Popular A.C.-Vegas flights may fall victim to fuel costs

Nov. 13, 2007

What happens in Vegas might just stay in Vegas, after all.

The non-stop flights from Atlantic City International Airport to Las Vegas - which kicked off with much fanfare back in May - could be discontinued as early as January, according to Sharon Gordon, the communications director for the South Jersey Transportation Authority.

Despite the popularity of the once-daily flights, a Spirit spokesman said the airline is reviewing the status of all of its "long-haul" flights, looking to either cut costs or shift priorities as the price of fuel rises.

"It's an economic decision," Juan Arbeleaz said of any possible route changes. "Our growth is in the Caribbean/Latin America region. The Caribbean offers shorter flights with a higher yield, and it's just two to three hours from our hub in Fort Lauderdale (Fla.) We'd be using the fleet in a much better way."

While Arbeleaz said that no decision has been made, visitors to the Spirit Web site are unable to book a ticket for the nonstop Flight 69 after Jan. 7. "All flights for the date you have selected are sold out," it reads - although all dates between Nov. 12 and Jan. 7, in contrast, have seats listed as available. Visitors are also allowed to purchase tickets for seasonal connecting flights to Las Vegas with a three-hour layover in Detroit, which begin again May 1.

The five-hour 35-minute nonstop flight remains popular, with aviation consultant Mike Boyd listing its average occupancy at between 70 and 80 percent. But when The Boyd Group, Inc. examined the fares for the flight, currently listed as $165 one-way, $319 for what amounts to first class and occasional $99 or $77 specials, the analysis was clear.

"There's no way," his group concluded, "that they're making any money on that."

While Atlantic City is a strong market, Boyd said, "the flight is very long and price-sensitive, and (Spirit) can't find passengers willing to pay higher prices. Now, you and I could think, 'Just raise the prices, morons!' But it doesn't work that way. Airlines don't have the (leeway) to raise prices that we think they do. The marketplace drives the fares."

Shifting resources to the Caribbean, Boyd said, would be a smart move.

"Right now, you have an airplane hanging in the sky for five hours," he said of the nonstop flight. "You could have two to three flights from Florida to the Caribbean and back in almost the same amount of time."

With gas prices edging nearer to $100 a barrel, Boyd said, every airline is re-examining which markets work best. The Las Vegas route is "a noble try," he said, "but markets that make sense today might not make sense tomorrow."

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