Small Community Air Service Development Grants:
2010 To Be A Challenging Year

Evergreen, Colorado. June 1, 2010. This year's Small Community Air Service Development Grant Program will represent one of the most challenging in the program's history.

"Since it's implementation in 2002, the airline industry has materially evolved," noted Brian Siler of Boyd Group International. "Fleets have moved away from turboprops and 50-seat jets, raising the revenue bar necessary to convince airlines to take risks on new service." At the same time, he pointed out, SCASD grant awards have been slashed from nearly $20 million in grants in the first year, to under $7 in 2009.

What this means is that both the objectives of a SCASD application and the strategies behind it, must be restructured to an airline industry that is very different than when the program was first designed. "The program has enormous value," Siler noted. "It's just that the range and scope of viable grant-supported objectives have changed."

With the decline in unit revenues in the US airline industry, $2-plus jet fuel, declining RJ fleets and an uncertain recession, carriers are much less receptive to new service proposals, even with grant money behind them. "Therefore, communities must look to alternative mechanisms where grants can be effective in improving air service levels," according to Siler.

Boyd Group International has assisted its clients in winning more SCASD grant dollars than any other consultant. Far more - over 25% of the entire award money since 2002. The reason is that the firm understands the realities of the airline industry, and that they constantly evolve. SCASD application strategies must evolve as well.

For 2010, Boyd Group International is advising its small airport clients to first review specific air service deficiencies (if any) and rank them by estimated economic impact to the community. The next step is to candidly determine whether the deficiencies can be addressed by winning a SCASD grant, keeping the reality in mind that the entire program this year may not entail more than $7 million. If there is a deficiency that can be addressed by a grant, the final step is to give us a call to discuss grant application strategies and format.

Currently, it is estimated that 2010 SCASD awards will likely be made within 60 days of the filing deadline - likely before August 15.

Airports interested in discussing a Small Community Air Service Grant application can call Brian Siler at Boyd Group International for a complimentary consultation. For a review of the 2010 SCASD program, click here.

-30-

Contact: Brian Siler (303) 674-2000   E-mail: Brian at AviaionPlanning.com

_____________________________

International Service Potential Analyzed
For Colorado's Vail Valley

Evergreen, Colorado. May 3, 2010. The expertise of Boyd Group International was brought to bear in assisting the Vail Valley Jet Center in analyzing the potential for nonstop international service to Eagle County Airport, the gateway to the growing I-70 Colorado Mountain Corridor.

"This is an evolving global economy," said Tim Sieber, VP/General Manager of Boyd Group International. "Demographics in the US are also evolving, and the I-70 Mountain Corridor is part of that dynamic. From a rural area focused mainly on seasonal ski and recreational traffic, it has grown into a diverse metro-region with a vibrant business and population base."

Boyd Group International reviewed current and forecast traffic demand for Latin American and EU service, including routing options in regard to customs and FIS alternatives.

Clients including airports, financial institutions, airlines and suppliers turn to Boyd Group International for incisive, futurist forecasting and research. The firm has the most comprehensive aviation data and research capabilities in the industry, which provides clients with unrivaled planning firepower. For information on Boyd Group International and its capabilities, click here.

________________

Boyd Group International Analysis:
Iceland Volcano Cuts Domestic Enplanements

Evergreen, Colorado. April 19, 2010. The effects of the trans-Atlantic flight cancellations due to volcano eruptions in Iceland, will inflict approximately $80 million in lost revenue to major US airlines, including measurable losses in secondary domestic passenger traffic that is generated directly by international service.

This is from an analysis accomplished by Boyd Group International, a leading aviation consulting and research firm.

“The financial hit for US airlines goes well beyond the passengers lost on the trans-Atlantic,” noted Tim Sieber, VP of Boyd Group International. “It extends into the domestic market as well, because international passengers also generate significant domestic enplanements.”

He pointed out that on average, each international passenger journey generates approximately 1.4 additional domestic enplanements.

“Passengers to and from abroad don’t all remain in US international gateway cities,” Sieber explained. “That passenger flying from Munich to Atlanta also makes domestic trips within the US, immediately or even days after he enters the US. With these volcano-related international cancellations, our data indicate a loss of more than 90,000 enplanements at airports across America in just the first four days subsequent to start of the Iceland eruptions." At current connection-to-passenger ratios, these enplanements represent approximately 73,000 actual domestic one-way passenger trips.

In terms of actual passengers, US carriers will see a loss of well over 200,000 passengers during the first four days of the event alone. This is a very small percentage of the over 540 million passenger trips carried by US carriers annually. "But it still represents a loss of revenue of nearly $80 million over a short  period - and it's due to an event thousands of miles away in the North Atlantic," Sieber added.

These data again underscore that no communities are immune from events in the global economy. According to Boyd Group International's Airports:USA enplanement forecasts, over 27% of all US passenger enplanements will be directly or indirectly the result of international passenger demand by 2014.

The clear take-away is that an event in a small country such as Iceland can affect business in Ohio and Montana and Nebraska. These new global dynamics affecting all US air service - even down to rural communities - will be a focus of the Boyd Group International 15th Annual Aviation Forecast Summit, to be held in New Orleans, October 24-26, 2010. At the event, clear perspectives of the opportunities and vulnerabilities will be identified that airports, airlines, suppliers, and financial institutions will face in future. For details on this important event, click here.

