PIA - A History: Events of 2000 (Includes Slide Show Video)
Two events in 1999 - AccessAir's failure and the displacement by Bloomington-Normal's Central Illinois Regional Airport (CIRA) as the region's leading airline passenger facility - threatened PIA's future as 2000 dawned. The question on everyone's mind was how to deal with the problem. Let us review happenings by airline for the year.
AMERICAN EAGLE (American Eagle Airlines)
By the end of May 2000, flights moved from Gate 4 to Gate 5, which was formerly used by AccessAir and was jetway-equipped. About this time, the carrier announced that it intended to convert all Chicago-O'Hare flights to regional jets by fall. Peoria would gain a sixth daily roundtrip (first shown in AA's September 6 timetable). A fifth roundtrip was converted to jet service on August 21 and the sixth on October 23. There would be no more American Eagle ATR-42s operating in or out of Peoria.
By the end of May 2000, flights moved from Gate 4 to Gate 5, which was formerly used by AccessAir and was jetway-equipped. About this time, the carrier announced that it intended to convert all Chicago-O'Hare flights to regional jets by fall. Peoria would gain a sixth daily roundtrip (first shown in AA's September 6 timetable). A fifth roundtrip was converted to jet service on August 21 and the sixth on October 23. There would be no more American Eagle ATR-42s operating in or out of Peoria.
NORTHWEST AIRLINK (Mesaba Airlines)
On May 1, when Bloomington-Normal received an upgrade - twice-daily roundtrip jet service to Detroit on 69-seat RJ85s - Peoria lost two of three Detroit roundtrips (those stopping at CIRA; a third stopped at Champaign-Urbana), supposedly due to weak demand. In reality, loads were probably adequate with the CIRA stopover, but Northwest Airlink wasn't going to deploy its jets on two roundtrip CIRA-Peoria tag-ons. Load factors didn't support converting two one-stop Peoria-Detroit one-stop roundtrips to nonstops either. One of four Minneapolis/St. Paul roundtrips ended at the same time, but was restored by June 1.
The Official Airline Guide - May 2000 North American Edition shows three CIRA-Peoria-Minneapolis/St. Paul roundtrips, all on Saab 340s. The same type protected a single-daily Peoria-Detroit roundtrip which stopped at Champaign-Urbana.
On May 1, when Bloomington-Normal received an upgrade - twice-daily roundtrip jet service to Detroit on 69-seat RJ85s - Peoria lost two of three Detroit roundtrips (those stopping at CIRA; a third stopped at Champaign-Urbana), supposedly due to weak demand. In reality, loads were probably adequate with the CIRA stopover, but Northwest Airlink wasn't going to deploy its jets on two roundtrip CIRA-Peoria tag-ons. Load factors didn't support converting two one-stop Peoria-Detroit one-stop roundtrips to nonstops either. One of four Minneapolis/St. Paul roundtrips ended at the same time, but was restored by June 1.
The Official Airline Guide - May 2000 North American Edition shows three CIRA-Peoria-Minneapolis/St. Paul roundtrips, all on Saab 340s. The same type protected a single-daily Peoria-Detroit roundtrip which stopped at Champaign-Urbana.
TRANS WORLD AIRLINES/TW EXPRESS (Trans States Airlines)
The last TWA DC-9 departure left Peoria on morning, January 9. The airline closed its third chapter in Peoria after only nine months.
But the news was not all bad. Trans States Airlines dba Trans World Express inaugurated regional jet service here on February 23. A single roundtrip between Peoria and St. Louis operated by a 50-seat Embraer 145 began that day. A second roundtrip was to begin on March 1, though for some unknown reason it actually began February 27. Other flights were operated with ATR-42s, ATR-72s and Jetstream 41s.
Another positive note was that TWA's re-introduction of DC-9 jet service in 1999 helped the carrier and its TW Express affiliate regain the top spot that year. The combined total was 137,342 passengers, up from 131,597 in 1998 but well below the 159,812 posted in 1997.
