Tuesday, October 23, 2012

Lehigh Valley International (KABE), Allentown, Pennsylvania: Airport passenger volume plunges 23 percent in September

Passenger volume plunged again in September at Lehigh Valley International Airport, the seventh straight drop from year-ago levels.
 

The trend comes as airport management scramble to find new business, rein in costs, and pay a $16 million legal judgment by 2015.

The regional airport drew 48,402 passengers in September, down 22.7 percent from 62,592 travelers in September 2011, according to figures release today by the Lehigh-Northampton Airport Authority.

Traffic has fallen every month since March compared with year-ago levels. In each of the past four months, volume has declined more than 20 percent. Year to date, traffic is down 13.5 percent from the 2011 pace.

LNAA Executive Director Charles Everett said rising fuel costs is a big reason as it forces airlines to consolidate. Fifty-seat regional jets common at LVIA lag in fuel efficiency, he said, and are being scaled back.

“All carriers are looking at cutting back when prices are this high,” Everett said. “We, like other small airports, are experiencing" declines.

LVIA Business Development Director Susan Kittle said major airlines are raising fares to offset higher fuel costs and are settling for fewer seats as a result.

US Airways and United posted drops of more than 20 percent in September. Plus United plans to end service to Washington D.C. in February.

Also driving volume down is the departure of AirTran Airways, now part of Southwest Airlines, which ended LVIA flights in August. Southwest pulled the service out as it integrated AirTran into its airline system.

Everett said the authority is exploring options to invite new business, including installing an inspection station for customs clearance at a cost of about $5 million.

That would allow for international flights, such as to Caribbean spots. LVIA has provided flights to Canada before but that was through a pre-approved clearance process.

“We’re doing serious things to try to improve passenger levels at this airport,” board member Bert Daday said of a possible inspections station. “This is one of the prime options we have in increasing passenger levels.”

Hanover Township, Lehigh County-based LVIA has for years sought to lure local travelers who often travel extra distance to Newark or Philadelphia in pursuit of more offerings or lower fares.

Airport officials said they are negotiating with new airlines and lobbying existing airlines to add service.

“I don’t know a successful business that has cost cut their way to the promised land,” LNAA chairman Tony Iannelli said. “Income generation will get us to the promised land and we can not let the marketplace be an excuse for failure.”

Cost pressures add to the problem. Everett said the authority is planning reductions in the coming years, possibly staff cuts. He did not specify what positions could be reduced, saying plans are not final. LNAA employs 106 full-time employees.

The authority owes $16 million to developers to settle litigation concerning its condemnation of land surrounding LVIA, once targeted for homes, in the 1990s.

The court-ordered judgment is payable in annual installments ending in December 2015. The first $2 million of the mostly backloaded agreement is due Dec. 1.

To help raise money, LNAA has hired the Rockefeller Group real estate company to explore sale of authority-owned land excluding Queen City Airport in Allentown. That includes Braden Airpark in Forks Township plus some 600 acres of undeveloped land outside LVIA.

Everett said LNAA expects a conceptual plan from The Rockefeller Group in November.


Story and comments:  http://www.lehighvalleylive.com

http://flylvia.com/index.html

http://www.airnav.com/airport/KABE

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