Glasnost, Boeing hurt Anchorage - UPI Archives (original) (raw)

ANCHORAGE, Alaska -- So many flights between Europe and Asia refuel in Anchorage that the city picked up the nickname 'Crossroads of the World,' but the opening of Soviet airspace means some planes are taking shortcuts over Siberia and others soon will fly over Alaska in new long-range jets.

'This is all happening sooner than we expected because of Gorbachev and glasnost -- and even before the availability of long-range aircraft,' said Gina Marie Lindsey, development manager for Anchorage International Airport.

Alaska, seemingly so out of the way, so far off the beaten track, has been a convenient midway stop for flights using an over-the-Pole route between major cities in Europe and the Orient.

Anchorage, halfway between London and Tokyo, may be little more than just that, a stop, but the city has made the most of a geographical position that attracts international flights far out of proportion to its size, a city of less than a quarter million built on the edge of the Alaska wilderness.

The busy international terminal may 'really only be here because we're a big gas station,' acknowledged Robert Poe, Alaska deputy commissioner of transportation.

Airport and transportation officials realized a change was in the winds. They knew Boeing was developing a new model 747 jetliner capable of greater range, and they knew this would rob Anchorage of stopover traffic.

During a forum sponsored by the Anchorage Chamber of Commerce - which recently dropped its 25-year-old 'Crossroads of the World' motto - Poe pointed to a large blow-up picture of Boeing's long-range 747-400 and said, 'Here's the culprit.'

The first Boeing 747-400 is not scheduled to be delivered to a customer until December, company spokeswoman Elizabeth Reese said from Seattle, but already airline interest indicates the new jetliner may be the most popular Boeing since the original 747.

Alaska officials are right that the new plane will mean fewer international passenger stopovers.

However, officials preparing for the advent of the long-range jet were caught offguard by another unheralded development -- the opening of Soviet airspace.

Five years ago Soviet warplanes shot down Korean Air Lines flight 007 from New York to Seoul when the plane, after leaving its Anchorage refueling stop, strayed into Soviet airspace without permission.

Now, the Soviet Union is allowing flights between Europe and Asia to fly over Siberia -- an even more direct route than via Alaska.

First hints that Soviet leader Mikhail Gorbachev's glasnost also meant openness in airspace came last year in an Anchorage airport publication revealing the Soviets were authorizing non-stop service over Siberia along an 'air route that has been virtually inaccessible to Western air carriers.'

Airport officials acknowledged trans-Siberia flights are having an impact on Anchorage. Increasingly, Europe-Asia passengers will be peering down through the clouds at Siberia's vast landscape instead of at Mount McKinley.

Japan Air Lines, Air France, British Airways, KLM Royal Dutch Airlines, Scandinavian Airlines and British Caledonia operate 16 round-trip flights weekly between Europe and Asia that previously stopped in Anchorage but now fly over Siberia or refuel in Moscow, airport development manager Lindsey said.

'The future looks even more bleak if we look at the latest Japan Air Lines five-year plan which projects that by 1991 JAL's passenger flights through Anchorage will decrease from the current 17 round-trip flights per week to four,' Lindsey said.

Passengers using the 11 carriers traveling between Europe and Asia via Anchorage spend about 17 hours in the air, Poe said, and flying over once-forbidden Soviet territory can knock four hours off the flight time.

The Soviet Union charges for use of its airspace -- the United States does not -- but commercial airlines benefit by decreased fuel costs on a more direct route and the competitive advantage of offering shorter flights.

'If you're a business traveler and you can save four hours, you're going take it,' Poe said.

Only one carrier, Finnair, flies the polar route between Europe and Asia without refueling in Alaska or flying over the Soviet Union. Finnair flies down the Bering Strait between Alaska and Siberia using a DC-10 fitted with an extra fuel tank.

Federal Aviation Administration officials held an arctic airspace conference in Anchorage recently and FAA spokesman Paul Steucke said the next 10 years will see a steady increase in over-the-Pole traffic between Europe and Asia.

Since this route was pioneered three decades ago, most passenger flights have stopped in Anchorage and 98 percent of Europe-Asia cargo flights still do.

Even if the Soviet political climate changes and permission to use Soviet airspace is withdrawn, Anchorage's days as a passenger stopover location are numbered by the amount of time it takes Boeing to supply new model 747s to its customers.

'Eighteen customers have 117 on order, wait 118, another just came in,' Boeing's Reese said, noting there are another 66 options to buy. 'That's pretty good prior to delivery.'

In fact, Boeing is overwhelmed by the response for the jets that sell for up to $126 million apiece. Of course, not all these planes - with a range 1,000 miles more than 747s now in use -- are headed for Europe-Asia routes, but enough will go that route to hurt Anchorage.

Even an airline without permission to refuel in Moscow or fly over Siberia could fly around Soviet airspace nonstop between Asia and Europe in a 747-400, Poe said. 'There's not a lot we can do to dissuade them from taking advantage of these benefits.'

Each round-trip flight Anchorage loses means a direct loss of $79,748 in fees, taxes, fuel, duty-free shopping, concession and catering losses, Lindsey said.

Losing 13 weekly flights means a direct annual 54millionlosstothestate,airportandbusinesses,Lindseysaid,witharippleeffectof54 million loss to the state, airport and businesses, Lindsey said, with a ripple effect of 54millionlosstothestate,airportandbusinesses,Lindseysaid,witharippleeffectof90 million lost to the local economy each year.

But Lindsey said, 'Anchorage can retain a share of its title as air crossroads of the world' with the lucrative cargo business and international tourism.

With 98 percent of Europe-Asia cargo flights stopping in Anchorage and 70 percent of cargo between the Lower 48 states and Asia refueling in Anchorage, Gov. Steve Cowper said he wants to lure cargo companies north to make the airport an international cargo hub.

However, Reese noted that Boeing is looking at the possibility of developing a long-range 747 freighter, which means even cargo might bypass Anchorage in the future.

But cargo doesn't spend money at hotels, restaurants and gift shops so Alaska tourism officials are trying to create a market for international passenger flights to Anchorage.

Stopover flights are nearly full with passengers destined for Europe and Asia, leaving little room for Alaska-bound travelers and little incentive for airlines to sell tickets halfway, to the stopover. So state Commerce Department official Caren Mathis is shopping for an airline to bring Japanese and other foreign tourists just to Alaska. To make up for Alaska losing its distinction as air crossroads of the world, Mathis said Alaska must sell itself to foreign tourists, boosting the state as a destination -- not just a place to stop while your airplane gets gas.

With that in mind, the Anchorage Chamber of Commerce replaced its 'Crossroads of the World' logo, chamber officer Glenda Rhodes said, with a new motto, 'Star of the North.'