Effects of Airline Industry Changes on Small- and Non-Hub Airports (2015)

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163 C H A P T E R 9 9.1 Introduction This chapter provides recommended ASD strategies for airport managers and community leaders in communities with small- or non-hub airports to use in retaining or attracting new air service. The strategies presented here were developed as a result of synthesizing the quantita- tive data contained in Chapters 3, 7, and 8 and the qualitative data presented in Chapters 4, 5, 6, and 7. Users of these strategies can customize their strategies based on their responses to a self-assessment tool that determine the specific needs and air service environment of the airport and community. 9.2 Addressing Uncertainty and Risk in Air Service Development A key lesson from this research is that airport and community leaders have limited control over many of the factors that ultimately lead to an air carrier starting or ending air service in a community. The lack of control of airport managers over their own destiny is largely a result of various sources of risk and uncertainty that range from global to local in scope. As discussed in earlier chapters, current sources of airline industry and business cycle uncertainty and risk that can affect ASD efforts include the following. For more detail on Addressing Uncertainty and Risk in Airport Management, see ACRP Report 76. • Global Economic Conditions: Factors such as global financial crises can negatively affect the overall demand for air transportation, which may result in fewer new destinations or reduc- tions in service to existing locations. Additionally, the global demand and supply for crude oil affects the price paid by airlines, which is one of the major cost drivers of beginning new service in a community (much larger than airport fees). The price of oil can also affect airline decisions on the types of aircraft to operate, which can limit the potential options for com- munities in trying to attract or retain service. For example, the planned reduction of small regional jets by many carriers is due in part to the expected high price of jet fuel over the com- ing decades (despite oil’s recent price collapse in late 2014). • Local Economic Conditions: The reduction or closing of significant employers in a region affects the local demand for air service while reducing the demand for high-yield in-bound business travelers to the region. Similarly, a short-term boom in economic growth in a region can lead to tremendous growth in air service that may not be sustainable if the drivers of the economic growth slow or reverse. For example, if global demand for crude oil decreases, recent air service gains in western North Dakota might not be sustained. • Airline Strategy: Communities are often beholden to the internal decision-making processes of airlines during efforts to attract or retain air service. The recent decision by many legacy Strategies

164 Effects of Airline Industry Changes on Small- and Non-Hub Airports carriers to shift company focus from market share to profitability has led to an overall strat- egy of constrained demand across the industry that has resulted in a shift from smaller, less- efficient 50-seat regional jets to larger aircraft which has led to the reduction of flights in many smaller communities. Additionally, many communities are surprised to learn of inter- nal airline policies that prohibit route planners to approve new routes that fly over an existing network hub, even if local demand justifies a new service. • Airline consolidation: The recent trend of airline consolidation in the United States has had several implications for air service in smaller communities. First, the consolidation of legacy and low-cost carriers has reduced the overall number of air carriers that small communities can target with requests for new air service routes. Second, as a result of consolidation, airlines have decided to eliminate many of their smaller network hubs (e.g., Pittsburgh, Cleveland, St. Louis, Memphis, and Cincinnati) that often have fed legacy-carrier flights to small- and non-hub airports. The reduction in service to these hubs has strained capacity at larger hubs and made the criteria for service to these more congested hubs more difficult for many small airports to achieve. • LCC and ULCC Growth: Many smaller airports look to increase or replace lost legacy network service by focusing on attracting low-cost or ultra-low-cost carriers. LCCs and ULCCs often provide less-than-daily point-to-point service to vacation destinations or serve secondary airports in major metropolitan areas. If LCCs or ULCCs begin to compete with incumbent legacy carriers serving a location on established routes, communities risk losing the ability to connect through a legacy carrier’s route network. Airports and communities must balance the local demand for more flights with a more holistic view of a region’s connectivity to top domestic and worldwide destinations. • Competition from Other Airports: The ability of small airports to attract or retain air service is significantly affected by the air service profile and performance of nearby airports. Small air- ports within the catchment areas of large- or medium-hub airports with legacy-carrier network connectivity and/or significant LCC routes are particularly disadvantaged in terms of flight availability and lower airfares. The decision by a major network carrier to begin service at a competing small-hub airport can