Smaller airports are feeling the crunch as airlines continue to cut costs. The big carriers are consolidating services at larger airports and flying fewer planes in and out of smaller ones.
At Burlington Airport passenger numbers are higher than they were a decade ago, but they’ve declined nearly 18 percent since they peaked five years ago.
Burlington isn’t alone – and it’s faring better than many other airports of similar size.
The fees airlines like United, Jet Blue and Delta pay Burlington International Airport are based on a plane’s weight. For every thousand pounds of airplane that touches down, the airport receives $1.75 from that airline. It’s not nearly enough to pay what it costs the city owned airport to provide the services necessary to serve the airlines.
“The actual cost for that may be more like $5,” says Heather Kendrew, Director of Maintenance, Engineering and Environmental Compliance. “Because of the other revenue sources that we have around the airport, we’re able to lower what we charge the airlines themselves for the actual operation, to keep that artificially low.”
Essentially the airport subsidizes the airlines to the tune of about $6 million every year. Director of Aviation Gene Richards says if airlines were charged what it actually costs to serve them, they’d simply go somewhere else.
“At the end of the day, if your airport is expensive to fly into and out of, you’re going to lose that airline,” Richards explains. Richards says staying competitive with other airports to keep airlines serving Burlington is a balancing act between cutting costs and increasing revenue.
The airport is taking in more money by renegotiating leases with business that rent airport space. It’s also finding new tenants. Additional money comes from federal grants, but the biggest stream of revenue is from parking. 40% of airport revenue comes from parking fees.
Area travelers make up the largest group of people who use the airport, but about 30% of those who fly from Burlington are Canadian.
That’s where the airport sees the potential for growth, so it’s poised to launch a marketing campaign in Sherbrooke, Quebec and the Eastern Townships. “The air carriers are really tightening their belts and we need those passengers to come down and fill these planes,” says marketing coordinator Ryan Betcher.
Betcher was instrumental in securing a Department of Transportation grant that will subsidize Delta Airlines’ new non-stop service to Atlanta which begins this week.
Newly appointed director Gene Richards has earned high marks for his enthusiasm and the changes he made as interim director. Some work was basic maintenance and repairs, other projects are designed to make the airport more pleasing and comfortable for travelers.
“I kind of consider myself like a Labrador and I’m kind of running after the stick,” Richards says. “ I find it very satisfying to return, retrieve and bring back something that people want.”
Despite the downward trend in passengers at smaller airports, Richards is hopeful controlling costs, generating new revenue and smart marketing will enable Burlington International to return to the higher numbers of the past .
