Chattanooga Metropolitan Airport officials said the loss of direct service to Houston, Tex., is also a $113,000 financial blow to the airport.
Mike Landguth, airport president, said Continental Airlines had been paying $53,000 in landing fees. He said the airport was also reaping about $60,000 from parking and concessions.
Mr. Landguth said the loss would be absorbed by not filling two budgeted staff positions.
Dan Jacobson, Airport Authority chairman, said airport officials were "keenly disappointed" by the fact that Continental decided to pull the Houston flight.
He noted that it took an extraordinary effort to land the direct Houston service, and he said Chattanooga travelers had been supporting it.
Mr. Landguth said soaring fuels costs lead Continental to drop the service under a "last in, first out" policy.
He said all the major airlines were making similar service cuts.
Mr. Jacobson said the airport had not raised rates to carriers for over six years.
He said that would be a "last resort" in helping meet the budgetary needs of the airport.
Mr. Landguth said he is continuing the meet with Continental officials. He said, "They like the market and, if fuel prices ever decrease, they might re-enter this market."
The Airport Authority approved a marketing campaign that includes:
$25,000 to public relations consultant Albert Waterhouse
$49,000 to Ramona Nicholson of Sports Media Placement, including $23,000 print and $26,000 radio
$17,000 to Ramona Nicholson of Sports Media Placement, including $14,000 billboards and $3,000 radio to promote the new Detroit service.
Officials said a new security access system is being installed at the airport.
It isw hoped to eventually extend the system so that it covers the entire perimeter of the airport.