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Old 06-10-2019, 02:58 PM
 
841 posts, read 1,402,695 times
Reputation: 290

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Since Contour Airlines arrived in Macon two years ago one of its most frequent fliers has been Michael Dean with more than 90 trips under his belt.

Dean, who travels for business, will have many more opportunities to fly between Macon and the Washington, D.C., with the service expected to continue for at least another four years.

Middle Georgia Regional Airport and Contour Airlines have been approved for a $19.5 million federal grant that would subsidize the service to Baltimore-Washington International Thurgood Marshall Airport from August 2019 to September 2023.

The Macon-Bibb County Commission is scheduled to vote in June to extend the service with Contour.

https://www.macon.com/news/local/article231380163.html
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Old 06-10-2019, 07:38 PM
 
Location: Macon, GA
1,388 posts, read 2,257,429 times
Reputation: 1858
Happy for this BUT Contour is straight up milking it this summer. Few to no cheap tickets. Every ticket is $159-179 each way which isn't any cheaper than flying from Atlanta. In some cases...higher. Considering it is subsidized, this tells me 2 things. 1: the subsidy isn't needed. 2: Contour is making out like a bandit financially.

I have 2 flights in the next 6 weeks to DC and both are on Delta out of Atlanta. Both were slightly cheaper from ATL and go to DCA which is easier than BWI.

I try to support our airport but when it is the same price and I don't have to deal with getting to DC from BWI and there are better flight times to choose from...I am going to ATL. When it was $79-119 each way, it was worth the inconvenience of BWI. At the $159-179 each way point (like this whole summer...)nope!
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Old 06-16-2019, 10:05 PM
 
Location: Atlanta
7,582 posts, read 10,775,179 times
Reputation: 6572
Quote:
Originally Posted by midgeorgiaman View Post
Happy for this BUT Contour is straight up milking it this summer. Few to no cheap tickets. Every ticket is $159-179 each way which isn't any cheaper than flying from Atlanta. In some cases...higher. Considering it is subsidized, this tells me 2 things. 1: the subsidy isn't needed. 2: Contour is making out like a bandit financially.

I have 2 flights in the next 6 weeks to DC and both are on Delta out of Atlanta. Both were slightly cheaper from ATL and go to DCA which is easier than BWI.

I try to support our airport but when it is the same price and I don't have to deal with getting to DC from BWI and there are better flight times to choose from...I am going to ATL. When it was $79-119 each way, it was worth the inconvenience of BWI. At the $159-179 each way point (like this whole summer...)nope!
The problem with the analysis is it is an issue of efficiency. Contour operates a 30 seat plane, whereas the planes on an ATL <> DC-Area route vary in size usually carry 100-200. The overall cost of the flights from ATL will be more, but the cost per passenger will be less.

The other issue there is more travel demand between ATL <> DC with multiple airlines. They can keep their planes closer to continuously full cutting overall costs and they can also adjust to seasonal demand by adding additional departures on the route.

In the case of the subsidized MCN route, they can't adjust to seasonal demand changes or day to day demand changes. They operate what is agreed upon by the subsidy. They take full ticket price per seat, whether the plane is full or only 10 seats are sold.

On peak demand days they can price higher as there are only 30 seats x 2 flights. So overall the route is likely subsidized, but also likely inefficient with lower economies of scale and a mandate to operate flights when demand is weak.

You as a consumer are doing what is expected, if 100 people need to fly on one day, they will rise prices until 40 use another option. But there are days they will operate with unsold inventory and/or ticket prices lower per seat... but fewer people are flying... On off-peak days they will sell the inventory at lower rates and fewer people will seek other options.


I'm skeptical of air subsidies, except for more remote mid-size cities where other options might not exist. The general problem I see is Macon would be better served by a main-line airline using a 70-130 seat plane to a major hub, where travel demand can be met for travelers to/from many destinations. Not a single route like this.
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Old 06-17-2019, 04:20 AM
 
Location: Macon, GA
1,388 posts, read 2,257,429 times
Reputation: 1858
Quote:
Originally Posted by cwkimbro View Post
The problem with the analysis is it is an issue of efficiency. Contour operates a 30 seat plane, whereas the planes on an ATL <> DC-Area route vary in size usually carry 100-200. The overall cost of the flights from ATL will be more, but the cost per passenger will be less.

The other issue there is more travel demand between ATL <> DC with multiple airlines. They can keep their planes closer to continuously full cutting overall costs and they can also adjust to seasonal demand by adding additional departures on the route.

In the case of the subsidized MCN route, they can't adjust to seasonal demand changes or day to day demand changes. They operate what is agreed upon by the subsidy. They take full ticket price per seat, whether the plane is full or only 10 seats are sold.

On peak demand days they can price higher as there are only 30 seats x 2 flights. So overall the route is likely subsidized, but also likely inefficient with lower economies of scale and a mandate to operate flights when demand is weak.

You as a consumer are doing what is expected, if 100 people need to fly on one day, they will rise prices until 40 use another option. But there are days they will operate with unsold inventory and/or ticket prices lower per seat... but fewer people are flying... On off-peak days they will sell the inventory at lower rates and fewer people will seek other options.


I'm skeptical of air subsidies, except for more remote mid-size cities where other options might not exist. The general problem I see is Macon would be better served by a main-line airline using a 70-130 seat plane to a major hub, where travel demand can be met for travelers to/from many destinations. Not a single route like this.
All good points. I am also not a fan of subsidies for cities like Macon where you are 75 minutes from a nonstop flight to anywhere in the world. However, if the pork is available, eat it. I do enjoy having the flight and Contour does a good job.
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Old 06-17-2019, 09:14 PM
 
Location: Atlanta
7,582 posts, read 10,775,179 times
Reputation: 6572
Quote:
Originally Posted by midgeorgiaman View Post
All good points. I am also not a fan of subsidies for cities like Macon where you are 75 minutes from a nonstop flight to anywhere in the world. However, if the pork is available, eat it. I do enjoy having the flight and Contour does a good job.
If we have to have pork, I wish it would at least be on an airline that opens up a max number of destinations and not one of these specialty airlines that fit the minimal mold of the air subsidies.

Part of what concerns me isn't looking at things through the lens of people who live in Macon, but also through the lens of who might could fly into Macon. Like a project manager that might want to order ABC Cogs from a factory in Macon/Warner Robbins to help make the XYZ Widget for __Insert city name here__ business. Being able to get someone in and out of a city on the same business day can be a helpful factor in attracting future business connections.

Columbus, Savannah, and Augusta all get the benefit of this minimal standard at attracting trade/business.


For personal travel, I don't think its a big deal for people to drive 1.5 hours for multi-day itineraries. For business travel, it can make competing companies in competing cities seem a bit more friendly to work with once you factor that 3 hours two-way travel with a car rental from ATL.
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