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Air passengers on the rise for new service here
Lancaster New Era
Jun 24, 2009 10:34 EST
Lancaster
By TIM MEKEEL, Staff Writer

Three months after the first Cape Air flight took off from Lancaster Airport, the airline's passenger counts here keep gaining altitude.

"It's definitely building every month. Obviously, that's what we want to see — an upward trend," said airport official Joyce Opp.

"In some cities (where Cape Air has initiated service), it's taken a year to get to where we are already," she added.

Cape Air's service to and from Baltimore-Washington International has carried more than 2,100 passengers to date.

Opp, finance and marketing director for the Lancaster Airport Authority, said Tuesday that the popularity of the service is rooted in several factors.

"We have a great price and a great schedule, and we connect you to all the major airlines, not just one (as was the case with predecessor USAirways Express, which flew to Pittsburgh).

"We think it's the winning combination," said Opp.

Cape Air also is delighted with the public's response to the new service, which offers five roundtrips a day, seven days a week, said spokeswoman Michelle Haynes.

"We're thrilled with the Lancaster numbers," said Haynes, noting that the airline and the authority have had to "re-educate" the public about the availability and advantages of local commercial service.

Lancaster Airport had lost its commercial service in September 2007, when a federal subsidy for USAirways Express to provide service here expired.

Airport officials and legislators, working relentlessly for months, eventually got the subsidy restored.

That, in turn, attracted Cape Air. Cape Air started flying to and from here March 24, ending an 18-month hiatus in local commercial service.

Cape Air carried 96 passengers (calculated as all arrivals plus all departures) here during the final eight days in March. In April, Cape Air had 520 local passengers. In May, it had 760.

So far in June, through Monday, Cape Air had 729. If current passenger counts are maintained for the rest of the month, the June tally will exceed May's total by several hundred.

Opp estimated that 65 percent of Cape Air passengers here are business travelers, especially from Manheim Auto Auction, Armstrong World Industries and Wilbur Chocolate owner Cargill.

Another substantial portion of the travelers on the nine-passenger Cape Air Cessna 402 twin-engine planes are senior citizens, she said.

Haynes and Opp said the new service has been well received because it's affordable, dependable and convenient.

Flights cost $50 one way and parking at Lancaster Airport is free, Opp noted. All of Cape Air's flights here have been on time. Flights are available throughout the day.

Passengers are "overwhelmingly excited," said Opp. "They're so happy that they don't have to drive down there and don't have to pay to park. ...

"With five flights a day, they can get out at a reasonable time and can get back at a reasonable time. If they miss a flight, they don't have to worry (because service is so frequent)," she added.

Although the public response to the new service has been strong, Haynes thinks ticket sales can improve.

Even with the steady increase in ticket sales, Cape Air still is filling only 32 percent of the seats on its Lancaster flights so far this month, said Opp. The airline wants to be filling 55 percent by next March.

"We believe there's room for growth and we're going after it," said Haynes, adding that Cape Air is planning several marketing initiatives this summer.

The challenge, Haynes said, is to change people's travel habits.

Lancaster Airport hasn't offered flights to BWI since 1992, according to New Era files, when USAirways ended a three-year run of service.

During the subsequent years, "people got in the habit of driving to BWI. We need to make people aware that there's now a great alternative," she said.

Cape Air someday might offer other alternatives as well, Opp and Haynes indicated, if the passenger counts continue to climb.

"Hopefully, by the end of the year, there will be enough passengers to justify adding flights and/or destinations," said Opp. "It's all up to the public. If they use it, the service will increase."

Staff writer Tim Mekeel can be reached at tmekeel@LNPnews.com or 481-6030.


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"Opp estimated that 65 percent of Cape Air passengers here are business travelers, especially from Manheim Auto Auction, Armstrong World Industries and Wilbur Chocolate owner Cargill."

And when 2 of the 3 aren't here in 5 years... then what?
gp80mac
Your tax dollars at work. At least the subsidy calculation is fairly transparent. It's paid to Hyannis Air Service, Inc., DBA Cape Air. For a full year, the award was made at an estimated amount of $1,372,474. This is the ceiling. The actual amount will be less because the service didn't start until around April 9. The contract period ends September 30.

Per departure, the subsidy is calculated at $518 (there are 5 a day), or per passenger, $160. These are the average figures and assumes an average of 3.2 passengers per departure.

The caluculation is based on Cape Air running 5 round trips a day, completing 97% of the trips, with 3.2 passenger per departure, or a load factor of 36%, and an average fare of $50. The airline gets to keep the fare. If every seat is filled, the max revenue would $450, with the subsidy making up the rest to the $518 figure, so every flight has some subsidy attached to it.

The formula builds in 5% return for the carrier. Of course, some of the money paid as a subsidy to Cape Air comes back to Lancaster Airport for landing fees, fuel, de-icing fluid, what have you.

