THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Saturday, February 3, 1996             TAG: 9602030341
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER 
                                             LENGTH: Medium:   56 lines

LOOKING BACK: WITHOUT A FARE WAR, 1995 WAS A DOWN YEAR

Norfolk International Airport had a down 1995.

The absence of air fare price wars and the partial withdrawal of Continental Airlines reduced passenger volume by 21.4 percent, to just under 2.7 million people.

The airport, which serves South Hampton Roads, handled more than 3.4 million people in 1994.

But 1994 may be a misleading benchmark. The year saw vigorous air fare price wars that left many airlines gasping for profits and saw the ill-fated, low-priced Peanuts fares by Continental Airlines fizzle. At the height of the campaign, Continental was trying to fill 24 flights a day departing Norfolk.

In 1993, ``the last normal year,'' Shank said, the airport handled 2.6 million people, 2.3 percent fewer than last year.

Shank expects growth to be flat in 1996, with a possibility of a modest increase.

USAir remained the dominant carrier at Norfolk International Airport, with 40.4 percent of fliers on its jets or on affiliated commuter services.

In 1994, Continental surged to a 22.6 percent market share with the Peanuts campaign, but it declined to 10.6 percent last year after withdrawing about two-thirds of its flights.

Most airlines serving the airport regained market share lost in 1994 to Continental, though all but two, United and TWA, flew fewer passengers last year.

Besides Continental, only American Airlines lost market share last year as it withdrew from its hub in Raleigh/Durham, pulling several flights there from Norfolk and slipping to 7.2 percent from 7.7 percent in 1994.

Two new carriers, AirTran Airways and Midway Airlines, started flying from the airport last year. AirTran began offering direct service to its Orlando, Fla., hub in October. Midway flies three commuter flights daily to Raleigh/Durham, which it took over as a hub from American in October.

Norfolk International also saw increased competition from the Newport News/Williamsburg International Airport. ValuJet started flying to Atlanta from there with low fares, siphoning off some business last year. ILLUSTRATION: NORFOLK INTERNATIONAL AIRPORT

Graphic

[For a copy of the graphic, see microfilm for this date.]

JOHN CORBITT

The Virginian-Pilot

Passenger Volume

Market Share

SOURCE: Norfolk Airport Authority

KEYWORDS: NORFOLK INTERNATIONAL AIRPORT by CNB