0
RECAP: CoffeeTalk - Perspectives on Charlotte Douglas Airport
March 15, 2024
On March 6, 2024, ULI Charlotte hosted the CoffeeTalk session “Perspectives on Charlotte Douglas Airport” at the Goodwill Opportunity Campus. The session was led by Tracy Montross, Managing Director of Government Affairs at American Airlines. The event highlighted CLT’s unique position as an American Airlines hub, the impact it has on the local economy and the airport’s continued growth plans.
American Airlines offers 680 daily flights through Charlotte Douglas Airport (CLT) to 168 destinations. Dallas-Fort Worth (DFW), where the airline is headquartered, is the only airport with more daily American Airlines flights. CLT currently operates 114 gates, with 88 of them operated by American. Once the Concourse A North Phase II is complete, the airport will have 124 gates, with 93 operated by American.
Despite being the second-smallest hub market in terms of population for any airline other than Salt Lake City (SLC), CLT is the third-largest single-carrier hub in the world based on departures, after Atlanta (ATL) and Dallas-Fort Worth (DFW). Interestingly, 77 percent of customers at CLT never leave the airport, highlighting the significance of connecting flights. As American’s gateway to the Caribbean and Mexico, it also serves as a major gateway to smaller cities in the Southeast that may not be served if not for CLT’s American hub.
Operating a bank structure in a hub allows a significant number of customers to arrive and connect on flights in a short time period. Approximately 70 percent of all aircraft depart from CLT and return later in the day. Weather issues can substantially impact the hub-and-spoke system, leading to delays throughout the country. However, Montross noted that more than 85 percent of American flights arrive on time.
During the pandemic, American retired several older fleet types. The current fleet – half under 10 years old – is the youngest among U.S. carriers, quieter and more fuel efficient. Montross broke down the expenses related to ticket costs, which include federal taxes (21 percent), fuel expenses (26 percent), labor costs (23 percent), and other expenses (28 percent), with only 2 percent allocated to airline profit. Regional pilot shortages and the competitive labor market overall continue to constrain industry growth.
Several construction projects are underway at CLT with many more planned for the future, aimed at reducing chokepoints and improving efficiency. Efforts are also being made to address air traffic control issues through NextGen technologies, aiming to reduce flight delays caused by outdated systems. Noise mitigation programs are also in the works, with recommendations to modify flight restrictions and departure headings.
American is focused on improving its terminal and airfield infrastructure, with plans for new aircraft deliveries, redesigned clubs and holdrooms, onboard Wi-Fi and self-service tools through the app. Montross highlighted America’s AAdvantage Membership program, which is expanding benefits for members regardless of their status. Credit cards play a significant role in the airline’s business model.
Discussions during the Q&A session covered topics such as how to increase originating traffic, gate additions, regional support in smaller markets, relationships with foreign airlines, the likelihood of long-haul services such as Pacific Rim, and long-term infrastructure investments.
Overall, the event provided insights into the operations, challenges, and plans of Charlotte Douglas Airport, a critical transportation hub that will continue to shape the future of the Southeast.
Notes provided by Angela Vogel Daley, VP of Strategy and Operations for Yellow Duck Marketing
0
0
0