AirTran flying to Grand Rapids

GRAND RAPIDS, Mich. (WOOD) - AirTran Airways is set to begin flying out of Gerald R. Ford International Airport, Dick DeVos said in a statement Wednesday. DeVos serves as chair of the Regional Air Alliance of West Michigan.

Details of the service -- including when it will begin and what cities will be served -- are expected to be announced Thursday. Orlando-based AirTran has its primary hub in Atlanta and recently created a second hub in Milwaukee.

Airline industry analyst Robert Mann told 24 Hour News 8 he would not be surprised to see flights from Grand Rapids to those two hubs "with the outside possibility of nonstop service to Orlando."

AirTran bills itself as a low-fare carrier aimed at business travelers.

"This partnership is a win-win for the airline and our community," DeVos said in the Wednesday afternoon statement. "There are few opportunities which come along that bring immediate benefit to our regions' consumers, our quality of life and our area's economic development goals. This is clearly one of those opportunities."

So will the service bring down fares at Ford, usually ranked as one of the most expensive airports to fly in and out of in the country?

"I think this is the first step," said Sri Sundaram, the Grand Valley State University finance department chair. "This is not going to immediately knock down a significant amount of prices."

But the AirTran decision shows the low-cost carrier thinks the Grand Rapids market is viable, Sundaram said, after other carriers passed on flying in and out of Ford International.

"That's going to attract, hopefully, some other discount airlines to come or additional flights to come here," he said.

AirTran could draw passengers to Ford who usually use other airports. If that drives up total passenger numbers at the airport, that too could make it attractive to other airlines.

Mann noted AirTran is "perhaps the lowest-cost major carrier" and said it can offer lower fares "profitably," but said whether fares actually will come down will depend on the market.

And the market depends on competition.

Two other airlines told 24 Hour News 8 on Wednesday they were expanding or interested in expanding service at Ford.

American Airlines' regional carrier, American Eagle, will add a flight to Chicago in April, a spokeswoman said. An Allegiant spokeswoman said the carrier looks to expand service to and from Grand Rapids.

Price isn't the only place where AirTran's move could factor in to the West Michigan economy. More flights could help encourage West Michigan businesses to keep and add jobs here -- and help encourage outside businesses to bring work to the region.

"One of the key things they're looking at is how easily [a city] is accessible by airlines and how reasonable the fares are," Sundaram said.

Birgit Klohs, head of economic development group the Right Place, said the agency has had very few meetings recently with companies who don't ask about the airport.

"We find that more and more people today are internationally interactive," she said. "Not just the big ones, not just Amway and Steelcase and Bissell, but our small mid-size manufacturers who have to be competitive."

Klohs' remarks came Wednesday at the public launch of the Regional Air Alliance, a group of local business leaders quietly formed in 2008 to work to improve air service in to and out of the area.