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Missing in action: travel to Latin America is booming, yet Miami's airport is losing ground

Derek Reveron

Competitors are chipping away at Miami International Airport's dominance of U.S.-Latin America passenger traffic as the facility confronts several daunting roadblocks to improving service to the region. Delays and cost overruns plague key parts of a US$4.80 billion capital improvement program.

International passengers gripe about long security checkpoint lines and unfriendly staff. Elected officials for Miami-Dade County, which oversees the airport, have put its director on what amounts to probation, citing poor management, low employee morale and inefficient service.

Meanwhile, airports in Houston, Dallas-Fort Worth and Atlanta are adding more Latin American destinations. Miami International Airport Director Angela Gittens admits that competitors have gained modest ground. "The other airports are making some inroads in certain areas," says Gittens. "But our capital improvement plan will put us ahead on the facilities side as we work on customer service and security." The plan includes a crucial new $1.50 billion terminal for American Airlines, the airport's largest tenant by far. At press time, Gittens was stripped of her control of the expansion project.

The Miami airport remains the top U.S. gateway to Latin America. The airport offers 565 departures weekly to 34 destinations--up to eight times more than Atlanta, Houston and Dallas-Fort Worth. But the total number of passengers passing through Miami fell to 29 million in 2003, the first time since 1994 the figure dipped below 30 million, and it could do so again this year, experts predict, citing the shrinking roster of airlines at the airport. Spain's Iberia recently left Miami to create its own passenger hubs in Central America, which cut the number of daffy flights to Madrid to one from two while eliminating eight daily connecting flights from Miami to Latin America.

Carriers are also looking to avoid the Miami airport's long security checkpoint lines and its reputation for gruff service, says Hernan Galindo, vice president of AvGroup, an aviation consultancy. "Long-term, the biggest threat to Miami comes from other U.S. airports increasing service to the region" says Galindo. "More passengers are saying, 'Why do I have to go through Miami?'"

Some executive travelers have no choice. Bill Rojas, a product development manager for DHL Latin America, travels to the region about three times a month. "All things being equal, I would prefer to fly from Fort Lauderdale. It's neat, clean, new, and people give good service. But it doesn't have the flights or connections," says Rojas.

Miami International Airport is aware of the problem. "The primary complaint from international travelers--where we get the lowest rating in our surveys--is the courtesy from Customs and border protection," says Miguel Southwell, assistant director of business development at Miami International Airport.

Major airports in the southern United States, believing that passengers worldwide are looking for alternatives, are forging ahead. "We are adding more service to Latin America and letting them decide based on what's more convenient and effective," says Robert Kennedy, the director of marketing, public relations and intergovernmental affairs at HartsfieldJackson Atlanta International Airport. A $6 billion construction project will add an international terminal, runway and the second-tallest control tower in the world, says Kennedy. (The tallest is at the Kuala Lumpur International Airport in Malaysia.) The airport added four security checkpoints that reduced waiting times during peak travel periods from two hours to less than 20 minutes, says Kennedy.

The Houston Airport System hopes to become a hub for Asian and European traffic to and from Latin America. "We can be a broader alternative to Miami because it is much further south than we are," says Gennaro Pena, marketing director for Houston's airports.

Cargo rising. While the number of people coming through Miami International Airport may be dwindling, cargo traffic is on the rise. During the first five months of 2004, 604,956 tons of cargo came through the airport, 10% more than the same period a year earlier, according to Miami airport data. In May 2004 alone, cargo traffic jumped 18% to 123,490 tons. Most of Miami's air freight traffic is international, part of the reason why global shipping giant FedEx Express opened a $50 million logistics facility at Miami.

"Latin America growing, driving about 22% of the company's total revenue growth. This facility is very much needed," says David Bronczek, CEO of FedEx Express.

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