Contact: Tim Sieber  (303) 674-2000

_______________________.

 

Boyd Group International
Joins With ICAO To Provide International Data

Evergreen, Colorado. April 5, 2010. Expanding its position as the leader in 21st century aviation market intelligence, Boyd Group International is proud to announce that it has partnered with the International Civil Aviation Organization, ICAO, to provide a wide range of traffic and airline data for markets across the globe. This is a major enhancement to the firm's Aviation DataMiner programs.

"This is just the latest in our Global Market Perspectives program," noted Timothy Sieber, VP: & General Manager of Boyd Group International. "There are no more borders. Airports, airlines, financial institutions and suppliers need wider global market understanding, and this agreement with ICAO is a major step in assuring that our clients stay ahead of their competition."

It's A Global Economy - Nobody Is Immune. Having a wider understanding of global traffic trends is important to all areas of aviation, from international aviation suppliers to small airports in the US Midwest, Sieber said.

By 2015, nearly 30% of all US passenger enplanements will be directly or indirectly created by international service. "What happens in Wuhan, China can affect business investment in Bangor," Sieber noted. "With this new access to global market trends, Boyd Group International brings its clients the cutting-edge insights to understand and take advantage of the complex opportunities globalization represents."

Implemented starting in August, 2009, the Global Market Perspectives program focused on expanding the futurist forecast capabilities for which Boyd Group International has become renown. It entailed new staff, building advanced global aviation trend monitoring, and implementing new internal databases to monitor and forecast traffic and fleet trends in various regions.

These have resulted in Boyd Group International bringing incisive, futurist strategic planning assistance to its clients building presence both outside and inside the United States.

More information: Timothy Sieber - VP & General Manager 303 674-2000.
___________

 

Boyd Group International
Assists Greenbrier Resort In Gaining Delta Access

Evergreen, Colorado. March 22, 2010. Lewisburg, WV will have new international and domestic access this summer, thanks to the Greenbrier Resort and Delta Air Lines.

Starting in June, Delta will provide a daily flight from its hub at Atlanta, giving consumers across the globe easy access to Lewisburg and the world-class Greenbrier Resort. In addition, daily seasonal service will be provided from New York/LGA.

"We are honored to have worked with Delta in crafting a plan to facilitate consumers from all over the world in taking advantage of the spectacular facilities offered at the Greenbrier," stated Tim Sieber, VP - Boyd Group International.

Flights begin in June, and are initially offered on a seasonal basis.

This is another example of the professional Air Service Dynamics programs Boyd Group International offers its clients. "We are looking forward to more announcements of air service success in the coming weeks," Sieber added.

__________________

Boyd Group International
Issues 3Q 2009 US Airport Traffic Review
Some Very Interesting Insights

Evergreen, Colorado. January 25, 2010. The nation's airport traffic declined by 2.4% in the third quarter of 2009 compared to the same period in 2008.

Any cursory review of industry load factors shows airlines addressed this decline effectively by reducing capacity. However this did not address the 13.3% decline in average fares.

The average one-way fare paid nationally was $176.22, inclusive of federal fees and taxes, which compares to $203.16 in the third quarter of 2008. Of the 150 airports covered in the Review, 145 experienced declines in average ticket prices.

Cincinnati/Northern Kentucky International: A Bright Spot. Delta Air Lines has been materially reducing hubbing activity at CVG, but this has masked a major spike local O&D traffic. In fact, local O&D at CVG grew substantially more - over 27% - than any other airport in the United States.

The total passengers through the airport declined, but local O&D passenger traffic jumped from just under 902,000 passengers to almost 1.15 million, year over year. Concurrently the average fare paid plummeted by more than one third, from $303.10 to $197.81.

"CVG is by no means a low-fare airport," noted Timothy Sieber, VP at Boyd Group International. "But it's no longer at or even near the top of the ticket-cost hit parade."

The Airport Traffic Review is issued by Boyd Group International, and is a product of the firm's Airports:USA DataMiner suite of aviation and market intelligence tools, the most advanced in the world.

To download a copy of the Airport Traffic Review, click here.

______________________

Boyd Group International
Assists Fairbanks In Recruiting Frontier Denver Service

Evergreen, Colorado. December 17, 2009. Beginning in May, Fairbanks will welcome new service to the Frontier Airlines hub at Denver.

Boyd Group International is honored to have worked with Fairbanks in their efforts to add this additional nonstop access to the Lower 48. This included crafting the community's successful Small Community Air Service Grant that helped attract the service, preparing traffic and revenue forecasts for the new market, and liaison with the airline.  

"All of us at Boyd Group International congratulate the community of Fairbanks and the Fairbanks International Airport on their hard work." stated Timothy Sieber, VP & General Manager. "We look forward to seeing more air service success at Fairbanks in 2010."

Out With The Old. In With The Future. This is just the latest in air service assistance provided to communities by the Colorado-based research and consulting firm. Relying on the most advanced data and forecasting analytics, Boyd Group International helps clients reframe their air service programs within the context of the airline strategies of the future.

Addressing the fundamental shifts in airline industry economics and structure, Boyd Group International has implemented new approaches to air service consulting. These efforts included development of new analytical traffic & revenue software, new forecast methodologies, and new futurist-focused staff.

Boyd Group International is holding a unique interactive air service planning workshop in Denver, January 19 -20. The Analytical Firepower Workshop will cover the new data and metrics airports will need to address in crafting air service enhancement programs in 2010. More information and registration can be found by clicking here.

_________________________

_______________________

 

___________________