Columbus Metropolitan Airport Actively Recruiting New Airlines (Atlanta, Savannah: real estate, homes)

[Columbus1984]

Originally Posted by Fountain-of-youth

The mayor want the city to be apart of Atlanta's growth. I personally don't like the sound of that idea at all.

If we can piggyback some off of Atlanta’s growth I think that is a fantastic thing for Columbus. Economic growth from Columbus to Atlanta up the 85 corridor is a good thing.

[columbusboy8]

We should do whatever it takes to bring industry here, particularly manufacturing, and more futuristic industries, like robotics and artificial intelligence, and, yes, do even more for tourism---like getting the military families who come for graduations to "linger longer, and explore Amazing Columbus!" We should also seek out companies that want to relocate, like we did with NCR, for example. And most definitely go after any company that manufactures or distributes parts for the auto industry.

For better, or worse, depending on folks' points of view, growth between Columbus and the juggernaut we know as Atlanta is inevitable. The current growth in LaGrange is an example of that. For now, Columbus should piggyback on their growth, by forming tie-ins with Great Wolf Lodge, which opens in the May time frame. Hopefully, our community leaders and powers-to-be will see all these posts and start making positive things happen. We can only hope...

[columbusboy8]

Originally Posted by TheYoungProfessional

I doubt our airport would cease air travel even though it happened in Macon, BUT I completely understand your frustration. It's like we have all of this "unfulfilled potential" just waiting to be capitalized on yet nothing is happening. I'm hopeful although I still feel we need new energy leading the way; it seems that current leaders are content and have been that way.

Also, the place neeeds a serious facelift!! Even though commercial air travel is not at optimal levels, the facility is still utilized and should be adequate for the travelers that it serves. Even Albany has reinvested in Southwest Georgia Regional Airport and now has a nicer terminal than we do while servicing probably half of the total number of passengers (rough estimate, I don't have stats.)

What action should be taken? Letters? A Petition? I'm not necessarily sure but maybe the users of this forum could get the ball rolling in some direction even if it's getting these conversations back on the agenda.

I guess I was pretty hard on Macon, and its airport. Today I discovered that it has direct flights to BWI. Good for Macon! All we have are expensive direct flights to Atlanta.

[TheYoungProfessional]

Originally Posted by columbusboy8

I guess I was pretty hard on Macon, and its airport. Today I discovered that it has direct flights to BWI. Good for Macon! All we have are expensive direct flights to Atlanta.

Yeah, that is great for them; they picked up that service mid 2017. I was moreso speaking to the fact that for some years they didn't have any commercial flights at all. Although our air service isn't quite where we want it to be, I doubt if we lose commercial service all together. (Not to negate the point, just making mention.) I think all in all, our airport and Middle GA Regional both have identical challenges as it relates to proximity to Hartsfield.

[columbusboy8]

Originally Posted by TheYoungProfessional

Yeah, that is great for them; they picked up that service mid 2017. I was moreso speaking to the fact that for some years they didn't have any commercial flights at all. Although our air service isn't quite where we want it to be, I doubt if we lose commercial service all together. (Not to negate the point, just making mention.) I think all in all, our airport and Middle GA Regional both have identical challenges as it relates to proximity to Hartsfield.

Good points! While we're waiting for directs to DC, Charlotte, NYC, etc, I'd settle for BWI here too! If Macon can get BWI, surely Columbus can also!

[cwkimbro]

Macon's BWI flights aren't that great, sadly. Not saying it isn't better than nothing.

It is with a small carrier, Contour Airlines, that has no connections and no baggage interlining.

It does 12 runs (both ways) a week.

It is a on a small ERJ-135 and they had to use an essential service subsidy to get, which means they likely won't attract more airlines soon. This also means Columbus won't likely follow suit in attracting that flight. It's a small company looking for EAS contracts.

Macon really has an uphill battle. Service on Delta, American, and United would help them drive up local demand for fliers as people can readily connect to/from anywhere.


CSG gets 3-4 roundtrips/day to a major hub with connections (ignore that it is nearby Atlanta).

That is something more easily to work with for most fliers going to a variety of different destinations.

[cwkimbro]

I found some interesting info on CSG's website.

I'm sure some of you already know it. It seems to be directly from that meeting from a year ago mentioned earlier.

It answers some of the recent questions!

http://www.flycolumbusga.com/wp-cont...ation-1-17.pdf

A few interesting numbers.... which I'm sure came from talks between CSG and American.

They say the flights are a $7,000 round trip investment for the airline to produce. It is a $5m/year investment to start up a route with just 2 round trip flights/day.


Now what they claim the airline wants is a 35% risk mitigation fund. In other words the city needs to have 35% of the $5m to attract the service. They need to be prepared to lose the money. The airline takes risk beyond 35%, but I think Columbus keeps the money is demand surges and AA recoups their investment. The latter is unlikely starting up.


