
by Richard Thomas

(Photo: Duluth Mayor Don Ness and Superior Mayor David Ross, with Duluth airport director Brian Ryks on the right, cut the ribbon at the Dec. 17 celebration of the arrival of the first United Airlines' flight from Chicago.)

A crowd gathered at Duluth International Airport on Dec. 17 to celebrate the return of direct service to Chicago had a message for area business people: Use it.

The occasion was the arrival of United Airlines’ inaugural flight from Chicago’s O’Hare International Airport.

“I call upon business travelers to fly out of Duluth,” said Duluth Mayor Don Ness, a theme repeated by other speakers.

United last served the airport as United Express in the early 1990s, offering one-stop daily service to Chicago-O’Hare via Rhinelander, WI.

Duluth International has a notorious record of attracting, then losing new service with established carrier Northwest Airlines (now Delta) temporarily lowering its fares. Only Allegiant Airlines’ offering service to Las Vegas and Orlando has stayed long term.

“We’re here to celebrate competition,” Ness said.

Delta immediately responded by providing service in larger DC-9 planes, said Brian Ryks, Duluth airport director.

The last Duluth-Chicago service was in 2004, through American Airlines’ regional partner American Eagle. It lasted less than a year. While ticket sales were strong, lower fares and increased costs made the service unprofitable, American Eagle executives said.

While American Eagle service received a $1 million federal subsidy, the federal government pressured the airline to discontinue the flights to relieve congestion at Chicago’s O’Hare International Airport, Ryks said.

That’s no longer a problem, he said, which is why he’s optimistic the new service will succeed.

The Duluth Airport Authority has applied for a $600,000 federal grant through the Small Communities Air Service Development Program to subsidize United’s new service. The authority hopes for a decision by Dec. 31, said President Nancy Norr.

Ryks said the grant would help offset United’s marketing and other startup expenses.

Meanwhile, the Monaco Air Foundation, an affiliate of the airport’s fixed base operator, has raised $200,000 in local donations from area businesses to help offset expected start up losses for the new United Air service.

United offers two flights per day to and from Chicago, leaving Duluth at 6 a.m. and 3:20 p.m., with return flights arriving at 1:10 p.m. and 8:10 p.m. The trip takes approximately 90 minutes, using using 50-seat CRJ-200 regional jets. Round trip fares range from $254 to $313, taxes and fees excluded.

The Duluth airport is undergoing a $65 million new terminal project. Phase one, site preparation and infrastructure work, is complete. Phase two, the new terminal, will begin in 2010 with completion due in 2013. The airport will remain fully operational during construction.

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