With air service improving, Peoria Charter Coach's Peoria to Lambert-St. Louis Int'l Airport bus trips failed to lure sufficient business. Service was slashed from two to one roundtrips on December 1, 1999 before ending altogether on February 1, 2000.
TWA lost $353 million in 1999. While it reduced red ink during 2000 ($115 million the first nine months), the situation was unsustainable. The economy had slowed and was sliding toward recession. Bankruptcy or merger with a stronger carrier looked likely as the year drew to a close.
The last TWA DC-9 departure left Peoria on morning, January 9. The airline closed its third chapter in Peoria after only nine months.
But the news was not all bad. Trans States Airlines dba Trans World Express inaugurated regional jet service here on February 23. A single roundtrip between Peoria and St. Louis operated by a 50-seat Embraer 145 began that day. A second roundtrip was to begin on March 1, though for some unknown reason it actually began February 27. Other flights were operated with ATR-42s, ATR-72s and Jetstream 41s.
Another positive note was that TWA's re-introduction of DC-9 jet service in 1999 helped the carrier and its TW Express affiliate regain the top spot that year. The combined total was 137,342 passengers, up from 131,597 in 1998 but well below the 159,812 posted in 1997.
With air service improving, Peoria Charter Coach's Peoria to Lambert-St. Louis Int'l Airport bus trips failed to lure sufficient business. Service was slashed from two to one roundtrips on December 1, 1999 before ending altogether on February 1, 2000.
TWA lost $353 million in 1999. While it reduced red ink during 2000 ($115 million the first nine months), the situation was unsustainable. The economy had slowed and was sliding toward recession. Bankruptcy or merger with a stronger carrier looked likely as the year drew to a close.
UNITED EXPRESS (Air Wisconsin, Atlantic Coast Airlines)
In December 1999, United Feeder Service ended service with its fleet of ten 64-seat British Aerospace ATP turboprops. Replacing both of UFS's Peoria to Chicago-O'Hare roundtrips were 32-seat Dornier 328s operated by Air Wisconsin. Meanwhile, Atlantic Coast Airlines continued to operate the other two daily roundtrips with 50-seat CRJ200s.
Air Wisconsin also operated two daily roundtrips between Peoria and Denver on BAe-146s. All but an afternoon flight from Denver was stopping at Moline's Quad City Int'l Airport.
BOB CORRIGAN RETURNS
Bob Corrigan, a local businessman, always advocated a brand new regional airport whenever PIA suffered a down cycle.
In a January 2, 2000 Peoria Journal Star forum, he compared Central Illinois' 1.29 million people in 18 counties and Omaha-Lincoln, Nebraska's 1.26 million in 21 counties, claimed a new airport would cost only $150 million and offer more "direct destinations" than Omaha!
Corrigan's advocacy was commendable, but hopelessly unrealistic. Central Illinois is too big for a single regional airport. Historically, three of the area's five largest metro areas (Peoria, Springfield, Champaign-Urbana, Bloomington-Normal and Decatur) had the most airline service, which was still true into the 1990s. Then Bloomington-Normal figured out how to exploit its central location to lure Low Cost Carriers (LLCs) and achieve the top spot. Peoria maintained second place because of its population base. The others withered.
In a May 21 forum letter, Corrigan got on board the CIRA bandwagon, as it seemed everyone else was doing at the time. That summer, he was back to advocating construction of a new regional airport.
PIA STRUGGLES WITH DECLINE
AccessAir's failure and TWA's decision to pull jet service again forced the Greater Peoria Airport Authority to evaluate its' future viability. Regional jet service was increasing, and travelers could fly them to three large hubs (Chicago, Denver and St. Louis), but fewer passengers were boarding planes here.