This means they need $1.7m for that 35% risk mitigation fund.

Currently they have the grant for $750,000 that they won from a Federal program to increase competition. They are also offering $200,000 in local incentives in cost waivers (ie. cost of using the airport). That gets them to a 19% risk mitigation.


That is likely where they are stalled. They either need a new source of revenue -or- get AA to take more risk.

AA is probably less likely to do that, because they'd have price competition with DL. That means they couldn't raise rates like DL does now.


They want the program to end in 2 years. That means the route will go away if it isn't profitable on its own.




EDIT: One interesting tidbit for comparison. The Air subsidy Contour is getting for Macon-BWI service is just under $4.7m. It isn't risk mitigation, but an outright subsidy.

[TheYoungProfessional]

Originally Posted by cwkimbro

Macon really has an uphill battle. Service on Delta, American, and United would help them drive up local demand for fliers as people can readily connect to/from anywhere.

CSG gets 3-4 roundtrips/day to a major hub with connections (ignore that it is nearby Atlanta).

That is something more easily to work with for most fliers going to a variety of different destinations.

Agreed. At one point CSG was averaging 7 round trips daily. Small thing to us but in comparison to the other airports in Georgia with the exception of Savannah-Hilton Head, it's actually descent (sadly to say). It may be somewhat laughable, but CSG was the 3rd "busiest" airport in the State and I believe now the 4th and that's even consisdering it's proximity to Hartsfield.

[columbusboy8]

Originally Posted by cwkimbro

I found some interesting info on CSG's website.

I'm sure some of you already know it. It seems to be directly from that meeting from a year ago mentioned earlier.

It answers some of the recent questions!

http://www.flycolumbusga.com/wp-cont...ation-1-17.pdf

A few interesting numbers.... which I'm sure came from talks between CSG and American.

They say the flights are a $7,000 round trip investment for the airline to produce. It is a $5m/year investment to start up a route with just 2 round trip flights/day.


Now what they claim the airline wants is a 35% risk mitigation fund. In other words the city needs to have 35% of the $5m to attract the service. They need to be prepared to lose the money. The airline takes risk beyond 35%, but I think Columbus keeps the money is demand surges and AA recoups their investment. The latter is unlikely starting up.


This means they need $1.7m for that 35% risk mitigation fund.

Currently they have the grant for $750,000 that they won from a Federal program to increase competition. They are also offering $200,000 in local incentives in cost waivers (ie. cost of using the airport). That gets them to a 19% risk mitigation.


That is likely where they are stalled. They either need a new source of revenue -or- get AA to take more risk.

AA is probably less likely to do that, because they'd have price competition with DL. That means they couldn't raise rates like DL does now.


They want the program to end in 2 years. That means the route will go away if it isn't profitable on its own.




EDIT: One interesting tidbit for comparison. The Air subsidy Contour is getting for Macon-BWI service is just under $4.7m. It isn't risk mitigation, but an outright subsidy.

WOW, cwkimbro, you are obviously very knowledgeable about this situation, and the airline business, in general! Folks on this thread, like me, who are frustrated and really care about the long-term success of CSG will be better able to understand what's going on, and put everything in perspective. Thank you!!

I certainly understand that airlines are in business to make money, and want to avoid as much risk as possible. Although frustrated, I am thankful that we have the daily Delta service to and from ATL. If only there were some way to get the major corporations here to step up and help with the risk-sharing. With their deep pockets, and by joining together, they could really help. Maybe even with some kind of long-term loan situation. I don't know if they could, or would, do that, but it's worth exploring.

There is so much potential business here, and if things could just get jump-started, CSG business would increase enough to feed on itself. We can only hope. It's very interesting that Contour has such a LARGE subsidy, rather than a risk mitigation. If it hasn't already done so, seeking a subsidy that it could combine with the grant, might be an avenue that CSG needs to put some energy into and pursue. Thanks again for your interest, support, and all the great information!

[TheYoungProfessional]

Originally Posted by columbusboy8

There is so much potential business here, and if things could just get jump-started, CSG business would increase enough to feed on itself. We can only hope. It's very interesting that Contour has such a LARGE subsidy, rather than a risk mitigation. If it hasn't already done so, seeking a subsidy that it could combine with the grant, might be an avenue that CSG needs to put some energy into and pursue. Thanks again for your interest, support, and all the great information!

This was definitely a forum and conversation worth bringing back to life! I think the Columbus headquartered corporations can do much more although they are already driving a majority of traffic coming through CSG now (at least based on what I've observed). Even though they may be driving business, I wonder if some initiative could be put in place by the airport to further encourage these corporations as well as non-business travelers to take advantage of local services. I think some things could improve with strategic planning and better marketing (maybe not to the degree that we would like but steps in the right direction).