Airport manager downplays service

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The four major airports in North Dakota are considered at-risk for losing service if the airport industry can't regain its footing within a year, a recent report says.

But Greg Haug, airport manager for Bismarck Municipal Airport, said service is still secure.

A report conducted for the Business Travel Coalition identified 100 regional markets and 50 major airports that would suffer from the airline industry as it struggles with rising fuel costs. The coalition also suggested policy priorities that should be considered by lawmakers, including re-regulation of the industry.

According to the report, if oil prices stay near $130 a barrel, many major airlines will end up defaulting on debts and heading toward bankruptcy. Jet fuel prices are up 80 percent over last year.

Every $10 increase in the price of oil results in $4 billion in additional costs for the 40 passenger-only airlines, according to the report, conducted by AirlineForecasts, LLC.

The airports first affected would be in smaller markets, according to the report.

But Northwest Airlines has assured that they will not be discontinuing service, and Haug said he's heard nothing from any other airports. Capacities may again be reduced by the fall, but service will not be discontinued, he said.

"We have no indication from Northwest or United or Allegiant that we're losing any air service,"he said.

The industry is struggling, he said. Markets such as Bismarck are where airlines are able to charge higher fares due to lower competition; it's where they can make up some money from losses created in highly-competitive hub airports.

(Reach reporter Crystal Reid at 250-8261 or at crystal.reid@;bismarcktribune.com.)

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