High fares were PIA's biggest problem. A spike in fuel prices in early 2000 did not help matters, but the differential in pricing with CIRA made no economic sense. When CIRA lured LCC's like AirTran and Frontier, Peoria's carriers cut fares to be competitive, and traffic surged. Likewise when upstart AccessAir began serving Peoria in early 1999. After that airline's failure, fares rose and local travelers flocked to AirTran Airways' CIRA-Atlanta flights, which offered connections to multiple cities. Why American Eagle, Northwest Airlink and TW Express failed to keep fares competitive with CIRA is unclear. Perhaps they wanted to kill the Peoria market and designate CIRA as the region's sole airline passenger facility?
In March, GPAA hired GKMG Consulting Services to study the issue. Action was needed quickly - passenger traffic dipped 7.5 percent in the first quarter. Unfortunately, Airport Director Fred Traub resorted to the usual excuse: flight cancellations. (CIRA experienced them as well, but its passenger traffic continued to grow in 2000. I figure Traub was never asked to explain that one.)
By June, GKMG advised GPAA that it set itself apart from CIRA, and build on full-service carriers rather than LCCs. It needed to convince airlines to add service to more hubs, the consultants said. Delta Air Lines was cited as a carrier to lure here. Decisions had to be made as the situation worsened. Through May 2000, PIA's passenger traffic had dipped 12 percent under 1999 levels.
Congressman Ray LaHood nailed it in early July with his "3 P's" - prices, parking and public relations - when he met with airport officials. Eventually, the GPAA got its head on straight and realized it needed to convince carriers to reduce prices. Meetings were scheduled with individual carriers. In August, American Airlines announced it would slash fares up to 70 percent. This action was quickly followed by TWA, which reduced prices by an average of 54 percent. In September, Northwest did the same, slashing fares up to 70 percent. The GPAA approved free parking in August.
The authority did not take LCC's off the table, however. Airport officials met with Heartland Airlines, a proposed startup based in Dayton, Ohio. Former Piedmont Airlines head William Howard served as president of the carrier, which proposed a hub-and-spoke operation at the Ohio city using Boeing 717-200s. Nothing came of it and the carrier failed to obtain sufficient startup capital, which was just as well given the recent AccessAir debacle.
Although the decline in passenger traffic slowed as airlines reduced fares, PIA handled only 385,185 passengers in 2000, a nearly 12 percent decline over 1999.
CIRA SOARS, BUT SHOWS SIGNS OF WEAKNESS
In December 1999, United Feeder Service ended service with its fleet of ten 64-seat British Aerospace ATP turboprops. Replacing both of UFS's Peoria to Chicago-O'Hare roundtrips were 32-seat Dornier 328s operated by Air Wisconsin. Meanwhile, Atlantic Coast Airlines continued to operate the other two daily roundtrips with 50-seat CRJ200s.
Air Wisconsin also operated two daily roundtrips between Peoria and Denver on BAe-146s. All but an afternoon flight from Denver was stopping at Moline's Quad City Int'l Airport.
AIR CARGO HAPPENINGS
Airborne Express, Air Cargo Carriers (UPS), DHL Express, Emery Worldwide and FedEx Express scheduled cargo planes here regularly. Unfortunately, Airborne Express shifted its planes to CIRA on October 2. Nevertheless, PIA handled a record 60.8 million pounds of air freight in 2000.
AIRFIELD IMPROVEMENTS
The GPAA approved its Fiscal Year 2000-2001 budget in February 2000 calling for $15.57 million in spending. Much of the spending went toward runway repairs and taxiway work. A new baggage system and video display monitors were installed. Of note is that the airport's single largest source of revenue was parking fees, which was expected to generate $1.76 million through February 2001.
AIRFIELD IMPROVEMENTS
The GPAA approved its Fiscal Year 2000-2001 budget in February 2000 calling for $15.57 million in spending. Much of the spending went toward runway repairs and taxiway work. A new baggage system and video display monitors were installed. Of note is that the airport's single largest source of revenue was parking fees, which was expected to generate $1.76 million through February 2001.
