ECONOMIC IMPACT ANALYSIS
We approach the economic impact an airport has on its community and region differently; from a pragmatic viewpoint. We want to understand, specifically, how the money generated by an airport flows through a regional economy. We work to break down specific impact from visitors generated by air service and to understand what would happen to an economy if air service disappeared overnight. These stark realities help garner community support and aid people in understanding just how important that runway really is.
We’re also able to project forward economic impact. We can pinpoint future impacts of a new airline route – a specific new service. We can forecast new hotel nights, new tourism revenue, and new business activity. We can also illustrate how new air service can grow a tax base – a key consideration in garnering air service support from surrounding communities.
INCENTIVE POLICY DEVELOPMENT
The FAA places all kinds of rules and regulations on what airports can and cannot do when incentivizing new service. At the same time, airlines are often very aggressive in their incentive asks, looking to mitigate the risk of entering new markets. We are experts in helping walk the fine line between FAA regulations and incentives that are aggressive enough to get airlines to take notice.
We develop our own forecasts for each new targeted route, determining what new airport revenue will be generated with each service. We can then determine what an airport can afford to offer airlines for new service. Finally, we analyze a proposed plan against FAA regulations, ensuring its legality. We can also recommend other funding avenues within a community to develop more robust incentive programs.
GOVERNANCE STUDIES
Many airports feel hindered in their operations, airline recruitment, and marketing efforts by their ownership and governance. Our consultants have spent years studying airport governance structures all over North America. We have developed a common list, by state and province, of structures that work, and those that don’t.
In some cases, we propose simple changes to make an airport run more like a business; enabling them to be more responsive to stakeholders. In other cases, we deeply analyze the cost and political environment for wholesale governance changes. In the end, we develop straightforward recommendations on which an airport, and its governing body, can take immediate action.
CORPORATE TRAVEL ASSESSMENT
Virtually all carriers covet the business traveler. An airport’s strongest asset is the business travel its community generates.
We work directly with the large companies, universities, and organizations in communities which generate significant air travel demand. We research their travel patterns by analyzing their direct airline bookings. We leverage this data for business buy-in and airline support. A corporate travel analysis can be the key piece of data in getting a company’s support for air service, and subsequently, launching a new route.
FINANCIAL SUPPORT PACKAGE
At Volaire, we work hard to help our clients understand the risk an airline faces in launching new service. We work to educate the businesses in our communities on how they can take air service development into their own hands.
Our team has worked on multiple projects to secure business funding for new service. We’re talking about actual cash in the bank, backing up new service, most commonly through minimum revenue guarantee programs. Airports can’t go it alone. We’re experts in getting businesses to understand the economic value of expanded air service and in getting actual cash commitments recruit new air service.
SCASD GRANT SUPPORT
The members of Volaire’s air service development team have been writing Small Community Air Service Development (SCASD) Grants since the program’s inception. Our team is proud to have won more than $20 million in funding for airports in the last 15 years. The long-term success rate of projects we’ve worked on is excellent – with most becoming permanent fixtures in airline networks.
While funding for the SCASD Grant program has declined and the competition for funding has grown, we’ve developed creative ways to best position our airports to win. We believe in clear, concise arguments. We believe in developing airline support before applying. We believe in strong community support to prove demand for the proposed new route exists.