'Southwest Effect' may lower Ford fares

CASCADE TOWNSHIP, Mich. (WOOD) - Gerald R. Ford International Airport officials and area leaders hope adding Southwest Airlines service -- announced Monday -- will bring fare prices down.

Southwest is scheduled to start flying out of Ford Airport in August.

"As other airline compete with Southwest, it's clear that airfares will decline," Grand Rapids Mayor George Heartwell told 24 Hour News 8 Monday.

The Department of Transportation calls it the "Southwest Effect" -- lowering prices but increasing passenger traffic wherever the carrier is located.

"Every airline tends to increase their business when Southwest comes to town," said Terry Trippler, an industry expert with 44 years of experience.

Prices seem to lower when Southwest comes to town. Analysis done by 24 Hour News 8 shows several airports with lower fares once Southwest service was added.

In 2003, Philadelphia International Airport airfares were 20% higher than the national average. Once Southwest came to Philadelphia in May 2004, fares decreased to 4% below the national average.

In Denver in 2005, airfares were 9% higher than the national average. When Southwest landed in January 2006, fares were 2% lower than the national average.

Last year, fare prices at Atlanta's airport decreased 3.5% from that airport's 2011 average after Southwest set up shop.

A decrease in fares would be a welcome change for the Ford Airport in Cascade Township, where fares are 21% higher than the national average.

Trippler told 24 Hour News 8 the only two options for Southwest competitors is to compete or get out.

"The only thing that may be a downside -- maybe a left-handed type of downside be -- should another airline feel the pinch, and pull out," Trippler said.