Exec: CVG's lack of international flights a 'negative'

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Cincinnati/Northern Kentucky International Airport officials were in Japan this week recruiting two of Asia's largest airlines – potentially paving the way for new nonstop flights to a popular global business region for Greater Cincinnati companies.

CVG's executives were scheduled to meet with All Nippon Airways and Japan Airlines while in Asia as part of Kentucky Gov. Steve Beshear's two-week economic development visit to the Far East, The Enquirer learned Tuesday.

Greater Cincinnati is home to more than 120 Japanese-owned businesses employing 12,000 people, and Procter & Gamble also has major operations in Japan and across Asia. Demand for flights to Asia is questionable, however, especially with automotive giant Toyota leaving Northern Kentucky in the next few years.

CVG does not offer nonstop flights to any Asian countries, but one local executive with a Japanese-owned company says it's time that changes if Greater Cincinnati wants to grow and retain jobs.

"The lack of direct flights to international destinations, such as Tokyo, London and Frankfurt, has dramatically impacted our company and the way we do business," said Joe Workman, the Cincinnati-based U.S. region president of Kao Brands, a global beauty care products company.

Workman added: "We have also been challenged with our expansion efforts within Cincinnati and have had to look at other cities when considering expansion. The lack of direct international flights – other than Paris – has created a negative impression of Cincinnati and ... has even limited our ability to attract employees outside of Cincinnati."

Delta Air Lines' daily flight to Paris is the only nonstop overseas service offered from CVG. There are no guarantees either of Japan's two largest airlines are coming to town, and it's probably a long shot because most nonstop international flights from the U.S. originate from major cities.

Further, CVG officials' recruiting trip comes at a time when Toyota is in the process of relocating its North American manufacturing headquarters to Texas from Erlanger by 2017. But the presence of Japanese-owned companies remains strong enough that nonstop flights to Tokyo could encourage businesses to grow jobs here, regional business leaders say.

The city of Cincinnati is home to the most Japanese-owned companies in Ohio, according to Japan's Consulate-General in Detroit. Several other Japanese-owned companies are located less than 100 miles from Cincinnati, including the Honda plant in Greensburg, Indiana, and Toyota factory in Georgetown, Kentucky.

A handful of auto-industry sales companies have been showing interest in relocating to Greater Cincinnati, said Carla Romanelli, executive director of the Japan America Society of Greater Cincinnati. The organization did not have data available that reflects demand for flights to Japan.

"While the loss of Toyota Manufacturing is detrimental to the cause, this region remains home to a higher than (U.S.) average number of Japanese companies," said Doug Moormann, a long-time regional economic development leader. "We have banks prepared to cater to Japanese families; a Japanese language school at NKU; and an active Japan America Society. Couple these strengths with capacity at the airport, and airport officials have a quality product to offer Japanese carriers."

All Nippon Airways and Japan Airlines are headquartered in Tokyo, and each airline offers regular nonstop flights to eight U.S. cities, including New York, Chicago and Los Angeles. The Enquirer reported last year that Tokyo is among three international cities CVG officials are eyeing for new flights as part of a long-term growth plan. London and Frankfurt are the others.

Before beginning to downsize its once-robust CVG hub in 2005, Delta offered daily direct flights to four European cities, including London and Frankfurt. Delta also once offered a daily flight from CVG that stopped in Los Angeles and continued on to Japan. Delta cut the flight and almost all of its service to Asia after the 9/11 terrorist attacks.

CVG officials made it clear this week's trip was about preparing for the long-term direction of the airport. Life after Delta is on the horizon, and the Atlanta-based carrier is expected to pull the plug on its Cincinnati hub in the next five years.

"This trade mission provided an excellent opportunity to demonstrate CVG's role as the leading international airport in the region," airport CEO Candace McGraw said via email. "Both passenger and cargo traffic continues to build between CVG and Asia."

McGraw added: "We want to make sure CVG is positioned as the airport of choice when it comes to the Tri-State region and Japan. We are very pleased with the discussions we were able to have."

McGraw, Vice President Bobby Spann, Kenton County Airport Board Chairman Bill Robinson and board member Kevin Canafax were expected to return from Japan on Wednesday after a five-day trip. Spann is CVG's lead airline recruiter; Canafax heads the board's air-service committee.

Direct international flights are critical for a company like Kao Brands, which has more than 36,000 employees worldwide and operations on six continents. The company – which owns name brands such as Jergens, Curel and Biore – has more than 650 employees based in Greater Cincinnati. Local Kao officials did not disclose how many of those employees regularly travel internationally.

CVG's lack of international flights "not only has impacted productivity for those employees who are required to travel on a frequent basis, but has also forced us to hold meetings in other U.S. cities which offer direct flight options to make it easier for our international colleagues," Kao Brands' Workman said.

Delta's Paris flight continues to be popular for Greater Cincinnati business travelers. Paris' Charles de Gaulle Airport is the second-busiest airport in Europe behind London's Heathrow. Paris offers single-connection flights to 40 cities in Europe, the Middle East, Africa and India. Procter & Gamble and Evendale-based GE Aviation are major customers on CVG's Paris flight.

With the Paris flight, CVG has what Cleveland, Columbus, Indianapolis, Louisville, Dayton, St. Louis, Kansas City, Nashville and Milwaukee don't: a daily nonstop flight to Europe. In fact, the Paris flight is the only nonstop overseas service from Ohio, Kentucky and Indiana.

CVG officials have focused mostly in recent years on growing low-cost flights to U.S. cities, an effort to diversify airlines and lower the nation's highest ticket prices after years of Delta dominance. Delta's grip on CVG's business operations is expected to start loosening on Dec. 31, when the airport's contract with the airlines is set to expire.

Under the current deal, Delta has to approve almost all major business decisions at CVG. Delta's lease on Concourse B and the main ticketing counter expires in 2020. In a new agreement with the airlines, CVG may be able to offer incentives to carriers to try to lure new domestic and international flights to town.