drastically affect the sustainability of service at another air- port. Leakage to larger hub or even competing small- and non-hub airports—a significant chal- lenge for many small- and non-hub airports—is only partially controlled by airport managers. • Federal Regulatory Policy: Actions taken by the President, Congress, and the FAA can affect the ability of small- and non-hub airports to attract or retain air service. Changes to appropriations or authorizing legislation of programs such as the Essential Air Service (EAS) program or the Small Community Air Service Development (SCASD) grant program affect how many small com- munities subsidize or attract new service. Additionally, capacity initiatives passed by Congress and implemented by the FAA at key hub airports such as Ronald Reagan Washington National Airport (DCA) make it difficult for smaller airports to gain access to landing slots reserved for more profitable routes. Finally, air traffic control initiatives implemented by the FAA during poor weather often result in higher than average delay or cancellation rates by air carriers at smaller airports, which can threaten the sustainability of successful ASD attraction efforts. • Large-Scale Crises: The effect of large-scale crises (e.g., the September 11th terrorist attacks in the United States), infectious diseases (e.g., SARS, avian flu, and Ebola), and severe weather or geological events (e.g., the Icelandic volcanic eruption of 2010) can all cause drastic changes to travel demand as well as airline business structures that can have a significant effect on the ASD environment. Given the uncertainties and risks posed by each of these challenges, what can airport man- agers and community leaders do to improve their ability to attract or retain new air ser- vice? Are there strategies that airport managers and community leaders can bring to bear to improve the market for new air service in their regions while insulating themselves from

Strategies 165 uncertainty or is the announcement of new flights by airlines entirely a function of external factors? The answer is somewhere between these extremes. For example, Sonoma, which experienced the largest increase in seats from 2001 to 2013 of the case study airports, and Toledo, which experienced the largest decrease in seats over the same period, implemented similar ASD programs targeted at attracting new service to their markets. However, Toledo’s proximity to Detroit Wayne County Airport (DTW) (an easy 1-hour drive) and its relatively weak economy have likely been major factors in its air service reductions, while Sonoma has benefitted from significant regional investment in tourism and the unpredictability of driv- ing from Sonoma and Napa to San Francisco International Airport (SFO). To increase the likelihood of success by airport managers and community leaders in attract- ing or retaining air service, the researchers have developed a set of strategies based on the analyses presented in the earlier chapters. Before using these strategies, airport managers, com- munity leaders, and their ASD consultants must conduct a rigorous and honest assessment of their current air service profile using the tools provided in this guide. This self-assessment will allow airport managers to determine what are realistic expectations for new air service opportunities and what actions may be necessary to improve the chances for new service. Additionally, by conducting the self-assessment, airport and community leaders will be in a better position to explain realistic expectations for the community, why particular ASD efforts might succeed or fail, and what steps the community can take to improve chances for air service attraction or retention. 9.3 ASD Self-Assessment Tool To provide a custom set of strategies for small airports facing diverse sets of challenges, a self- assessment tool has been designed that asks airport managers and community leaders to answer a series of brief questions in five categories: • Local Economic Performance • Existing Air Service Profile • Recent Changes in Air Service Performance • Airline and Community Incentive Programs • Level of Community Engagement These categories were selected because of the importance placed on them by airport and com- munity leaders who have led successful air service development efforts. Local Economic Performance Response Score Does your region have a major industry or business that is dependent upon airline service? Yes= 1 No=0 Is the count of annual enplaned passengers greater than your current population total? Yes= 1 No=0 Over the past 5 years, has your region experienced employment growth greater than or equal to the national average? Yes= 1 No=0 Over the past 5 years, has your region experienced per capita income growth greater than or equal to the national average? Yes= 1 No=0 Total Score Total Score 3 or more = Strong Economic Performance Total Score 2 or less = Weak Economic Performance

