Saturday, October 24, 2015

Opinion: It's time to plot new future for St. Cloud Regional Airport (KSTC), Minnesota




Brian Myres and Patti Gartland, Greater St. Cloud Development Corp. 

Although the Chicago service model was not sustainable, traditional commercial air service is just one model and one option

STORY HIGHLIGHTS:
  • In the past 15 years, $71 million in tax money has been invested in improvements at the airport
  • While we ponder our dilemma, the aviation industry is forging ahead in reinventing itself
At this time last year, business and community interests were waging an aggressive campaign to grow use of the twice-daily air service from St. Cloud to Chicago that commenced in May in attempts to preserve it well into the future.

A federal grant and substantial funding from the local business community was attained to help offset operating losses customary with the start of new air service routes. Despite a promising start, the ridership needed to reach financial sustainability lagged.

In early fall, Greater St. Cloud Development Corp. and city representatives traveled to Utah to meet with SkyWest Airlines officials to discuss options and strategies for growing ridership. Ultimately, the news came on Christmas Eve that SkyWest was terminating service in early 2015. Ouch.

What we know

Utilization (ridership) grew month over month, then lagged. A multitude of headwinds (challenges) were encountered during the service.

Airline reliability was problematic, especially for business travelers. Changing consumer habits accustomed to traveling out of the Twin Cities airport takes a lot of time and patience. Seasoned travelers are very reluctant to transfer travel status from one airline to another. Weather and fire events at Chicago O’Hare added to reliability of service problems. Marketing scope by the airline and the region was undersized for the task at hand.

What we learned

Service reliability is vital to air travel, particularly for the business traveler. Financial and governance responsibility for the St. Cloud Regional Airport does not match the area it serves. While exclusively the responsibility of the city of St. Cloud, it serves and benefits the entire region.

A broader, deeper and more sustainable governance and funding structure is needed to more effectively grow utilization and realize the true economic development potential for our region.

The future

Although the Chicago service model was not sustainable, traditional commercial air service is just one model and one option.

In fact, since its launch in December 2012, the Allegiant service from St. Cloud to Mesa, Arizona, has been wildly successful and consistently enjoys strong utilization. Likewise, without the benefit of any advertising investment, Sun Country charters from St. Cloud to Laughlin, Nevada, consistently sell out.

Military aviation was successfully recruited to the St. Cloud airport campus in 2009 with the $37 million construction of the Minnesota National Guard Aviation Facility and the addition of 62 full-time state and federal jobs.

General aviation (think private aircraft) activity continues to grow. A recent feature in Forbes magazine is projecting private business aviation to grow to $15-$17 billion and become 14 percent of airline domestic market. It also references the current air taxi market (think Uber Air) has 2,000 aircraft, each doing about two trips per week per aircraft.

While we ponder our dilemma, the aviation industry is forging ahead in reinventing itself.

The St. Cloud Regional Airport is a significant asset in Central Minnesota. In the past 15 years alone, $71 million in local, state and federal tax money has been invested in improvements at the airport.

Air transport (passenger, freight, military) remains essential to economically vibrant regional centers by providing access to the global business community, attracting high-caliber talent, and in retaining and attracting national/multi-national and international businesses.

And, shovel ready sites at the adjacent Airport Business Park beckons aviation-related industrial development opportunities.

So, where do we go from here? We need a new game plan. We need a game plan that learns from the past and looks to the future. We need a game plan that capitalizes on what has and continues to succeed at STC and embraces the air service revolution that is underway.

To that end, the GSDC has and continues to facilitate efforts to secure funding to complete an air transport planning study to hire third party expertise to research, analyze and develop models and strategies to expand and capitalize on the highly under-utilized regional asset base of the airport.

It’s time to put the disappointment of the St. Cloud-to-Chicago air service experience behind us and figure out what the highest and best use of this regional asset really is – and then go for it!

This is the opinion of Brian Myres, Transportation Corps Chair of the Greater St. Cloud Development Corp., and Patti Gartland, GSDC president.

- Story and photo: http://www.sctimes.com/opinion

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