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USAir’s Return to O.C. Could Lower Fares : Competition: The carrier may discount tickets to promote its re-entry to John Wayne, leading others to do likewise.

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SPECIAL TO THE TIMES

Orange County air travelers might see fare discounts just in time for the summer travel season because a major player is ready to come back.

USAir won tentative approval Tuesday to resume service to John Wayne Airport, with two daily flights beginning as early as April 1 to its major hub in Pittsburgh. This would be the first direct, nonstop departure to that city from John Wayne, although many travelers would likely take connecting flights to other East Coast destinations.

“We really will have all the major carriers once USAir is back,” said Thomas Nulty, president of Associated Travel Management in Santa Ana. “This kind of rounds it out. The major airlines are finding that this is one area they can count on.”

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The return of the Phoenix-based carrier comes just two years after it gave up its 22 daily flights to the Bay area, Sacramento and Phoenix, where competition was especially fierce. The airline’s return will be made final if it passes certain lease and insurance requirements by March 1. The airline could begin service on April 1.

“We’re very pleased by that,” said Susan Young, a USAir spokeswoman. She said that airline officials would announce its specific plans, such as departure times, on Tuesday.

Southwest Airlines, based in Houston, did not apply for any slots. In the past, it has told airport officials that it would come to Orange County only if they could guarantee at least 15 daily departures.

Travelers can expect USAir to offer some sort of discount as a way to promote its return, even cut-rate fares during the busy summer travel season, Nulty said. That could prompt other airlines to counter with special promotions of their own in Orange County, he said.

“We’re probably in for a little fare activity,” he said. “It will be short term, but you can count on it.”

Airport officials said it was too early to tell what impact USAir’s re-entry would have on fares. It was only a few years ago that airlines began making nonstop flights to the East from the airport.

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Two smaller carriers also received tentative approval by the Orange County Board of Supervisors for two round-trips each.

Morris Air Service Corp., which has chartered two flights to Salt Lake City since 1992 under contract with Sierra Pacific Airline of Tucson, would fly as a scheduled carrier with 737-300 jets it either leases or owns. And MarkAir of Anchorage would make two daily trips to Seattle.

Morris taps into a niche market to Utah with average fares of $59 each way. Delta Airlines also serves Utah, which is especially popular among skiers this time of year.

Orange County “is an area that is very popular with the Utah market,” said June Morris, founder and chief executive of the airline.

MarkAir, which is in Chapter 11, must get approval from its bankruptcy judge to pay the $500,000 deposit on its slots. It also has to agree not to take ownership of the slots should its assets be sold, said airport spokeswoman Courtney Wierioch.

County supervisors have been deciding each year how to allocate a dozen slots that opened up after USAir and Midway pulled out in 1991. This year, six went to USAir, Morris and Mark. The remaining six went to carriers already in Orange County, as in years past.

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The 12 slots are among 73 daily departures that are regulated under the terms of a court-ordered settlement to a noise-damage suit brought more than a decade ago. The County Board of Supervisors reviews those “regulated” departures each year as well, although airlines have been guaranteed until 2005.

“It’s a bit unusual to have three new entrants in one year,” Wierioch said. “It’s a testament to what a strong market this is in an otherwise weak period in the industry.”

With just two flights a day each, the three new carriers at John Wayne are not expected to take gates of their own, but instead share terminal space with other airlines. Morris already enters and exits through American Airlines gates.

On Final Approach

After a two-year absence, USAir has tentatively been allotted space at John Wayne Airport, along with newcomers Morris Air Service Corp. and MarkAir. A list of airlines and their allocated daily departures beginning April 1:

Current Recommended Airline Allocation Allocation Alaska 3 4* America West 7 8 American 21 22 Continental 7 8 Delta 7 8 Northwest 7 6* TWA 3 2* United 6 7 MarkAir 0 2 Morris 0 2 USAir 0 2

* Alaska has been allotted an additional 333 departures a year. Northwest gave up an allocation but will keep 304 departures; and TWA will keep 93.

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Source: John Wayne Airport, 1993-94 Plan Year Allocation Summary

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