Air Service from your regional airport

The airline industry is in a period of rapid change. The major airlines

had faced fierce competition from low fare carriers in many large

markets and then the COVID pandemic hit and basically shut down

the entire airline industry. The large airlines had been relying on

smaller regional airlines to serve the smaller markets. The regional

carriers are still converting their fleets from turboprops and small 50

seat regional jets to larger 90 to 150 seats and less frequency. This

trend could result in the loss of air service in some of the small, less

populous markets. Currently, there are nine airports in Minnesota

with commercial service: Minneapolis-St. Paul-(HUB), Duluth,

Rochester, St. Cloud, Bemidji, Brainerd, Chisholm-Hibbing,

International Falls, and Thief River Falls.

The Local Airline Service Action Committee (LASAC) was organized

in 1964. The purpose of this small but influential organization is to

promote airline service to small and medium size communities in

Minnesota. This group has provided congressional testimony for the

continuation of the Essential Air Service Program, encouraged marketing

plans for member airports, provided united support in negotiations

with airlines to retain flight schedules and services in the

remote areas of our state and represented important business needs

of those communities to national leaders.

Having a hub airline at MSP contributes to both the quantity and

quality of air service in Minnesota. Without it there would be fewer

flights overall and fewer destinations with nonstop service.

Worthington, Mankato, Fergus Falls and Fairmont lost commercial air

service to their community in the 1990s. Grand Rapids lost commercial

air service in 2003.

Understanding your Airports Air Service needs

One of the most important factors in evaluating the ability of a community

to support expanded air service is to understand how people

in a region use the air service that's available. No airport retains all of

the passengers that travel to and from its core market area. The single

most important piece of data an airport can understand is what share

of passengers traveling to and from the immediate region use its services

and what share drive to competing airports. Drive diversion or

passenger "leakage" studies statistically analyze passenger data,

determining just how many core market passengers use their local

airport, and how many drive to other airports. The overall market size

is critical in making the case that a region can support more service.

This type of data can figure out why passengers drive to other airports.

It could be lower fares or non-stop flight options.

Understanding your local Airports Air Service needs is critical. Air

services drives airport revenue sources and stimulates regional economic

development growth including visitor expenditures and tax

revenues. By providing new travel choices, increased competition,

greater convenience and possibly lower fares, new travel and economic

opportunities are generated for local businesses, residents and

visitors. While air carriers are continually looking for new routes to

serve, they do not always have the resources and local data to examine

all potential routes. Airports play a critical role in bringing new

route opportunities to the attention of carriers. In addition, the air

service development strategy forms the basis for coordinating stakeholder

support and ensuring that efforts and resources are focused

on those opportunities with the greatest potential for success. Air service

development is therefore a vital activity which should be at the

center of the strategic planning process for every airport.

Air Service Marketing Program MnDOT Aeronautics

Air Service Marketing legislation enacted in 1997 (State Statute

360.0151) provides assistance to those communities in obtaining or

enhancing scheduled air service. Funding for this program comes

out of the State Airport Fund. The fund started at $150,000.

Eight Greater Minnesota communities with commercial air service

are eligible to apply for a reimbursable Air Service Marketing Grant

which has an appropriation of up to $300,000 biennially. Eligible

expenses for reimbursement are advertising of air service, public

relations activities intended to educate the public on the value of the

airport and its commercial passenger air service, marketing studies,

and service improvement activities such as route analysis.

The marketing program may also be used to fund studies to determine

the feasibility of commercial air service.

Grants may not be used for an activity that promotes an airport within

the service area of another airport, a promotional activity that

features one specific air carrier at an airport when more than one

air carrier serves the airport, administrative costs associated with

the marketing program or with the routine operation of the airport,

or payments to air carriers as fare subsidies, service subsidies, or

seat guarantees.

Continuing Support

The Office of Aeronautics continues to work with airport sponsors

(i.e., the municipality, county, airport authority that owns the airport)

to provide technical and financial assistance for this Air Service

Marketing Program.

For more information contact: Rylan Juran, Planning Director, Rylan.

Juran@state.mn.us