Microsoft Corp., citing logistical challenges associated with reduced airlift capacity into New Orleans, has decided to relocate three conferences it had planned for the crescent city in 2007.

TechEd and MGX would each have brought 14,000 attendees to the city in June and July, respectively, while a smaller event, WinHec, was slated to attract about 4,000 attendees in May. Microsoft has yet to announce new sites for the conferences.

According to figures supplied by Louis Armstrong New Orleans International Airport, the airport has 109 daily departures, compared to 162 just before Hurricane Katrina hit in August 2005. Microsoft spokeswoman Robyn Kratzer says the issue “really was all about the airline infrastructure.” Kratzer also says that a “significant” portion of Microsoft attendees come from international destinations, “compounding the logistical challenges.”

Stephen Perry, president of the New Orleans Metropolitan Convention & Visitors Bureau, says that since the city resumed citywide conventions in June, it has successfully hosted large events without airlift problems, and that the city has not had other cancellations related to airlift.

Perry also notes that New Orleans, with a relatively small population and corporate base, has “never had as comprehensive an airlift” as business centers such as New York or Chicago. “We've hosted nine Super Bowls, the Jazz and Heritage Festival, and Mardi Gras,” says Perry. “We've consistently been one of the top four or five meeting destinations. And in every circumstance, we've been able to work around the lift challenge.”

Maggie Woodruff, deputy director of community and governmental affairs at New Orleans' airport, says that after Katrina, the business travelers who respond to disasters, such as FEMA personnel, insurance adjusters, and construction contractors, helped to make up for lost meetings. “It was demand that no one really anticipated that sustained us when the convention business was down,” says Woodruff, adding that airlines want assurance that demand will be sustained before adding more flights.

Working the Problem

For two days in September, representatives of four airlines — Continental, Southwest, American, and Delta — met with representatives of the New Orleans CVB, the airport, and Morial New Orleans Exhibition Hall Authority, as well as Mayor Ray Nagin and planners from groups including the American College of Cardiology, which expects to bring 17,000 cardiovascular professionals to New Orleans next March.

“We learned how they [the airlines] aggregate and collect information, and how they model out the allocation of their inventory,” Perry says. “We learned a tremendous amount.” The CVB has worked out a system with the airlines. “We are feeding them our entire convention schedule,” Perry says. “We're even showing them housing patterns on the shoulder nights of meetings and conventions so they can see full fly-in patterns. With this kind of information, they can add new flights and update equipment to meet the demand for groups such as the National Association of Realtors,” which is bringing 25,000 attendees to New Orleans in November.

Sue Gourley, vice president of conventions for the NAR, says that her attendees appear to be having no problem getting flights. When she met with airport officials during a site visit last December, they suggested finding a way to stagger arrivals and departures. “We came up with idea of doing volunteer activities before and after the convention,” she says. “It's really helped to spread things out.”

As for Microsoft, Kratzer says the company remains committed to bringing business back to New Orleans. Canceling the three 2007 meetings “was a very, very difficult decision for us,” she says.

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