by Bradley Parsons
Staff Writer
Mayor John Peyton asked Delta Airlines to curb soaring Super Bowl airfares, but the response from Jacksonville’s largest air carrier indicated that the market, not the mayor, will decide ticket prices.
Peyton wrote Delta’s chief executive officer, Jerry Grinstein, in June, ask that he review ticket prices that climbed “three-fold for tickets in and out of Jacksonville during the first week of February 2005 (Super Bowl week).” Peyton said the prices could, “give the impression of price gouging.”
In a written response received last week, Paul Matsen, Delta’s chief marketing officer, said the airline hadn’t raised prices, but reduced its offering of discount seats. He said Delta would negotiate fares “priced below our published rates,” for select corporate customers.
Super Bowl week was a “peak travel period,” said Matsen that would encourage higher prices among airlines and area hotels.
Matsen said Delta’s fares for the week “compare favorably,” to other major Jacksonville carriers. On Friday, the airline’s website offered several round trip coach fares from New York with prices ranging from $387 to $639. One week later, the price drops to $222.
United’s flights for the same period range from $280 to $334, dropping to $228 the following week.
The rate disparity grows on discount travel websites. Travelocity offers six United flights arriving Friday and departing Monday, starting at $256. US Airways charges $287. The cheapest Delta fare available is $906. One week later the price drops to $204.
Peyton told Grinstein that he understood that travel and hospitality would “command higher prices,” during the Super Bowl. But he wanted Delta to keep its prices competitive with other airlines, said Peyton spokesperson Heather Murphy.
Delta carries the most passengers in and out of Jacksonville International Airport. Southwest Airlines routes more flights through JIA, but most of them are in-state or regional flights. Delta is the dominant carrier for national travelers, said JIA Chief Operating Officer Chip Snowden.
Still Snowden said the market would likely force Delta to lower rates. Although Delta carries the most passengers, Snowden said its prices would eventually drive customers to competitors US Airways, United, Continental, Southwest and AirTran.
“They have some pretty stiff competition up through Chicago and up and down the Eastern seaboard,” said Snowden. “The market is self-disciplining. Once they start losing seats to competition, they won’t want to lose market share.”
Snowden said JIA was a “significant moneymaker” for Delta due to its daily business travel. If prices remain high, Snowden said Delta would risk losing loyal customers.
“They’re conscious of the relationships they’ve built up, and they’re future conscious. They won’t want to lose their regulars.”
If raised rates send Delta passengers looking elsewhere, Snowden said JIA would allow competing airlines to add additional flights. Beyond that, Snowden said there was little JIA, or the City, could do to influence fares.