BWI SOARED IN '94

THE BALTIMORE SUN

Blessed by the fiercest fare wars on the East Coast, Baltimore-Washington International Airport set an all-time record for passengers last year with a growth rate that was five times as high as the national average.

More than 12.8 million passengers used state-owned BWI last year, an increase of 3 million passengers, or 35.8 percent, over the previous year. The tally far exceeded BWI's previous busiest year in 1989, when the number of passengers hit 10.4 million shortly before the recession and Persian Gulfwar caused the number of airline passengers to plummet.

"The increase exceeded our expectations significantly," said BWI administrator Theodore E. Mathison.

The explosion -- which made BWI the fastest growing major airport in the country -- was sparked not only by discount prices but also by more daily flights and larger planes. The number of daily departures grew from 290 in 1993 to 350 last year.

"Obviously the low fares were the initial draw, but that gave rise to more flights," Mr. Mathison said. "Additional flights were a big plus."

In some instances, airlines such as Southwest and Continental doubled or even tripled their number of daily flights.

The combination of low fares and more frequent flights helped lure more passengers from the Washington area, giving the one-time stepchild of Washington-area airports nearly a third of the region's passengers, compared to 26.1 percent in 1993.

Airport officials have focused on improving inadequate transportation services from downtown Washington, D.C., and the Washington suburban areas. Passengers using ground transportation, such as shuttle buses and the BWI rail station, were up 94 percent for 1994, officials said.

The airport also experienced a surprising 23 percent jump in international traffic with the number of passengers rising from 653,000 in 1993 to 802,000 in 1994.

Mr. Mathison attributed that increase to significant traffic gains for British Airways, Ladeco and Icelandair as well last summer's Euram charters to Europe.

The passenger growth at BWI is not expected to continue, however.

In recent months, the rate has leveled off as carriers slow their expansion or cut unprofitable flights. Continental Airlines, for instance, recently trimmed 10 of its 40 daily departures as part of the Houston-based carrier's overhaul of its entire CalLite discount fare program.

And several smaller discount carriers recently abandoned their short-lived service at BWI, saying they were unable to attract enough passengers.

BWI officials are predicting traffic around 13 million in 1995, though the unexpected arrival of a new airline could boost traffic unexpectedly, Mr. Mathison said.

"If we saw a new entrant come in, that could run the numbers up," he said. In addition, the airport expects to open six new gates on Pier C, largely for Southwest Airlines whose debut at BWI in September 1993 launched the fare wars.

But the Dallas-based carrier, which is currently fending off attacks on the West Coast from United Airlines' new discount dTC service, is not expected to add flights here quickly this year.

On the downside for BWI is the possibility of significant cuts by USAir because of its continuing financial woes. The Arlington, Va.-based carrier, which handles nearly half the 34,000 daily passengers at BWI, has lost more than $2.6 billion since 1988.

The airline is seeking $2.5 billion in cuts over the next five years from its employees. It has vowed to cut flights if it can't reach an agreement soon.

Despite some uncertainty in the industry, BWI officials are moving ahead with plans to expand the airport's parking garage by 3,400 spaces by 1996.

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