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HomeMy WebLinkAboutAirport.Minutes.10-12-2004AIRPORT BOARD MINUTES October /2, 2004 Cape Aviation Members Present: Ery Amzen, Robin Cole, William Dunn, Mark Seesing, Bo Shantz Members Absent: Fred Eggley, Gerry Keene, Fred Schmucker Others Present: Bruce Loy, Airport Manager, Kristi Thurman, Project Assistant I. MINUTES OF PREVIOUS MEETING The meeting was called to order at 5:15 PM. Mr. Shantz made a motion to approve the minutes of the September 14, 2004 meeting and Mr. Seesing seconded the motion. The motion passed by unanimous vote. II. OLD BUSINESS A. American Connection Fourth Round Trip — Mrs. Thurman gave a presentation on the Small Community Air Services Development Grant and the impact of adding a fourth round trip. Mrs. Thurman explained to the Board that the reason why boardings have been continuing to decrease is because connection times from Cape Girardeau to St. Louis need to be improved. In November of 2003 American Airlines decreased their capacity out of St. Louis by nearly 50%. The results of the downsizing had a significant impact on boardings from CGI. As flights were reduced out of St. Louis — connection times were increased significantly — as much as 3 '/� to 4 -hour layover times. By adding a fourth round trip, Mrs. Thurman demonstrated that there would be more options, greater flexibility and increased capacity in the boardings from CGI. Historical information has shown us that anytime capacity has been increased there has been a favorable increase in boardings as well. In 1998, CGI was increased to three -round trips per day and boardings reacted favorably by increasing by 155%. Mrs. Thurman showed excerpts from a leakage analysis done in September of 2000, which indicates that the market is here for Cape Girardeau. Cape Girardeau serves roughly 330,000 area residents by providing commercial air service. CGI retains approximately 5% of its passenger base with '/. of the local traffic going to St. Louis and another 20% going to Memphis. It is estimated that the Cape Girardeau area books between 27,500 and 30,000 annual outbound passengers, which would result in a range of 55,000 — 50,000 annual enplanements for the Airport. The proposed additional flight would depart Cape Girardeau at 2:10 PM and arrive in St. Louis around 2:55 PM. The additional flight would also depart St. Louis at 1:45 PM and arrive in Cape Girardeau at 2:30 PM. By adding the additional flight — we would be able to catch the "push" at the St. Louis hub for the flights coming in between 12:00 PM and 2:00 PM. As it is now, passengers arriving on that "push" are waiting until 3:30 PM to travel to Cape Girardeau on their returning flight, as much as a four- hour layover. These layovers would be decreased from 'F. hour to 2 hours maximum. Mrs. Thurman then showed many examples of actual flights, costs and layover times and how they would be impacted with the additional flight. The presentation then focused on the Economic Development, Convenience and Growth and Stability that having an airline October I2, 2004 Page I provides the community. The presentation concluded with a fare comparison showing ",. the price differences between flying out of Cape Girardeau (CGI), St. Louis (STL) and Memphis (MEM). When factors were considered in at .365 for mileage and $11.00 for Parking, Cape Girardeau came out as the lowest price for all four destinations — Dallas/Ft. Worth, Chicago, Orlando and Ft. Lauderdale. Following the presentation a lengthy discussion was held. It was requested that the formula for the revenue guarantee from Corporate Airlines be presented to the Board for consideration. Mr. Loy agreed to research the amounts, bring Mr. Doug Caldwell, President of Corporate Airlines, in to speak to the board and do further research into the Essential Air Services Development Program. As the first item required so much discussion, the meeting concluded without going through the rest of the Agenda items. The meeting was adjourned at 7:10 p.m. Minutes prepafed by Krisli Thurman, Project Assistant Minutes ApoIoved By: 7 Willi2m Gerry Keeirb BY - Chairman Airport A&`isory Board October 12, 2004 Page 2