166 Effects of Airline Industry Changes on Small- and Non-Hub Airports Airline and Community Incentive Programs Response Score Does your airport currently offer fee waivers or reduced terminal rent for new air carriers or new service by existing air carriers? Yes=1 No=0 Does your airport currently offer marketing support for new air service? Yes= 1 No=0 Has your airport applied for a U.S. DOT Small Community Air Service Development (SCASD) grant over the past 5 years? Yes=1 No=0 Over the past 5 years, has your community offered a minimum revenue guarantee (MRG) or guaranteed ticket purchases (travel bank) to an air carrier for new service? Yes=1 No=0 Has your current airline incentive program been in effect for more than 2 years? Yes=1 No=0 Total Score Total Score 3 or more = Strong Airline and Community Incentive Programs Total Score 2 or less = Weak Airline and Community Incentive Programs Existing Air Service Profile Response Score Does your airport currently have service to a legacy-carrier network hub? Yes=1 No=0 Does your airport currently have service to more than one legacy-carrier network hub? Yes= 1 No=0 Does your airport currently have low-cost carrier service? Yes=1 No=0 Is your airport within a two-hour drive of an airport with competing air service? Yes=0 No=1 Does your airport face competition from alternative modes of transportation such as rail or bus service in any key markets? Yes=0 No=1 Total Score Total Score 3 or more = Strong Air Service Profile Total Score 2 or less = Weak Air Service Profile Recent Changes in Air Service Performance Response Score Has your airport seen a significant increase in the number of available airline seats over the past 5 years? Yes, More than 20%=2 Yes, Between 5% and 20%=1 No=0 Has your airport seen a significant increase in the number of daily flights over the past 5 years? Yes, More than 20%= 2 Yes, Between 5% and 20%=1 No=0 Has your airport seen an increase in overall connectivity (measured by GRA QSI score) over the past 5 years? Yes, More than 20%= 2 Yes, Between 5% and 20%=1 No=0 Has your airport successfully attracted new legacy-carrier service to a network hub over the past 5 years? Yes=1 No=0 Has your airport successfully attracted new low-cost carrier service to an origin-destination market over the past 5 years? Yes=1 No=0 Total Score Total Score 4 or more = Strong Change in Air Service Performance Total Score 3 or less = Weak Change in Air Service Performance

Strategies 167 As shown in each series of questions, it is suggested that each answer be converted into a simple integer score that can be summed to provide an overall assessment of whether an airport is strong or weak in each category. Although this simplification may not capture all the ways in which airports vary with respect to air service development, it provides a straight- forward framework in which to consider different strategies for retaining or improving airline service. The design of the self-assessment has not been formally field-tested, but is based pri- marily on the findings and outcomes observed during the case study and focus group analyses described earlier. Based on the self-assessment scores for each category, airport managers will find specialized strategies that can be used to improve subpar performance in one area or to build on an area of strength. The remainder of this chapter outlines strategies to improve ASD efforts. 9.4 Recommended Strategies The following ASD strategies are organized according to either strong or weak performance in an airport’s self-assessment of their air service development. Given the amount of uncertainty and risk inherent in the airline industry, the strategies presented here are designed to focus on the factors that airport managers and community leaders can control or at least influence. Also, although the strategies presented here are designed to apply to various situations, local, institu- tional, funding, or political factors may lessen their applicability. Given the current economic and market conditions affecting many small communities, seeking to retain existing air service may be an effective strategy. 9.4.1 Strong Local Economic Performance • Ensure that Major Businesses that Depend on Air Service are Active Members of Airline Attraction Committees Many communities that have been successful in attracting and retaining air service and have experienced strong economic performance have involved representatives from major businesses or industries that rely heavily on air travel. Local business participation on airline attraction committees establishes a sense of buy-in and loyalty from major employers to choose to fly from smaller airports and to contribute financially to ASD efforts. Additionally, business participation Level of Community Engagement Response Score Does your airport management conduct regularly scheduled presentations to community organizations (Rotary, Chamber of Commerce, etc.)? Yes=1 No=0 Are members of the airport board also members of the local Chamber of Commerce or Economic Development Corporation? Yes= 1 No=0 Do you have community event days sponsored by and conducted at the airport? Yes=1 No=0 Does the airport manager have routine communication with the Chamber of Commerce, the Economic Development Corporation, or the Convention and Visitors Bureau? Yes=1 No=0 Does your airport provide tours upon request? Yes=1 No=0 Total Score Total Score 3 or more = Strong Level of Community Engagement Total Score 2 or less = Weak Level of Community Engagement

