Cheap fares, particularly cheap airplane tickets and cheap vacation packages are now more available out of Milwaukees airport as a result of Midwest Airlines financial difficulties and new competition entering the market. Milwaukee is increasingly being seen as an alternative, much less congested, hub to the Chicago area, which is about 90 miles to the south.
What makes Milwaukees General Mitchell Airport even more attractive is that it has plenty of room to handle additional aircraft.
Until 07 Midwest flew about half of the passengers that traveled in and out of Milwaukees airport. Its historical dominance of this market artificially increased prices, making Milwaukee an attractive target for low-cost airlines, particularly after Midwest started suffering financially after 9/11.
AirTran has emerged as the market leader in Milwaukee, with almost 24 percent market share in 09. AirTrans capacity has increased from just under 2 million available seat miles in the last quarter of 07 to almost 8 million by the end of last year.
Further competition was kicked off last year as Southwest entered this market. Midwests capacity reductions in an effort to return to profitability, opened the door for Southwest as it added 8 to 10 Milwaukee flights, concentrating on leisure trips to Florida, Las Vegas and Phoenix.
Delta is yet another key competitor, flying almost 13 percent of Milwaukee passengers.
Milwaukees airports annual passenger traffic increased by 54 percent in 09 vs. 02, to almost 7.5 million. During the same time period, Chicago OHares annual passenger count declined by almost 2 percent and Chicago Midways increased by almost 6 percent.
AirTran is expected to face serious competition for regional dominance from Southwest. Republic Airlines will also prove a formidable competitor. It currently handles almost 14 percent of Milwaukees passengers and close to another 9 percent through Midwest which it acquired last year.
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