15
Figures 9-11 show O&D, total passengers, and annual aircraft operations, respectively.
• Actual passenger originations were slightly below the high forecast level in 1993 and
1994, but increased to above the high forecast level through 2000 (Figure 9). The
growth in 1996 was due, in large part, to the passenger ticket tax lapse that
stimulated passenger demand by lowering effective ticket prices. Northwest
continued to reduce real fares during 1997. This, combined with a strong economy,
caused originations to grow. Passenger originations and destinations in 1998 were
reduced because of the loss of service resulting from the Northwest strike in August
and September. O&D totals were also down in 1999 due to the strike, but
rebounded midway through the year to pre-strike levels. At the end of 2001, O&D
numbers decreased 8.4 percent from a high of 16.6 million after passengers
abstained from air travel in response to the events of September 11
th
. In 2002, due
to the lingering effects of September 11, 2001 and the economic downturn, O&D
passenger numbers continued their decline. By the end of the year, they were down
5.3 percent from 2001, to 14.4 million. The FAA expects domestic flights to return to
pre-September 11, 2001 levels by 2006. 2003 O&D passengers increased 2.1
percent over the year 2002 level to 14.7 million. The 2003 O&D level is 13.4 percent
below the high forecast.
• As shown in Figure 10, MSP total passenger activity closely paralleled the base case
forecast in 1993, but enplanement growth accelerated between 1994 and 1995 and
approached the high forecast in 1996. In 1999 and 2000, total passengers
exceeded the high forecast. Much of the passenger growth at MSP during the last
six years was the result of one-time factors. These include Northwest’s airline hub
consolidation that involved reducing operations at other airports to concentrate
connections at the two major hubs (MSP and DTW in 1992 and 1993), the
liberalization of Canadian markets which opened up MSP as a hub for cross-border
traffic beginning in 1995, and the lapse of the passenger ticket tax during most of
1996, which reduced effective fares to travelers and thereby increased demand.
Also, airlines have developed much more sophisticated reservation systems in
recent years, allowing them to generate more revenue by filling otherwise empty
seats with passengers flying on discount fares. The passenger growth rate in 1998
decreased from that of previous years because of the loss of service resulting from
the Northwest strike in August and September. Discount fares helped Northwest
regain lost passengers volumes in 1999. A decline in the number of total revenue
passengers occurred after September 11,
2001, with MSP experiencing an 8.3
percent decrease from 2000 levels. In 2002, MSP experienced another decline in
total revenue passengers, due to the aftereffects of September 11
th
coupled with the
sluggish economy. Passenger levels decreased 2.2 percent from 2001. In 2003
passenger levels began increasing, 2.5 percent over 2002. The 2003 passenger
level is 10 percent below the high forecast.
• Figure 11 compares total aircraft operations (as counted by the MSP Air Traffic
Control Tower) with the base case, high, and low forecasts. There was an initial
burst of aircraft operations in 1993 and 1994 as a result of significant build-up of
regional carrier flights by Northwest Airlink. Since that time, the factors that have
stimulated passenger traffic, such as the strong economy, Northwest’s hub