168 Effects of Airline Industry Changes on Small- and Non-Hub Airports in airline attraction committees can help foster connections and trust with other members of the business community that may result in the open exchange of information such as business expansion plans or travel records that can be used to attract new air service. • Plan to Routinely Meet to Quantify Both Realized and Unrealized Demand for Air Service Generated by Changes in Economic Indicators and Demographic Factors One of the comments made by airline route planners was that airport managers and eco- nomic development officials are often not effective in quantifying existing and potential demand within their communities. By routinely meeting to discuss potential business attraction efforts or seasonal tourism projections, airport managers and community leaders can provide unique information to airline route planners about demand for new service in their communities. Infor- mation such as seasonality of demand, corporate travel group trends, links with other nearby communities, and new or emerging businesses or attractions that drive demand are critical to presenting a community’s demand for new air service effectively. • Use Indicators of Strong Economic Performance to Expand Existing Service In communities that have had strong economic performance over the past several years, an effective ASD strategy may be to use information on increased demand or ticket yield (air fare per mile) to expand existing service. For example, if a new employer to the region produces 20 passengers per day to an existing destination, the airport manager and local economic development officials may be able to work with the incumbent air carrier to add a flight or a larger aircraft type with first-class cabin options to drive additional yield. 9.4.2 Weak Local Economic Performance • Be Actively Involved in Local Economic Development Efforts to Attract New Businesses or Industries to a Region In communities with weak regional economic performance, a critical first step to building the foundation for future air service development success is for airport managers to foster a close working relationship with local economic development and tourism officials. In many commu- nities, airport managers are often part of the local economic development team that speaks with businesses looking to relocate to the community. An effective method to ensure a close working relationship between airport and economic development officials is to “cross-pollinate” board members in existing organizations including the airport, the economic development office, the chamber of commerce, and the Convention and Tourism Bureau (CVB) to help in the integra- tion of organizational goals (including the development of air service) across the region. • Consider Airport Experience Branding or Tourism Investment Opportunities as Potential Strategies to Overcome Limited Economic Growth and Generate Demand for New Service Communities that have experienced weak economic performance can help generate demand for air service by working with community leaders to invest in tourism promotion and to pro- mote the flying experience from the airport compared to a larger hub airport. In communities with employment decreases such as Sonoma, airport officials have worked with the local CVB to invest in tourism promotion in other cities (e.g., Chicago) to develop in-bound demand for travel to Sonoma. Alternatively, communities such as Akron, OH, have focused on branding and promoting the ease of the travel experience compared to larger hub airports. 9.4.3 Strong Existing Air Service Profile • Focus on Optimizing Existing Carrier Service Rather than Pursuing Possible Com peting Routes

Strategies 169 Small- and non-hub airports that have achieved a diverse air service profile including multiple legacy-carrier routes to network hubs and LCC service to O&D markets should develop ASD plans that focus on retaining existing service while looking to expand the number of flights or increase aircraft size with existing carriers. If the demand in a market increases due to seasonality or a new employer moving into a region, airport and community leaders are often able to use their relation- ships with incumbent carriers to quickly add new flights or move to a larger aircraft to accommo- date the increase in demand rather than trying to attract a new carrier to the airport. In some cases, airports that look to expand service by incentivizing new carriers whose routes may compete with existing carriers run the risk of losing service by incumbent carriers who may not want to compete with another air carrier on routes from smaller communities to their hub airports. • Target New Service that Complements Existing Service and Offers Maximum Connectivity for Travelers Airport managers at small- and non-hub airports with strong air service profiles may still want to pursue new service to meet untapped demand that cannot be met by existing carriers. In these cases, airport and community leaders should consider not only the destination with the most demand, but also the ability to reach other destinations via connecting service that a new route would provide to travelers. Metrics such as the QSI estimates (discussed in Chapter 8) can help airport managers identify destinations with the greatest connectivity to domestic and interna- tional markets. For example, if an airport has current service to a legacy-carrier network hub that feeds connections to the East Coast and Europe, it may be prudent to consider attracting a carrier whose hub connections are stronger to the west coast and Asia, even if that destination does not have the most local demand. 