Air Service Development Flashcards
Why is Air Service Development important?
Increased Revenue Stream
Community Jobs
How are small community airports connected to the air service system?
As spokes within the hub and spoke system.
Smaller cities, sometimes known as __________ __________, consider air service an ___________ __________.
spoke cities / economic necessity
Challenges to small cities attracting air service include:
- Proximity to a legacy network hub
- Proximity to a community with low-cost air service
- Fragmentation based on nearby competing airports
- Seasonal tourism passenger markets
- Physical airport constraints
To make an effective case to prospective airlines, what three things must be understood or considered by the airport / community?
- Fares and service to nearby, similar communities
- Airline revenue structures
- Financial and non-financial incentives that can be offered
Define Air Service Development (ASD).
Activities undertaken by an airport and/or affiliated communities to retain or improve air service access and capacity in order to improve the regional economy.
Regarding air service, what is the primary goal of an airport?
Retention of existing air service.
What is important for airport executives to consider regarding ASD, especially those that do not believe airports and communities should try to influence an air carriers decision to serve a market?
AEs must consider the possibility that an air carrier may not have all the info necessary to make a good decision about serving their airport.
Like any business, airlines weigh serving a destination based on potential ____________ versus _____________.
revenues / expenses
An airport wants to assist an airline with marketing. Can an airport pay for a billboard ad containing the airline destination and airline logo? Please explain.
Yes and No. It is dependent upon if the airport logo also exists on the ad and if the ad favors the airport vs. the airline.
Airports with high ____________ costs will find it more difficult to attract air service. For example, this would result in higher landing fees, terminal rents, parking rates, etc. Additionally, airports that have access issues from the ___________ ___________ source, will also struggle with retaining or attracting air service.
infrastructure / primary intermodal
To determine air service needs, market research should be conducted to determine current ____________ ____________, whether artificially high ___________ are prevalent, or ____________ exists.
route deficiencies / airfares / leakage
What factors contribute to leakage from small airports?
- A large hub airport or one served by a low cost carrier within 100 miles.
- Passengers will drive for more (or perceived) flight options or non-stops.
In support of ASD programs, airport revenues are limited to promoting the ____________ by sponsor assurances. Additional ___________ should come from private industry, convention / visitor bureaus, and area attractions.
airport / funding
What two primary forms of federal assistance can provide ASD aid to small communities?
- Essential Air Service (EAS)
2. Small Community Air Service Development Program (SCASDP)
While small communities may not have passenger demands due to population, employment, and income levels, there may be demand based on what?
Lack of viable alternatives.
What entity is the fundamental stakeholder and in the best position to provide perspective and direction to the ASD effort?
The airport.
From which Act did the SCASDP evolve?
Wendell H. Ford Aviation Investment and Reform Act of 2000
How is the SCASDP executed?
- Sec. of Transp. authorized to issue up to 40 grants per year (no more than 4 per state) to secure enhancements that will benefit a community’s transportation needs.
- Benefits must be expected to continue beyond initial expenditures
- Community must be no larger than a small hub.
- Air service must be insufficient or charge unreasonably high airfares.
SCASDP grants can be used for what six things related to ASD?
- Expenses of new advertising or promotional activities
- New studies to measure air service deficiencies
- Measure traffic loss or diversion to other communities
- New, dedicated air service development staff
- Market research by advertising or public relations agencies, universities, or consulting firms
- Air carrier subsidies for a max of three years
An ASD evaluation should begin with an ____________ that considers existing air service, seasonal factors, and anomalies to determine ____________, ____________ ____________ and ratio of _____________ & ____________ passengers.
assessment / destination / load factors / origin & destination (O&D)
What if assessment of O&D passenger estimates demonstrate a viable market?
Airport could propose new non-stop flights to airline(s).
- What is an airport’s catchment area?
2. Name some factors that influence this.
- It is the geographic reach of an airport’s service area.
2. airport access, other airports, road network, airfares, flight availability, and frequency
While existing air service can serve as a ___________ tool, luring new air carrier service may affect the airport’s ability to _________ the original service.
marketing / retain