Pierre Airport May Add Another Flight

Thursday, February 19, 2004

Airport May Add Another Flight
The Capital Journal, U.S.

Pierre’s airport could add third flight to Denver and
a larger passenger plane if market numbers continue to
be strong, the chief executive officer of Great Lakes
Airlines told the air service task force Wednesday
night.

More and more passengers are flying out of Pierre
using Great Lakes, said Charles Howell IV, chief
executive officer of the commercial air carrier.

“We’ve seen traffic grow over here,” Howell said. 

Pierre’s current twice-daily flights are nearly full,
Howell said. More than 11,000 people used Great Lakes
Airlines in 2003, and 2004 estimates are at 14,000.

Great Lakes is up 20 to 30 percent from its sales from
last year in January and February, he said. 

That means the potential is there for a midday flight
to Denver.

That prompted task force chairwoman Laurie Gill to ask
if all of the work that has been undertaken to
establish a task force and hire a consultant is going
to be worth the while, and that more services would be
offered if they could prove the market is there.

“Is what we’re doing going to matter?” Gill asked.

Howell didn’t say yes or no, but said his airline
would look over the results of the airline passenger
study for its determination of additional services.

“To put in a third round trip would cost us about
$800,000,” Howell told the task force.

His airline, like other airlines, is recovering from a
downswing all airlines suffered after the terrorist
attacks that occurred on Sept. 11, 2001.

In addition, Great Lakes’ performance has improved.
Over the last six months, only six flights have been
cancelled, and those were due to ice storms in Denver.

Gill asked if there was a possibility of Pierre
getting 30-passenger propeller planes, which would add
more seats to the Pierre market.

“I think there’s a strong possibility,” said Howell.
“If the market continues to expand, and we’re
anticipating a real good spring.”

His airline would like to get connected to South
Dakota tourism and hunting seasons, he said.

Howell noted that Great Lakes did offer some extra
flights during the hunting season last year, and extra
flights will likely be offered again.

“I think we can be more aggressive now that we’ve
stabilized, and we can do more fun things instead of
crisis management,” Howell said of his company.

However, having smaller jets service Pierre is less
likely because of the expense, he said. 

“It’d be wrong to say it’s not a possibility,” Howell
said, adding that it was difficult to charge enough
for the 50 seats on the smaller jets to cover the
costs.

Howell said that in the past, Great Lakes had been a
franchise of United Express, but its owner decided a
few years ago to detach from United Express and struck
up a partnership with Frontier Airlines, the leading
low-fare carrier in the Denver area.

“Consumers are fare-shopping all the time. There’s
less and less brand loyalty because of it,” Howell
said.

His airline quadrupled its traffic when its
relationship with Frontier Airlines was promoted, he
said.

The airline industry is becoming a commodities
industry, in which “he who has the low fares wins,”
Howell said.

Marlin Roseland, manager of Mesaba Airlines in Pierre,
said small carriers like Mesaba and Great Lakes are
important parts of the bigger airlines that they
serve.

Roseland said Mesaba provides 11 percent of Northwest
Airline’s total bookings.

Yet the small carriers have little control over
service decisions. “They run the show, and we provide
the service,” Roseland said.

The task force discussed the need for marketing.

One idea presented to the task force by Howell was
“leasing” the tail of one of Great Lakes’ airplanes,
on which an advertisement for Pierre would be placed. 

“It’s basically a flying billboard,” Howell said. That
lease costs $2,500 for a two-year contract. 

“You need to spend the money right here, in this
area,” said Don Bollweg, who runs Tumbleweed Lodge
near Harrold.

But Brad Blow noted that bookings are already full,
and marketing could backfire if bookings became
repeatedly oversold.

Bob Grey, the executive director of the Pierre Area
Chamber of Commerce, said he hears complaints from
families who would fly out of Pierre if the fares
weren’t lower elsewhere.

Business people will fly out of Pierre, but families
are less likely, Grey said.

Another task force member said it was seat
availability, rather than cost.

“You pencil it out and be realistic about it, a trip
to Rapid City and McDonalds, you’re not saving any
money,” he said, noting gas and parking fees add to
the expense.

The task force was also given a timeline for its work
by airport manager Mason Short. In March, the
consultant will be retained; from March through June,
analysis on market demand will be done.

In June, an air-service master plan will be developed
using that information; in July, the task force will
talk to the airlines regarding the findings and
establish a marketing campaign.

Gill said she would also like to have representatives
from Mesaba visit with the task force.

The task force’s next meeting is set for 6:30 p.m. on
March 31 at the Pierre Area Chamber of Commerce, at
which time the newly-hired consultant from Mead & Hunt
will be present.

 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dc/dcboard.php

*****************************************