BOB CORRIGAN RETURNS
Bob Corrigan, a local businessman, always advocated a brand new regional airport whenever PIA suffered a down cycle.
In a January 2, 2000 Peoria Journal Star forum, he compared Central Illinois' 1.29 million people in 18 counties and Omaha-Lincoln, Nebraska's 1.26 million in 21 counties, claimed a new airport would cost only $150 million and offer more "direct destinations" than Omaha!
Corrigan's advocacy was commendable, but hopelessly unrealistic. Central Illinois is too big for a single regional airport. Historically, three of the area's five largest metro areas (Peoria, Springfield, Champaign-Urbana, Bloomington-Normal and Decatur) had the most airline service, which was still true into the 1990s. Then Bloomington-Normal figured out how to exploit its central location to lure Low Cost Carriers (LLCs) and achieve the top spot. Peoria maintained second place because of its population base. The others withered.
In a May 21 forum letter, Corrigan got on board the CIRA bandwagon, as it seemed everyone else was doing at the time. That summer, he was back to advocating construction of a new regional airport.
PIA STRUGGLES WITH DECLINE
AccessAir's failure and TWA's decision to pull jet service again forced the Greater Peoria Airport Authority to evaluate its' future viability. Regional jet service was increasing, and travelers could fly them to three large hubs (Chicago, Denver and St. Louis), but fewer passengers were boarding planes here.
High fares were PIA's biggest problem. A spike in fuel prices in early 2000 did not help matters, but the differential in pricing with CIRA made no economic sense. When CIRA lured LCC's like AirTran and Frontier, Peoria's carriers cut fares to be competitive, and traffic surged. Likewise when upstart AccessAir began serving Peoria in early 1999. After that airline's failure, fares rose and local travelers flocked to AirTran Airways' CIRA-Atlanta flights, which offered connections to multiple cities. Why American Eagle, Northwest Airlink and TW Express failed to keep fares competitive with CIRA is unclear. Perhaps they wanted to kill the Peoria market and designate CIRA as the region's sole airline passenger facility?
In March, GPAA hired GKMG Consulting Services to study the issue. Action was needed quickly - passenger traffic dipped 7.5 percent in the first quarter. Unfortunately, Airport Director Fred Traub resorted to the usual excuse: flight cancellations. (CIRA experienced them as well, but its passenger traffic continued to grow in 2000. I figure Traub was never asked to explain that one.)
By June, GKMG advised GPAA that it set itself apart from CIRA, and build on full-service carriers rather than LCCs. It needed to convince airlines to add service to more hubs, the consultants said. Delta Air Lines was cited as a carrier to lure here. Decisions had to be made as the situation worsened. Through May 2000, PIA's passenger traffic had dipped 12 percent under 1999 levels.
Congressman Ray LaHood nailed it in early July with his "3 P's" - prices, parking and public relations - when he met with airport officials. Eventually, the GPAA got its head on straight and realized it needed to convince carriers to reduce prices. Meetings were scheduled with individual carriers. In August, American Airlines announced it would slash fares up to 70 percent. This action was quickly followed by TWA, which reduced prices by an average of 54 percent. In September, Northwest did the same, slashing fares up to 70 percent. The GPAA approved free parking in August.
The authority did not take LCC's off the table, however. Airport officials met with Heartland Airlines, a proposed startup based in Dayton, Ohio. Former Piedmont Airlines head William Howard served as president of the carrier, which proposed a hub-and-spoke operation at the Ohio city using Boeing 717-200s. Nothing came of it and the carrier failed to obtain sufficient startup capital, which was just as well given the recent AccessAir debacle.
Although the decline in passenger traffic slowed as airlines reduced fares, PIA handled only 385,185 passengers in 2000, a nearly 12 percent decline over 1999.
