Steve Robinson

Small US Airport’s Future Looks Dim

Travelers living close to small airports and looking to purchase cheap airplane tickets or cheap vacation packages will either have to pay increasingly higher prices or drive to a larger airport offering lower ticket prices.

Industry experts acknowledge that smaller airports frequently experience higher price increases than larger airports.  Airlines usually fly turboprops and 50 seat jets on routes that connect smaller airports to large hubs, where the increased cost of fuel and other expenses is spread among fewer passengers. 

Most small airports do not have enough customers to fill larger planes several times a day and thus have problems attracting low fare airlines who usually are drawn to markets with higher volume.  The problem gets even worse as local citizens elect to drive to larger airports offering lower prices or simply choose not to fly because of higher prices.

Obama’s administration recently proposed to cut back the subsidies for the federal Essential Air Service program which pays $200 million annually to subsidize flights to 154 rural markets.  Congress to this point has proven reluctant to cut back on its support to small airports.

To try to retain airline service, airports have started offering incentives to airlines to add or maintain service including reducing landing fees and terminal rents.

Ultimately the decision as to which smaller airports will close will be market driven.  Those airports not able to generate enough traffic will likely be shut down.

Article Tags: Smaller Airports

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