CEO MESSAGE

Q&A with Airport CEO About Delta Merger

Recent developments in the airline industry have raised questions about Delta’s hub. Given the airport’s importance to job growth and to the overall economy, CVG Executive Director and CEO Robert Holscher offers these insights.

Do you think CVG will lose service in the Delta–Northwest merger?

CVG is one of the country’s most modern and easy-to-use airports. Geographically it is ideally positioned to feed traffic both north/south and east/west. Additionally, only a handful of airports worldwide offer the operational efficiency of CVG’s three independent parallel runways. The cost of doing business at CVG is also very competitive, since our cost per enplaned passenger is well below the national average. It should be noted that Delta has made no indication that the service levels at CVG are in jeopardy. However, given the dynamics of the industry, and the current cost of fuel, it is extremely difficult to predict the full outcome of the consolidation. I believe it will be some time before the full ramifications are known.

What is the airport doing (or planning to do) to replace service if CVG loses more flights as a result of fuel costs or consolidation?

We have a continual dialogue with Delta about the benefits of operating at CVG. In fact, over the last five years, we have had more than 80 meetings with Delta and with other airlines about initiating or expanding service here. As I mentioned before, the industry is extremely dynamic and circumstances change rapidly. Because of this we are continuing our efforts using the contacts we have built up over the years. CVG remains an efficient, well-run hub airport. In addition, CVG would be an attractive market for low-fare carriers, which have indicated strong interest in CVG under less competitive circumstances.

Would the loss of income from any service reductions allow CVG to maintain a cost structure that would be competitive with other airports?

Delta remains responsible for the majority of the operations and maintenance costs of its facilities through 2020. Additionally CVG does not carry the debt for these facilities on its books. Given this, I firmly believe that CVG’s cost structure will remain competitive with other airports vying for service.

Is there anything the community can do to help preserve the current level of service?

Our business and civic organizations, as well as the community-at-large, have a vested interest in the amount of service currently provided at CVG. These groups should leverage their influence, both with Delta and with their elected officials, to help preserve the air service that has had a major economic impact on our area, and which, over the last 20 years, has helped attract hundreds of businesses to our region.