CIRA SOARS, BUT SHOWS SIGNS OF WEAKNESS
Central Illinois Regional Airport already lost two attempts to lure East Coast service, so it tried for a third. During groundbreaking ceremonies for the new passenger terminal May 10, 2000 officials announced plans by Columbia, Missouri-based Ozark Airlines to offer twice-daily nonstops to Washington, DC that fall. The airline would use Dornier 328JET aircraft equipped for 32 seats. This service required slot exemptions approved by the US Department of Transportation, however. The slots were denied in July.
No matter, because CIRA was on a role. Air Wisconsin dba United Express announced in June that on September 6, it would begin four daily roundtrips to Chicago-O'Hare on 32-seat Dornier 328s. Airport officials had not contacted them about service; the airline added CIRA on its own accord.
Something strange happened with American Eagle's CIRA service. The airline had announced in May that it would convert all five turboprop flights to Chicago-O'Hare to jets by fall. The first two roundtrips were converted on October 2, the others a month later. Then, after a week of all-jet flights, American Eagle announced it would end all service by January 3, 2001! Officials claimed service was unprofitable. One reason for the decision may be that newly reduced fares out of Peoria forced the carrier to choose one market over the other. Another possible reason was entrance into the market by United Express in September.
Political pressure, rather than economics, saved the day. U. S. Senator Richard Durbin (D-Illinois) expressed concern to American Airlines CEO Donald Carty over the earlier loss of service at Springfield (July 2) and planned cuts to CIRA. It took one week for the airline to reverse its decision. American Eagle would be staying at CIRA for now.
CIRA proved able to prosper in a booming economy. Political pressure had temporarily saved unprofitable service. But what would happen in a severe downturn if leisure travel - CIRA's bread-and-butter - was harder hit than business travel? Meanwhile, CIRA handled a record 476,063 passengers in 2000.
No matter, because CIRA was on a role. Air Wisconsin dba United Express announced in June that on September 6, it would begin four daily roundtrips to Chicago-O'Hare on 32-seat Dornier 328s. Airport officials had not contacted them about service; the airline added CIRA on its own accord.
Something strange happened with American Eagle's CIRA service. The airline had announced in May that it would convert all five turboprop flights to Chicago-O'Hare to jets by fall. The first two roundtrips were converted on October 2, the others a month later. Then, after a week of all-jet flights, American Eagle announced it would end all service by January 3, 2001! Officials claimed service was unprofitable. One reason for the decision may be that newly reduced fares out of Peoria forced the carrier to choose one market over the other. Another possible reason was entrance into the market by United Express in September.
Political pressure, rather than economics, saved the day. U. S. Senator Richard Durbin (D-Illinois) expressed concern to American Airlines CEO Donald Carty over the earlier loss of service at Springfield (July 2) and planned cuts to CIRA. It took one week for the airline to reverse its decision. American Eagle would be staying at CIRA for now.
CIRA proved able to prosper in a booming economy. Political pressure had temporarily saved unprofitable service. But what would happen in a severe downturn if leisure travel - CIRA's bread-and-butter - was harder hit than business travel? Meanwhile, CIRA handled a record 476,063 passengers in 2000.
NEWSPAPER SILLY SEASON 2000
There was no improvement over 1999.
A February 24, 2000 headline read, TW Express flight to St. Louis restored -- Travelers can expect more hops to hub airports. In reality, TW Express was not restoring service out of Peoria to St. Louis. Rather, it was inaugurating regional jet service. The headline should have read, Jet service to St. Louis restored, but local newswriters or editors were increasingly clueless as to what was really happening.
A May 1, 2000 headline read, Northwest ending most local flights -- Service shifts about half of its flights to Twin Cities, which couldn't be more confusing. After all, Northwest [Airlink] offered service from here to Bloomington/Normal and Minneapolis/St. Paul, both of which are known as the "Twin Cities." The "Twin Cities" reference is to the former, but this should have been clearer. Obviously, the headline was misleading, and in more than one way. The airline did not end "most local flights." Service to Detroit was cut from three to two flights and service to Minneapolis/St. Paul was cut from four to three. That's a reduction from seven to four. Thus, anyone capable of basic math knows that most local flights remained.
