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Cliff Moshoginis looks to attract daily flights from Kalamazoo Battle Creek International Airport to Dallas/Fort Worth with a $500,000 grant from the Department of Transportation. FILE PHOTO

By Nathan Peck | MiBiz
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KALAMAZOO and MUSKEGON — Two regional airports are making the case to carriers for adding local air service, arguing West Michigan businesses will take advantage of expanded opportunities.

The Kalamazoo Battle Creek International Airport (AZO) is using a $500,000 grant from the U.S. Dept. of Transportation to help attract new air service to Dallas/Fort Worth International Airport (DFW). The grant will be used in conjunction with more than $323,000 in local matches to attract daily flights directly to and from DFW, connecting passengers with 77 domestic and international destinations.

The DOT grant, which falls under the Wendell H. Ford Aviation Investment and Reform Act, is a revenue guarantee, providing up to $500,000 to an air carrier if the route is not profitable over the course of the three-year contract. Kalamazoo was one of 29 communities in 22 states receiving financial grants under the Small Community Air Service Development Program, intended to enhance its air service and address issues related to high airfares at smaller regional airports.

AZO is currently served by three carriers: American Eagle, Delta and Direct Air. In an environment where volatile fuel costs have stalled airlines’ plans for expansion, the revenue guarantee and local match from Southwest Michigan First sweetens the pot for air carriers. Kalamazoo’s case was strengthened by support from businesses and SWMF, said Cliff Moshoginis, the AZO airport director.

“We are predominantly a business market, which is why is was important to have the support of those organizations. The grants gave preference to public-private partnerships, and if you don’t have something to offer air carriers, you are falling down on the list,” Moshoginis said. “For American, we think this supplements what they have here. They have existing service here, and (a new route) gets them to a warm-weather hub.”

In Muskegon, questions about the future of $650,000 in Essential Air Service federal funding has the airport looking to help its lone carrier, SkyWest United, grow its business. The grant, also a revenue guarantee, ensures carriers operating out of smaller airports generate a modest profit, said Marty Piette, director of Muskegon County Airport (MKG). Piette is preparing for a day when the Congressional funding for the program may be cut.

“It is one of those things that came up recently in the (national debt) debate and will likely come up again,” he said. “The biggest thing we can do is be proactive, be as aggressive as you can without being annoying. You provide information on your community, how you can make it a win-win situation for you and the carrier.”

SkyWest United currently operates twice daily out of Muskegon with flights to O’Hare International Airport. Piette had worked for a consistent flight schedule for the first year of the air carrier’s contract in Muskegon, succeeding in June. Travelers flying out of Muskegon were up 20 percent from June through September. Piette said the fact that flights out of Muskegon leave at 10 a.m. and 7 p.m. limit their usefulness for business travelers headed to Chicago for business or connecting flights. He is heartened that four carriers submitted bids for the next two-year Essential Air Service contract and hopes that a recovering economy will bring additional business travel to the airport.

“Our challenge is capacity and schedule. How do you get more seats? You get more passengers,” Piette said. “A regional airport is a reflection of the community it serves. Things are turning around here, both at the airport and in the community. Unemployment has come down … and I expect to see some level of service coming back to serve increasing numbers of business travelers. As business comes back, there are that many more people who can travel. Travel budgets come back, and it snowballs to some extent.”

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TAGS:

• kalamazoo battle creek international airport
• kalamzoo
• marty piette
• muskegon
• muskegon county airport
• wendell h. ford aviation investment and reform act