9.4.4 Weak Existing Air Service Profile • Target Carriers Whose Business Model Fits with the Community’s Needs Managers at small- and non-hub airports that have a weak existing air service profile often face significant internal financial pressure as well as external pressure from local elected officials and citizens to pursue new flights, regardless of the new carrier’s connectivity to other destina- tions. A key lesson from the most successful small- and non-hub airports over the past 10 years has been that managers and community leaders analyzed potential carriers to find those carri- ers with business models and destination profiles that matched the demand of the local com- munity. Examples of factors that communities may examine in advance of pursing new flights include frequency of service, connection bank times at hub airports, aircraft models that fit with airport noise or runway limitations, and the type of incentives a carrier finds effective based on its financial profile. • Educate the Public on the Macro and Micro-level Causes of the Community’s Weak Air Service Profile While Also Working to Gain Support for Future ASD Efforts A difficulty faced by many airport officials at airports with weak air service profiles is that they must continue to try to garner support from businesses that will often have their employees drive to other airports for their travel needs and then criticize the local airport for a lack of flight options. In these cases, airport officials must work to educate the community on the importance of business and community support for new service in today’s competitive ASD environment, with an emphasis on the benefits of flying locally and on larger airline industry trends that will affect the community’s ability to attract service. Airport officials should consider investing in studies and economic analyses that show the value to business and community leaders of flying from the local airport versus driving to a nearby airport. Additionally, airport and local eco- nomic development officials must educate the community through meetings with community

170 Effects of Airline Industry Changes on Small- and Non-Hub Airports groups, public forums, and media appearances on airline industry trends such as consolidation and fleet realignments that ultimately affect the success of the community in gaining new service. Such a program will enable the airport and community to set realistic expectations for service gains while allowing airport officials to focus on meeting with air carriers rather than defending their actions to the media and community. 9.4.5 Strong Recent Changes in Air Service Performance • Work Diligently to Market and Support New Flights to Ensure Their Sustainability In the survey of airline route planners, many noted that the “hard work” of air service devel- opment is sustaining service once it has begun. Many communities and airport officials often expend so much time and effort persuading a carrier to announce new service that these com- munities and officials have little time to spend on developing an effective marketing or public relations plan to generate community awareness and support for the new service. Successful marketing campaigns for new air service can include traditional advertising (e.g., television, radio, and newspaper), social media advertising, and events that draw members of the com- munity to the airport (e.g., 5K races and aircraft/airline tours). Communities may also have to market new air service regionally or internationally depending on the location of nearby alterna- tive airports or the level of in-bound traffic resulting from tourism. • Plan to Meet Periodically With Airline Route Planners to Outline Multi-Year Strategic Plan for the Community and How Service Will Be Sustained Airports and communities that have had recent successes must continue to communicate and build relationships with airline route planners and executives once they have agreed to start new service. A key piece of this communication is a multi-year strategic plan that describes the community’s plan for economic development and business attraction, tourism development, marketing and promotion of the new service, and how airport leaders will stay engaged with the community. Such information helps reassure airline route planners of the sustainability of newly initiated service. Presenting this information to airline route planners can result in opportunities for new air service if the community demonstrates significant market demand and a commit- ment to support the new air carrier. 9.4.6 Weak Recent Changes in Air Service Performance • Work With Local Businesses and Community Leaders to Generate Support for Existing Air Service, However Limited It May Be Many small- and non-hub airports with limited existing air service face the difficult task of trying to generate business and community support for flights that often are at inconvenient hours, on small regional aircraft, are unreliable and often the first flights cancelled by air car- riers during periods of irregular operations, and fly to large-hub airports rather than O&D markets. However, the most likely option for many small- and non-hub airports to expand service is with incumbent carriers. Therefore, showing that the community can support the limited service it has is critical to pursuing additional service. Airport managers can gener- ate support for existing service by working with local businesses develop a “check us first” campaign where major companies in a region will check the local airport before driving to a nearby airport. Additionally, airports can develop a total cost of travel application on their websites that they share with businesses to show that, in some cases, flying through the local airport may be more economical. Finally, airport managers must make the case to local elected officials that they should try whenever possible to fly from the local airport as a show of sup- port for existing service.