Lancaster's subsidy is one of 152 such subsidies for what is called "essential air service." [107 in the Lower 48 and 42 in Alaska]. Its subsidy is part of the Hagerstown, Maryland to BWI subsidy award. You can be assured, there are communites all across America that would leap for joy if they could get what Lancaster has gotten in terms of air service.
reddnup
QUOTE (reddnup @ Jun 25 2009, 03:32 PM)
Your tax dollars at work. At least the subsidy calculation is fairly transparent. It's paid to Hyannis Air Service, Inc., DBA Cape Air. For a full year, the award was made at an estimated amount of $1,372,474. This is the ceiling. The actual amount will be less because the service didn't start until around April 9. The contract period ends September 30.

Per departure, the subsidy is calculated at $518 (there are 5 a day), or per passenger, $160. These are the average figures and assumes an average of 3.2 passengers per departure.

The caluculation is based on Cape Air running 5 round trips a day, completing 97% of the trips, with 3.2 passenger per departure, or a load factor of 36%, and an average fare of $50. The airline gets to keep the fare. If every seat is filled, the max revenue would $450, with the subsidy making up the rest to the $518 figure, so every flight has some subsidy attached to it.

The formula builds in 5% return for the carrier. Of course, some of the money paid as a subsidy to Cape Air comes back to Lancaster Airport for landing fees, fuel, de-icing fluid, what have you.

Lancaster's subsidy is one of 152 such subsidies for what is called "essential air service." [107 in the Lower 48 and 42 in Alaska]. Its subsidy is part of the Hagerstown, Maryland to BWI subsidy award. You can be assured, there are communites all across America that would leap for joy if they could get what Lancaster has gotten in terms of air service.

Interesting.

I can see subsidies for air travel in the remote areas of Alaska and maybe some remote locations in the lower 48. I can't see a subsidy when there are three major air terminals with 75 miles of Lancaster. It's a complete waste of money.

Given the current passenger levels, what is the subsidy for each one-way passenger trip to Baltimore?

QUOTE (powderpig @ Jun 25 2009, 12:01 PM)
What a bunch of sour grapes you all are! Use the service it's great! Sounds like you all need a vacation anyway!

I did use local service before it was suspended, both in Lancaster and Reading. The problem is that it's not economically viable without taxpayer assistance. So why should I have to pay for you to fly out of Lancaster when you can easily drive to Harrisburg, Philadelphia or Baltimore?
Pericles
To be fair concerning the subsidization of Lancaster air service, its economic viability, or the lack thereof, most of us would be amazed to find out what it really costs to provide us the ability to drive, take a train, use a subway, ride on a bus, what have you, to go anyplace. Almost nothing related to transportation use or transportation services is what we like to call "economically viable." We, direct users, don't pay the true costs for their use--building them, maintaining them, and upgrading them. They require massive federal subsidies, which are funded by taxpayers across the country, many of whom will never use or get any direct benefit from them.

If each of us had pay, directly, for each trip we took using our cars, such as driving to Harrisburg, BWI, or Philly, or in any other form of transportation to get to air service, we couldn't afford it. Some would say, so be it; others, that's something for which tax dollars have to be used.
reddnup
QUOTE (reddnup @ Jun 25 2009, 02:32 PM)
Your tax dollars at work. At least the subsidy calculation is fairly transparent. It's paid to Hyannis Air Service, Inc., DBA Cape Air. For a full year, the award was made at an estimated amount of $1,372,474. This is the ceiling. The actual amount will be less because the service didn't start until around April 9. The contract period ends September 30.

Per departure, the subsidy is calculated at $518 (there are 5 a day), or per passenger, $160. These are the average figures and assumes an average of 3.2 passengers per departure.

The caluculation is based on Cape Air running 5 round trips a day, completing 97% of the trips, with 3.2 passenger per departure, or a load factor of 36%, and an average fare of $50. The airline gets to keep the fare. If every seat is filled, the max revenue would $450, with the subsidy making up the rest to the $518 figure, so every flight has some subsidy attached to it.

The formula builds in 5% return for the carrier. Of course, some of the money paid as a subsidy to Cape Air comes back to Lancaster Airport for landing fees, fuel, de-icing fluid, what have you.

Lancaster's subsidy is one of 152 such subsidies for what is called "essential air service." [107 in the Lower 48 and 42 in Alaska]. Its subsidy is part of the Hagerstown, Maryland to BWI subsidy award. You can be assured, there are communites all across America that would leap for joy if they could get what Lancaster has gotten in terms of air service.


First of all reddnup stop doing all that math, It hurts liberals brains.
$160 per person subsidy with 3.2 people per flight, Well that would make one awesome limo ride with complimantary adult beverages. Does anyone see what kind of joke this is?
Please will some polititcian subsidize my business this way!

Try to find online anything about the airports budget, expenses, employees, NOTHING.
A black hole of taxpayers money. Shut it down and drive to Harrisburg.

It's an obamantion now. Get used to it.
Right of Smart
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