Audit prompts reduction in Vegas airline passenger count

Thursday, Aug. 23, 2001 | 11:02 a.m.

July numbers

McCarran International Airport reported 3.24 million passengers passed through its gates in July, a 2.7 percent increase over the 3.16 million people in July 2000.

Among the top five carriers, Southwest showed an 11.9 percent increase for the month over last year, from 902,872 to a record 1.01 million people, America West was up 6.6 percent from 522,898 to 557,656 and Las Vegas-based National was up 17 percent, from 191,976 to 224,642.

United and Delta were down in July. No. 3 United reported 242,084 passengers, an 8.8 percent decrease from the 265,417 reported in July 2000, and Delta was off 6.9 percent, from 247,660 in July 2000 to 230,665 this year.

McCarran International Airport statisticians have re-calculated the number of passengers that arrived in Las Vegas this year -- numbers carefully reviewed by competitors and gaming analysts -- after an audit determined that some America West Airlines passengers were counted twice.

The recalculation determined that the percentage increase in passengers for 2001 so far is about half the amount originally reported.

For the first seven months of the year, there were 21.8 million passengers that passed through McCarran, compared with the 21.3 million for the same period a year ago.

The 2.5 percent year-over-year increase corrected what originally was listed as about a 5 percent increase at the six-month mark. Based on the corrections made, America West's count for the year was off by more than 466,000 passengers.

McCarran spokeswoman Hilarie Grey said the error was discovered when statisticians realized America West's passenger growth seemed higher than they expected. A review of the figures determined that the Tempe, Ariz.-based airline was giving McCarran higher passenger counts than were reported to the U.S. Department of Transportation.

America West officials said the reporting error was an honest mistake that resulted when passengers that change planes in Las Vegas were counted as arriving passengers. Grey said a new employee began reporting the data when the errors occurred.

Three of Las Vegas' top five air carriers -- Southwest, America West and National -- routinely use McCarran as a transfer point for passengers heading for other destinations. America West and National use Las Vegas as a hub city, while Southwest uses McCarran as a popular stop.

All three airlines are asked to report separate figures for passengers arriving in Las Vegas and those transferring to another plane to go elsewhere. Grey said just more than 7 percent of the passengers who arrive at McCarran are destined for another city.

But Dave Ehlers, a gaming analyst with Las Vegas Investment Advisors, said the passenger count numbers are used to project trends and analyze potential revenue for the city's resorts.

National Airlines Chief Executive Officer Mike Conway said his company, a vigorous competitor of America West, would evaluate legal options as a result of what he called "a glaring error."

Conway said he believes the overcounting actually began October at a time when National was considering its options in the face of heavy financial losses. Conway said it's hard to determine how potential financiers perceived National and America West if they relied on those passenger statistics.

"It appeared that America West was really gaining in its share here," Conway said. "If those gains are so high, it makes the contribution of National seem less significant. It's what other people do with what is not incorrect data that concerns us."

Conway, a co-founder of America West, was ousted by that company's board as chief executive officer in December 1993 and eventually launched National with a core group of former America West employees. The two companies have been bitter rivals since National began flying in May 1999.

The revision of the 2001 statistics overshadowed a milestone for Southwest Airlines, the airport's dominant carrier, which recorded more than 1 million passengers for July, a record.