"Florida airport air service grant could generate millions"

Tuesday, September 28, 2004

Airport: Grant could generate millions
By KEVIN MCQUAID
The Sarasota (FL) Herald-Tribune


SARASOTA -- Sarasota-Bradenton International Airport estimates the federal
grant it received in late August will generate $328 million in economic
impact to the region.

Officials also expect that the $1.5 million U.S. Department of
Transportation grant will create 238 new airline and related jobs.

"The new jobs will be a combination of airline, concession and other
employment, some of which is created by the ripple effect that we use to
calculate overall economic impact," said Fred Piccolo, Sarasota-Bradenton
International's chief executive.

Perhaps most importantly for the sagging airport, the grant -- the
centerpiece of a $4 million incentive package designed to lure discount
carrier AirTran Airways -- is expected to boost passenger counts by 15
percent through September 2006.

That increase, which would raise Sarasota-Bradenton's passenger count to
roughly 1.26 million annually, would reverse a decade of declines.

Since 1990, half of Sarasota-Bradenton's annual passenger count has eroded,
as many travelers in search of less expensive fares or more direct flights
have driven to Tampa International Airport one hour away.

AirTran, which is expected to begin direct service beginning in December to
cities like Philadelphia and Baltimore, anticipates that in exchange for the
federal money it will bring 162,500 new passengers through
Sarasota-Bradenton a year.

Those passengers, along with the salaries from jobs created and other
spending, comprise the estimated economic impact figure.

Just as significantly, the AirTran subsidy is expected to boost
Sarasota-Bradenton's "passenger facility charges" paid by airlines and
Federal Aviation Administration entitlement funds it receives.

In all, the gains will add $700,000 annually to the airport's coffers.

Piccolo said he is optimistic that ongoing negotiations with AirTran will
reach fruition soon.

"We've had good discussions with them," Piccolo said Monday, following a
Sarasota-Manatee Airport Authority board meeting.

He acknowledged, however, that talks with the Orlando-based airline have
been pushed back because of recent hurricanes. The two sides are slated to
meet in early October.

Longer term, questions also remain over whether AirTran will continue
serving Sarasota-Bradenton after the federal grant funding has been
utilized. Piccolo contends the airline will stay even after the subsidy
expires.

In a relateded development, the six-member board Monday unanimously approved
a series of resolutions thanking congressional leaders for help in landing
the Small Community Air Service Development grant, which was awarded Aug.
30.

The resolutions expressed "sincere appreciation" to U.S. Sens. Bob Graham
and Bill Nelson, and U.S. Reps. John Mica, Katherine Harris and Jim Davis,
all of whom represent Florida in the U.S. Congress. The board also
acknowledged Gov. Jeb Bush and DOT Secretary Norman Mineta for their
efforts.

The authority praised Piccolo as well.

"Good job, and congratulations," authority member Susan Kelly said, as the
board applauded Piccolo.


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