National Airlines stepping into Atlantic City territory

Wednesday, Sept. 1, 1999 | 11:17 a.m.

National Airlines, which just completed its third month of operations, said it will begin scheduled service to Philadelphia Nov. 4.

The Las Vegas-based air carrier plans a morning and an evening departure to and from the largest major city near the gambling city of Atlantic City, N.J.

"Philadelphia fits perfectly into National Airlines' route system, which is designed to provide nonstop service to Las Vegas, particularly from the East," said Mark Suman, senior vice president of marketing and strategic planning.

National recently briefed local travel agents about the airline's interest in expansion to Philadelphia, Miami and Newark, N.J. A spokesman for the airline said Miami and Newark are markets National is continuing to investigate, but no plans have been announced for flights.

National will take delivery of its eighth 175-passenger Boeing 757 twin-engine jet allowing for the expansion.

National plans a $308 round-trip fare for some seats on Philadelphia flights. Suman said prices would be 30 percent below the lowest existing unrestricted coach and first-class ticket prices for that market.

The $308 fare is for a 14-day advance purchase. National also is offering unrestricted fares of $449 one way on coach and $599 one way for first class.

Travel agents can begin selling tickets to Philadelphia on Monday. Flights will leave McCarran International Airport daily at 9:30 a.m. and 10:45 p.m., arriving at 5:10 p.m. and 6:25 a.m., respectively. Flights from Philadelphia's Terminal E leave at 8:10 a.m. and 6:10 p.m., arriving in Las Vegas at 10:30 a.m. and 8:30 p.m., respectively.

National joins two other airlines with two nonstop flights a day each to Philadelphia. America West Airlines recently added its second direct flight and USAirways also has two daily flights.

Philadelphia will be the seventh city on National's route. All flights are to or from its Las Vegas hub. The airline serves Los Angeles, San Francisco, New York's John F. Kennedy International Airport and Chicago's Midway Airport. On Sept. 30, flights begin to Dallas-Fort Worth.

National spokesman Dik Shimizu said Philadelphia's proximity to Atlantic City had nothing to do with the decision to initiate service.

"We look at things like existing nonstop air service, fare levels and the population base," Shimizu said. "We didn't look at it in terms of trying to take people away from Atlantic City."

Harrah's Entertainment Inc. of Las Vegas, the second-biggest U.S. gambling company, was the main financial backer of National. Harrah's has big hotel-casinos in both Las Vegas and Atlantic City.

Dave Ehlers, a gaming analyst with Las Vegas Investment Advisors, said National's foray into Philadelphia isn't so much a bid for Atlantic City casino customers as it is an expansion into the populous Northeast.

"Just look at the load factors on the flights from Kennedy Airport," Ehlers said. "They've been outstanding. That's about 700 seats a day on four flights from New York. Now, Mike (Conway, National's chief executive officer) is going into another big northeastern city that has been underserved.

"You never can tell how big this thing's going to get," Ehlers said.

According to McCarran International Airport passenger statistics, National has become Las Vegas' No. 11 carrier out of 18 with scheduled service, flying as many passengers as TWA. Through July, National had flown more than 81,000 passengers, with more than 52,000 of those flying in the company's second month of operations.