Hub Penalty or Price Gouging?

As many of you know, I am based in Cleveland and Continental Airlines is my carrier of choice.  Beyond the fact that CLE is a hub for Continental, I also appreciate how well they do business and consistently strive for customer satisfaction.  Unfortunately I am seeing a disturbing trend for myself and other business passengers - exorbitantly high airfares to primary business centers such as New York, Boston and Washington, DC.   And in the case of New York City, American Airlines and Delta Air Lines are matching their high fares.

I certainly respect the need to garner a profit for one’s shareholders and the ability to charge a premium for non-stop flights, but current airfares are simply inexplicable beyond terming them price gouging.  Currently, it is just under $1000 round trip for a weekday non-stop coach ticket from Cleveland to New York City, even with 14-day advance purchase.  Seems like a lot for a 416 mile flight.  How much would it be to fly 3,466 miles further to London for the weekend?   $200 less!  That’s right, you can flight 8 times further for hundreds of dollars less.  So costs go UP and prices go DOWN?!  Someone please explain those economics to me!  Yes, that London airfare includes a Saturday night stay, but even without the Saturday stay the airfare is under $2000.

What has been the result of these high airfares?  Many local companies – including the large multinationals – have significantly cut back on travel to these cities or elected other options, such as the twice daily AirTran Airways flights from Akron – Canton Airport to Boston and New York’s LaGuardia airport.  Yes, it is a bit of a drive down Interstate 77 from Greater Cleveland, but saving $700 compared to airfare from Cleveland is becoming well worth it.  And that is before one considers the WiFi and XM Radio onboard the AirTran aircraft.

Overall, it seems to me that many of the airlines are biting the hands that feed them. Continuing to charge these airfares will simply cause more and more lucrative travelers to seek other options, whether it be lower cost carriers such as AirTran or perhaps even free technology options such as Skype video conferencing….

In any event, I am voting with my feet next week and will be trying AirTran for the first time.  My one-way ticket purchased four days in advance was $175, including taxes and an extra fee for an exit row seat.

[RANT OFF]