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April 3, 2003 – Air Capacity – Las Vegas

Loss of air capacity is putting occupancy rates at Las Vegas’ gaming industry hotels in a danger zone, a new Deutsche Bank report said. Las Vegas air service is now adequate only for maintaining reduced occupancy rates at around 80 percent. That compares with the local industry’s normal occupancy level of 90 percent or more. Barely half the seats lost by the November shutdown of National Airlines – 9 percent of total seats to Las Vegas, or about 6,000 seats a day – have returned to the market, the study estimated. If there are further cutbacks, they will substantially increase the risk for gaming operators.

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