Analyst reitterates need for long-haul flights to Las Vegas

Friday, Feb. 20, 1998 | 10:32 a.m.

America West Airlines, the No. 2 carrier at McCarran International by passenger volume, isn't the only company contributing to seat capacity issues that have some casino companies anxious.

Jason Ader, an analyst with New York-based Bear, Stearns & Co. Inc., drove that point home on Thursday in a follow-up to the release of a report earlier this week in which he downgraded the ratings of three gaming stocks.

Ader, who modified his "buy" rating to "attractive" for Mirage Resorts Inc., MGM Grand Inc. and Circus Circus Enterprises, announced Thursday his company is initiating coverage of air service trends in the Las Vegas market with periodic reports on airline statistics as they relate to the gaming industry.

Ader outlined the change in available seat capacity for the eight long-haul carriers serving McCarran from January 1997 to last month. Of the eight, five were down and one was flat, with the total daily seats available down 6.1 percent to 28,136.

Airlines with a negative change: American (down 22.5 percent to 1,481), Continental (down 19.8 percent to 1,701), Delta (down 10.1 percent to 4,508), America West (down 6.8 percent to 11,258) and United (down 4 percent to 5,560). USAirways remained the same at 768.

McCarran statistics show USAirways having 640 average daily seats available today, which would be 16.7 percent fewer than the number posted for the previous year.

Two other carriers showed increases, Northwest (up 39.3 percent to 1,808) and TWA (up 7.3 percent to 1,052).

Long-haul carriers are considered key to the issue because they fly larger planes capable of carrying expanded first-class sections, the ones generally thought to be the transportation of choice for the high-rolling customers that would patronize Bellagio, Paris and Mandalay Bay. Long-range haulers also would bring people from the East Coast -- guests likely to stay longer than a weekend.

Southwest Airlines, the leading McCarran carrier by passenger volume, is considered a short hauler with routes generally under 1,000 miles. The company, which increased service by four flights in the past year, also will add three Saturday flights in April on relatively long hauls by Southwest standards -- to Spokane, Wash.; Tulsa, Okla.; and New Orleans.

Ader also applauded Sen. Richard Bryan's announcement that he would conduct a meeting of government, business and tourism leaders in the spring to air possible solutions to transportation problems that not all gaming leaders agree exist.