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County Makes Case For Local Air Service

P-J file photo

Chautauqua County has officially started its latest push for an Essential Air Service designation from the federal government, and it is much different than previous proposals.

The highlights are commitments for $147,000 in monetary support for the airport from civic officials and businesses, $151,000 of in-kind support from civic and business officials and the addition of Baltimore-Washington International Airport as an additional hub along with Pittsburgh.

County Executive George Borrello filed the latest Essential Air Service designation request with the federal Transportation Department on Sept. 17. The federal government denied an application to reestablish service at the county airport in February, citing concerns about competition from the Buffalo and Erie airports, and what Transportation Department officials termed an “overly optimistic” ridership projection. In his Sept. 17 letter to Kevin Schlemmer, Essential Air Service Division chief, Borrello wrote that the county took a new approach after the Transportation Department’s February denial.

“We fully accept the rationale and conclusions articulated in the Secretary’s Order rejecting our earlier proposals to re-establish scheduled service between (Jamestown) and (Pittsburgh), and evaluated other factors that contributed to the decline and ultimate termination of earlier EAS-contracted passenger service. While the cumulative effect of past errors and missed cues in the evolving complexion of commercial air service made termination of Southern Airways’ EAS-contract route between (Jamestown) and (Pittsburgh) inevitable, the fundamental need for commercial carrier service is enduring and the elements of a more robust and sustainable business plan are well within our means,” Borrello wrote. “This joint proposal embodies a fresh approach to operating commercial air service to Jamestown that incorporates resources, business acumen and community participation that has atrophied since our erstwhile hometown airline, Chautauqua Airlines, was acquired by an out-of-town investor and left the area in the early nineties.”

In addition to the new hub and additional community financial support, Borrello said the county plans to step up marketing and traveler support services to help inbound air travelers find destinations and lodging in the county.

P-J file photo by Dennis Phillips

Other options include changing the flight schedule so there are additional flights during the summer and fewer during the winter.

“Achieving discriminating value through direct commercial air travel to Jamestown requires a sizable financial and resource commitment. We have reached out to the business and civic community and secured those resource commitments through multi-year pledges of support,” Borrello wrote. “The combined direct financial support of $147,000 annually for the proposed duration of the contract is an important manifestation of that support. A comparable broad base of support from all sectors of the business community offers high assurance that our business and civic partners will apply their considerable energies and influence to steer travelers to the Jamestown airport and Boutique booking portals.”

FRUITS OF SUMMER LABOR

After the federal government denied the county’s last Essential Air Service application, Borrello, U.S. Rep. Tom Reed, R-Corning, and other local officials embarked on a spring and summer project to see if there is local support for the airport. Borrello wrote that it became clear that the National Comedy Center and Seneca Nation casinos require air carrier routes that bring more visitors to the area while industries including Cummins Inc., Truck Lite, Wells Enterprises and Athenex require robust and efficient connections to major hub airports and national carriers. A survey earlier this year identified airport location and availability of commercial flights as the two most important factors to be considered. An analysis of ticket sales to non-local patrons of Chautauqua Institution showed the two largest markets for institution travelers are Baltimore-Washington (10.4% of sales) and Pittsburgh (9.4% of sales).

“Consequently, our proposed route structure offers daily non-stop flights to the two largest markets identified in our research; Pittsburgh and (Baltimore-Washington),” the plan states. “These robust and growing hub airports also serve as network hubs for Boutique’s codeshare partner, United Airlines, and interline collaborator, American Airlines.”

A corporate charter plane parked at the Chautauqua County-Jamestown Airport. In total, 2,778 flights flew in or out of the airport in 2018, with 3,571 passenger flying into Jamestown.

Meetings with civic leaders and business owners led the county to launch a commercial air service sponsorship program. Municipal partners will make $12,000 of in-kind contributions, the business community has committed $75,000 in cash and $87,000 of in-kind contributions and the county, as the airport sponsor, has committed $72,000 cash and $52,000 of in-kind contributions. The $298,000 total contribution represents 10% of the airport’s proposed operating subsidy and comes with a three-year commitment.

“The outpouring of business community support for reinstatement of commercial air service to the community is profound and broad-based. In consideration of the urgency imparted on the part of business community leaders we have thus far focused on gaining underwriting support for the commercial air service from the 40 largest businesses in the area. The upwelling of business community support is far broader than this initial pledge drive might suggest and we fully intend to organize, channel and leverage that support through establishment of an airport marketing team that will focus on sustained growth of commercial air services to the region,” the plan states.

BOUTIQUE’S OFFERINGS

Boutique Air will offer flights 30 nonstop flights a week during the busier spring and summer season, 18 a week to Pittsburgh and 12 to Baltimore-Washington. During the slower fall and winter seasons, flights will decrease to 24 a week, 12 each to Pittsburgh and Baltimore-Washington.

“The intended flight schedule, particularly early departures and end-of-business day flights, will deliver passengers between the two destinations at intervals that will promote consistently high load factors, and within timeframes that permit timely connections to end destinations from the objective hub airports,” Borrello wrote in the plan. “In recognition of seasonal air travel patterns prevalent in this market, Boutique proposes scheduled flights that meet demand during peak summer and fall seasons and reduce services in winter months when discretionary tourist travel ebbs. The operational agility to align resources with market demand will help to maintain high load factors year-round.”

Adding Baltimore-Washington to the mix of flights changes the financing drastically from the 2018 proposal. Boutique Air is now proposing an additional 611 completed flights and 2,320 additional passengers a year. The average fare has increased from $35 to $75, though expenses are increasing $1,108,416 a year. Boutique Air is asking for federal subsidies of $2,980,608 in the first year and $3,070,027 in the second year. The 2018 proposal requested subsidies of $2,500,484 and $2,562,996, respectively.

Even with the county and local businesses picking up 10 percent of the subsidy cost, the new plan would barely meet the Essential Air Service Program’s $200 rule, which mandates subsidies per rider don’t exceed $200. The first year subsidy under the new application would be $200.26 per rider compared to $199.02 in the 2018 proposal.

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