Strategies 171 • Pursue Alternative Modes of Transportation, Including Passenger Bus or Rail Service, to Supplement Existing Air Service Airports with limited existing flight options should pursue alternative modes of transporta- tion including airport bus service and train service to supplement their existing service. Many small- and non-hub airports are within a 2- to 3-hour drive of a major network hub. Often, these airports experience unreliable airline connections to major hubs because these flights are the first flights cancelled by air carriers during compressed demand caused by poor weather at larger hub airports. Private bus service between the small- or non-hub and the larger hub can provide pas- sengers an important back-up option during times of irregular operations. Additionally, by work- ing with private bus services and air carriers to allow passengers to check-in at the local airport, passengers may get in the habit of checking the local airport for flights before looking to larger hub airports. Operating passenger bus service from the local airport also provides passengers with a tangible sense of how much time they are sacrificing by flying from a larger hub rather than the local airport. Finally, working to provide passenger bus service allows airport managers to collect tangible, reliable data on local market demand that can be used during meetings with air carriers. 9.4.7 Strong Airline and Community Incentive Programs • Develop Flexible Incentive Programs and Remain in Frequent Contact with Air Carriers to Determine if the Program is Meeting the Needs of the Carriers Airports and communities with incentive programs being used to subsidize new service should meet frequently with airline route planners to monitor the profitability and performance of new routes and adjust incentive structures if the new flight is not meeting performance metrics or if the carrier shifts its business model. Examples of flexible incentive programs could include shifting community travel bank funds into minimum revenue guarantees, shifting unneeded minimum revenue guarantee funds into additional marketing for the new service, or providing innovative terminal rent, ground-handling, or landing fee waivers based on the success of the new service. Flexible incentive programs ensure that airport and community leaders can act to sustain the new service while maximizing the value of private and public money. 9.4.8 Weak Airline and Community Incentive Programs • Conduct a Realistic Assessment of Whether an Investment of Public and Private Money in an Incentive Program is Feasible Given Existing Financial Constraints and the Likelihood of Sustaining New Service A critical component of developing and implementing an airline incentive program is to assess the likelihood that the investment of public and private money to attract or retain new air service will be successful, given macro-level factors in the airline industry, existing financial constraints in the local community, and the level of community support and demand for new air service. This assessment is critical because it allows the community to determine how willing it is to invest in new air service. Additionally, such an assessment allows airport and community leaders to identify key businesses and elected officials who can act as champions for ASD efforts. • Match the Incentive Program Being Developed to the Business Model of the Air Carrier Being Targeted Most airline route planners say that general incentive programs do not have a significant effect on the decision to start new air service in a community. However, they also note that incentive programs that consider the business model of the air carrier are much more likely to influence the decision. If a particular carrier has a focus on reducing per-turn costs and cost per enplaned passenger (CPE), then a community-driven incentive program focusing on ticket purchases

172 Effects of Airline Industry Changes on Small- and Non-Hub Airports through a travel bank is not likely to be effective. If a community is simultaneously trying to attract two airlines, one with mainline and one with RJ service, its incentive program must be flexible enough to allow for minimum revenue guarantee funds to be shifted to the mainline service while shifting more on-airport fee waivers to the RJ flight. Finally, to understand the underlying business model of the targeted air carrier, airport and community leaders should meet frequently and routinely with airline route planners at events such as Jumpstart, the Sixel Airports Conference, and the AAAE National Air Service Conference. • Focus on Reducing Short-Term Risk and Costs to the Air Carrier While Protecting the Interests of the Community When a carrier begins new service in a community, the carrier confronts several risks includ- ing a lack of enplanements due to a lack of marketing, the costs of opening a new station at the airport, and the cost of moving or hiring new employees for baggage, ticketing, and ramp opera- tions. Incentives such as ticket banks or minimum revenue guarantees are designed to offset these costs and risks over a short time. However, these incentives can present significant financial risk to local businesses and governments. Airport and community leaders must work with air carriers to design incentive programs that protect the interests of the air carrier and the local community. In the case of Panama City, both Southwest and St. Joe Company could exit the agreement if the service was so unsuccessful that either party incurred a significant financial burden. Also, the inclusion of a provision for profit sharing between Southwest and St. Joe Company if a revenue guarantee payment was made protected St. Joe Company from losing millions of dollars in one or two quarters and having no way of recouping payments when the route was profitable. 