Idea taking off

Local aviation authority adopts incentives program aimed at helping new carriers, services get started

By Allyson Bird
The Post and Courier
Tuesday, October 27, 2009



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Still reeling from the blow of AirTran Airways' decision to pull out of the area, officials at Charleston International Airport have created the first-ever incentives to lure new carriers and services.

The incentives target startup costs that might mean the difference between new business and missed opportunity. The Charleston County Aviation Authority, in adopting the incentives program, gave airports Director Sue Stevens and authority Chairman David Jennings permission to court carriers with those perks at their disposal.

The incentives include temporarily waiving landing fees, which run about $3,500 per year for a regional jet with one flight a day. They also allow for as much as $150,000 in startup costs for new carriers.

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Delta passengers wait for luggage Monday after arriving at the Charleston International Airport. The Charleston County Aviation Authority has adopted an incentives program to help draw new business to the airport.

Those costs include computer equipment, kiosks and terminal improvements -- work that requires time and money from an airline but benefits the airport overall, Stevens said.

"What we are doing is investing in our facility," she said Monday.

Also, she added, cutting out those up-front costs gives the new flight a chance to catch on locally without as much on the line.

The incentives program also provides for as much as $10,000 in marketing assistance, money that could be used for anything from advertisements for the new service in an in-flight magazine or for radio spots on the Charleston airwaves.

"We're not just writing them a check," Stevens said. "We're not trying to reimburse them for funds they were going to spend anyway. We want them to do more with what they have in the way of advertising dollars."

Charleston International helped American Airlines market its new nonstop service to Miami, which starts Nov. 19. Otherwise, the idea of incentives is largely new and, Stevens said, necessary as airports become increasingly competitive.

Since AirTran announced its departure, flights to New York on major carriers soared from a little more than $200 round-trip without a required overnight stay to nearly $800, according to John Powers, owner of North Charleston-based travel agency Travel Management Group. Flights to Atlanta doubled, he said.

Related story

Delta to cut daily flight here, published 10/27/09

"The airlines are in the driver's seat," Powers said. "They've cut their capacity, and they're reasonably comfortable with where they are."

Gary Edwards, a consultant who works with the aviation authority, said the incentives program comes as a proactive measure, not because of any potential customer's request.

"I would like to see a bigger number, but it's certainly a great step in the right direction," he said.

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A Charleston International Airport visitor walks past the Air Tran counter Monday.

Before voting on the program, at least one aviation authority board member voiced concern about adopting something that effectively takes the board out of negotiations with potential customers.

"It opens us up to criticism," said Larry Richter, an attorney.

Jennings said approving the program cements the board's involvement. Board member Teddie Pryor, who also is chairman of Charleston County Council, said later that Jennings and Stevens need that authority to move quickly.

"You may lose a deal or you may lose an airline coming in," Pryor said.

The program also protects the authority from legal pitfalls by spelling out the incentives in writing, Stevens said. Federal regulations require that the authority treat airlines equally, and that means one carrier's cost-savings cannot translate to another facing steeper charges.

Reach Allyson Bird at 937-5594 or abird@postandcourier.com.

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