From Deseret News archives:

Utah hopes to hang on to hub

Published: Saturday, Aug. 21, 2004 6:07 p.m. MDT
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In Utah, there are a couple of lingering worries that keep people up at night. One is that the government will decide to close Hill Air Force Base. The other is that Delta Airlines will be forced to close its hub in Salt Lake City.

Hill seems safe for the moment, although another round of base closures is looming and the state remains as politically weak as ever.

Unfortunately, the Delta nightmare is looming as a possibility as the Atlanta-based company struggles to avoid bankruptcy.

The company has given no indication that it intends to abandon Utah, but an industry analyst in New York suggested last week that the airline could not be profitable unless it does so.

Last week, Delta officials announced a plan to cut jobs and change its pay structure. No one said anything about closing hubs, but Utahns were left trying to quell their rapid heart rates and sweaty palms. Delta's losses have been huge in recent years, and it has an estimated debt of $20 billion. The potential for more bad news is certainly real.

But would a Delta demotion be all bad for Utah? Not necessarily. Chicken Little may be a Delta frequent flyer, but the loss of a hub status wouldn't mean the sky is falling.

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Certainly, jobs would be lost. Delta employs 4,000 people directly in Utah, and hundreds of pilots live along the Wasatch Front. Pilots are mobile enough to stay here if they choose, but many may decide to leave.

But anyone who believes in the power of free-market principles and in the growing Wasatch Front's ability to remain vibrant, has to see some potential advantages. Other airlines would fill the void. Salt Lake may no longer have the non-stop flights that come with many daily connections, but the competition over popular routes out of Utah inevitably would bring prices down.

That has been the experience in other cities that have lost the status of a "hub city." In fact, some of those cities now serve more air passengers than they did as hubs.

Surely, Utah would remain a valuable tourist destination. Its growing population would guarantee a steady demand for flights.

That's not to say Utahns should be quick to cast off their old friend. Delta, and the old Western Airlines before it, have given Salt Lake City a toehold in competition with other cities for business in the region. It has been a badge of prestige, and it has allowed for partnerships that have helped the convention and tourism businesses, as well as the state's efforts to attract business abroad.

And yet, few industries seem as volatile as the airline industry. Delta's future here — indeed, its future overall — is uncertain. But Utahns should feel confident they could survive whatever happens.

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