A May 5, 2000 headline read, American Eagle to replace last turboprop jet -- airline to be first Central Illinois airline to offer all-regional jet service. Sloppy understanding of aircraft propulsion was nothing new by this time, but frustrating nonetheless. There is no such thing as a "turboprop jet." It is a turboprop or a jet. Period.
There were numerous other examples showing the decline in quality local coverage of commercial aviation. No need to mention every one here.
MISCELLANEOUS
Summer 2000 brought news that CIRA's Prairie Air Show could be moved to Peoria due to airfield construction. The plan was scrapped, but the issue would be revisited soon.
A February 24, 2000 headline read, TW Express flight to St. Louis restored -- Travelers can expect more hops to hub airports. In reality, TW Express was not restoring service out of Peoria to St. Louis. Rather, it was inaugurating regional jet service. The headline should have read, Jet service to St. Louis restored, but local newswriters or editors were increasingly clueless as to what was really happening.
A May 1, 2000 headline read, Northwest ending most local flights -- Service shifts about half of its flights to Twin Cities, which couldn't be more confusing. After all, Northwest [Airlink] offered service from here to Bloomington/Normal and Minneapolis/St. Paul, both of which are known as the "Twin Cities." The "Twin Cities" reference is to the former, but this should have been clearer. Obviously, the headline was misleading, and in more than one way. The airline did not end "most local flights." Service to Detroit was cut from three to two flights and service to Minneapolis/St. Paul was cut from four to three. That's a reduction from seven to four. Thus, anyone capable of basic math knows that most local flights remained.
A May 5, 2000 headline read, American Eagle to replace last turboprop jet -- airline to be first Central Illinois airline to offer all-regional jet service. Sloppy understanding of aircraft propulsion was nothing new by this time, but frustrating nonetheless. There is no such thing as a "turboprop jet." It is a turboprop or a jet. Period.
There were numerous other examples showing the decline in quality local coverage of commercial aviation. No need to mention every one here.
MISCELLANEOUS
Summer 2000 brought news that CIRA's Prairie Air Show could be moved to Peoria due to airfield construction. The plan was scrapped, but the issue would be revisited soon.
SCHEDULES & ROUTE MAP
I own a May 2000 Official Airline Guide - North American Edition but am using a June 2000 schedule I had already created from indivdual airline timetables.
June 2000 timetables show that American Eagle offered five weekday departures to Chicago-O'Hare; Northwest Airlink offered three to Bloomington-Normal, one to Detroit (via Champaign-Urbana) and four to Minneapolis/St. Paul (one Peoria-bound flight stopping at Dubuque, Iowa); TW Express offered eight weekday departures to St. Louis; and United Express offered four to Chicago-O'Hare and two to Denver (via Moline except for one eastbound flight). This gave travelers 27 weekday departures, all but three linking PIA with five hubs - Chicago-O'Hare, Denver, Detroit, Minneapolis/St. Paul and St. Louis. Ten were operated with regional jets.
I own a May 2000 Official Airline Guide - North American Edition but am using a June 2000 schedule I had already created from indivdual airline timetables.
June 2000 timetables show that American Eagle offered five weekday departures to Chicago-O'Hare; Northwest Airlink offered three to Bloomington-Normal, one to Detroit (via Champaign-Urbana) and four to Minneapolis/St. Paul (one Peoria-bound flight stopping at Dubuque, Iowa); TW Express offered eight weekday departures to St. Louis; and United Express offered four to Chicago-O'Hare and two to Denver (via Moline except for one eastbound flight). This gave travelers 27 weekday departures, all but three linking PIA with five hubs - Chicago-O'Hare, Denver, Detroit, Minneapolis/St. Paul and St. Louis. Ten were operated with regional jets.
- David P. Jordan
great slides!!!
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