Streams

Flight Cutbacks Put in Context

Monday, August 25, 2008

Fewer flights will be taking off from New York's airports this fall, with some cities losing direct service entirely, according to research first reported in Crain's New York Business.

Rick Seaney, CEO of FareCompare.com, which analyzed fall flight schedules, says high fuel costs are the main motivation for the cut backs, but there are other motivations as well.

SEANEY: Well, one of the reasons to do cutbacks is to keep the planes completely full, which gives the airlines pricing power, and with pricing power they can keep prices up and even increase prices, which they've had trouble doing in years gone by.

REPORTER: Cities that will lose direct service include Tuscon, Daytona Beach, and Salt Lake City.

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