Trenton Mercer Airport has new future

Trenton Mercer Airport has new future 
The Trentonian, NJ 
  
03/22/2004 
 
 
Trenton Mercer Airport faces a bright economic future
with a new airline starting operation soon and a third
considering it as a destination point. 

Independence Air is the latest low-fare airline to
consider the Ewing-based airport as a destination.

Owned by Atlantic Coast Holdings, Independence Air
officials are expected to announce in late May which
50 cities they will be flying to. About 90 cities are
under consideration. 

Based at Dulles International Airport located outside
Washington, D.C., Independence Air is hoping to be a
heavy competitor in the Washington, D.C./Virginia
market and along the East Coast.

Independence Air is just one of several low-fare
airlines following a national trend of locating at
small regional airports. Offering alternative routes
to consumers is significantly cutting into the major
airlines’ customer base.

Industry watchers are predicting, as the airline
industry returns to pre-Sept. 11 strength, the
dominance of the major airlines will not be the same.
Instead, regional airlines are expected to dominate
the industry, having experienced an estimated
23-percent growth in 2003. Low-fare airlines
experienced an estimated 19-percent growth as well.

Mercer County Executive Brian Hughes said a number of
factors have to be taken into consideration if
Independence Air did choose to fly out of Trenton.
Those factors include space, equipment, safety and
security. 

Although Hughes likes the idea of having a third
carrier at the airport, he is not heavily considering
it. Admitting Atlantic Coast Holdings has made
inquiries regarding the Trenton Mercer Airport, Hughes
is not giving it much credence. 

"I don’t think they’re coming," he said, since the
county has not heard from the airline since its
initial inquiries.

Atlantic Coast Holdings currently operates routes
under the United Express and Delta Connection
footprint in the eastern and midwestern United States.
Since United filed for bankruptcy last year, Atlantic
Coast has been trying to get out of its lease
agreement. If a settlement cannot be reached, the
Atlantic will honor its contract through 2010. 

But that possibility will not stop the launch of
Independence Air, officials explained in a recent
filing with the Securities and Exchange Commission.

United Airline officials hope to complete its
bankruptcy reorganization in 2004.

"We are proud to be part of the transformation of our
home airport into what will become one of the low-fare
airports in America, and once Independence Air’s
schedule of 350 daily flights is available, we think
of the idea of flying from Dulles will be more popular
than ever before," said Kerry Skeen, chairman and
chief executive officer of Atlantic Coast Holdings in
a press release.

In a December interview with USA Today, Skeen noted
that his company has two challenges. Discontinuing a
working relationship with United, which provided 82
percent of its revenue. And fighting off a takeover
attempt by the Phoenix-based Mesa Air Group.

As Atlantic Coast Holdings faces a challenging
financial future so does Trenton Mercer Airport.

In February, Mercer County officials faced a loss of
about $210,000 in fees at the Ewing-based airport as
Shuttle America announced it was leaving the area.
Although the decision by the Fort Wayne, Ind. based
carrier was not a financial one, the decision was a
strategic one so the airline could acquire more routes
under the U.S. Airways footprint.

Trenton Mercer Airport earns annually about $2.3
million with $1.4 million in aeronautical revenue,
about $68,000 from passenger fees and $174,000 from
rental-car companies. It currently operates with a
$450,000 deficit.

Recognizing a good opportunity, Boston-Maine Airways
(BMA) announced just three weeks later it was coming
to the Trenton area. County officials were gleeful. On
March 29, BMA is expected to begin four daily flights
to Hanscom Field in Bedford, Mass. By April 30, the
airline expects to have seven flights a day and by
summer adding two more flights to Nantucket and Martha
Vineyard.

Shuttle America has announced twice it was delaying
its departure from the area. The company had given
first an April and then a May date. Now it will remain
indefinitely. The airline is continuing its four
flights to Bedford, Mass. and two flights to
Pittsburgh, Pa.

Hughes is very pleased with what is happening at the
airport. Airline competition has come to Mercer
County. Both airlines are offering commuter flights on
turbo prop airplanes for about $100 per passenger.

Consumers can pay a similar price for a one-way ticket
to Pittsburgh on Amtrak. If you book your ticket
earlier, then you can get a discount ticket for
$51.64. Although Amtrak does not go directly to
Bedford, Mass., you can travel to Boston at the last
minute for $157. But depending upon what time you
travel and again booking early, you can buy a ticket
between $70 to $95.

Travelers not willing to pay $100 for a short
distance, can ride Greyhound to Bedford, Mass. on a
one-way ticket for $55.21. Those going in the opposite
direction to Pittsburgh will pay $42.50.

Mercer County has an ever increasing business
community with representatives of a variety of
industries including publishing, financial,
technology, pharmaceutical and biotechnology.

Hughes said although his hopes are high with two
airlines at Trenton Mercer Airport, county officials
are holding their breath as they wait to see what the
impact will be with Southwest Airlines and Frontier
entering the Philadelphia regional airline market. 
 

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