9.4.9 Strong Level of Community Engagement • Continue to Educate and Reach Out to Local Businesses and Civic Groups about the Performance of the Airport and Airline Industry At airports where there is a strong level of community engagement between the airport and local economic development leaders, there is a tendency to reduce the frequency of established education sessions and outreach efforts after a community gains new air service. Similarly, in communities that have not had success in ASD efforts but have strong community engagement, there may be a belief among some members of the ASD group that community outreach and education are ineffective. However, continual and frequent education and outreach to the com- munity is a key component of successful ASD efforts. For communities with new service, out- reach allows airport and economic development officials to communicate industrywide or local trends that may affect the success of the service while allowing for the establishment of new ASD efforts due to local changes such as a new business opening. In communities still working for new air service, outreach and education forums enhance coordination of efforts and resources that can be used to bolster ASD efforts or suggest new approaches. • Formalize Governance Arrangements to Allow for Nimble Responses to Future ASD Opportunities In many communities with strong community engagement programs, much of the work between airport managers and local economic development leaders occurs ad hoc and may overlap or compete with other efforts ongoing in the community. Developing a formalized gov- ernance structure such as an official airline attraction committee allows for shared responsibil- ity across several organizations including the airport, the CVB, economic development office, chamber of commerce, and local businesses while fostering a sense of trust among participants. Formalizing previously ad hoc processes helps ensure a much quicker response to new ASD opportunities. Finally, a formal airline attraction committee can work on simultaneous efforts such as retaining an incumbent carrier while trying to add new non-competing service.

Strategies 173 9.4.10 Weak Level of Community Engagement • Establish Education and Outreach Programs that Communicate the Value of the Airport to the Community Airport managers in communities with weak engagement face the difficult task of trying to remind the community that their airport has value to the region, even though many citizens may never have used or been to the airport. A way to overcome the lack of awareness of the air- port more generally is to hold frequent, regular education and outreach meetings with key civic groups (e.g., the Lions Club or the Rotary). By educating the community on macro-level indus- try trends and local factors that influence air service, airport managers can foster understanding of the underlying market demand necessary to expand flights and how members of the com- munity can help establish the conditions necessary to expand service. Finally, airport managers can use these sessions to identify citizen perceptions of the airport and the service offered and illustrate the value of the airport to the community through quantitative figures (i.e., a business case) or through special events at the airport. • Develop Close Working Relationships with Key Community and Economic Leaders One of the most important lessons to emerge from the case studies and focus groups is that to sustain ASD efforts, local officials must remain engaged in attraction and retention efforts. The most successful example of a sustained ASD campaign was in Fargo (FAR). The close working relationship between the airport, the Greater Fargo-Moorhead Economic Development Corpora- tion, the Chamber of Commerce of Fargo-Moorhead and West Fargo, and the Fargo-Moorhead Convention and Visitors Bureau has been the key to FAR’s ability to use the region’s economic growth to attract new air service to Fargo. By partnering with these community groups, the airport has overcome traditional limitations on ASD such as the FAA’s AIP grant assurances by developing a flexible airline attraction program that provides incentives to carriers. By being in constant communication with these organizations, the airport has access to real-time informa- tion on the needs of the business community and can address any concerns through an organi- zation’s regular meetings.