ARN Conference 22106

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srq rising A Case Study Using Airline
Incentives to Grow Sarasota Bradenton
International Fredrick J. Piccolo, AAE
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srq Air Service Situation 2004

• Population of Sarasota and Manatee Counties had
  increased 20.5 1994-2004
• Passenger traffic, down 47 1990-2003.
• Passenger total, down 948,000 between 1990-2003
• Daily air carrier operations, down 75.4 since
  1990
• Daily commuter operations, down15.4 since 1990.
• Non stop destinations served, down 77.3
• Loss of five airlines in the last two years, TWA,
  AA Eagle, US Express, Gulfstream, Air Sunshine
• Since 1998, srq has experienced a decrease of
  242,954 Enplaned passengers.

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Small Community Grant Program Application for srq

• Airport, Sarasota and Manatee County Governments
  combine to commit 1,000,000 advertising
  incentive if grant awarded.
• Airport provides 9.00 per enplaned passenger fee
  waiver for new service by any airline.
• Airport applies for 1.5 million SCAS grant to be
  used as revenue guarantee in conjunction with
  Letter of Understanding from AirTran Airways.
• AirTran commits to minimum of three daily flights
  to a minimum of two destinations if srq is
  awarded grant. This will result in an additional
  220,000 seats over 12 month period.

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Small Community Grant Award

• USDOT awards srq 1.5 million in August 2004.
• AirTran announces start of service October 2004.
  Two daily flights to ATL and one daily flight to
  BWI.
• AirTran adds third ATL frequency and non-stop MDW
  in February 2005.
• AirTran adds IND, BOS, LGA, DTW between fall 2005
  and spring 2006.
• Subsequently shifts LGA flight to second MDW
  frequency in spring 2006.

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Additional Airport Efforts

• Airport installed CUPPS equipment with minimal
  airline operational fees.
• Additional revenue diversification benefiting
  carriers due to residual rate making agreement.
  T-hangars, industrial park, commercial
  developments. Non-aeronautical revenue 1.9
  million annually 2005 versus 200,00 in 1995.
• PFCs used for terminal debt service.
• Marketing and advertising assistance for new
  service.

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Year-round Daily srq Service Before AirTran
Entrance, December 16, 2004
Newark
Cincinnati
Charlotte
Atlanta
Houston-Intercontinental
Sarasota/Bradenton
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Year-round Daily srq Service Since AirTran
Entrance, After December 17, 2005
Chicago-Midway
Detroit
LaGuardia
Newark
Indianapolis
Cincinnati
Baltimore
St. Louis
Charlotte
Atlanta
Houston-Intercontinental
Sarasota/Bradenton
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Winter Peak srq Service W-2005/06
Halifax
Ottawa
Moncton
Toronto
Boston
Detroit
Cleveland
Chicago-Midway
LaGuardia
Newark
Indianapolis
Cincinnati
Baltimore
St. Louis
Charlotte
Atlanta
Houston-Intercontinental
Sarasota/Bradenton
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Airport Passenger Growth
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Airport Passenger Growth
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Airline Ticket Pricing Change Since December 04
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Results

• Passenger traffic at srq increases 18.1 after
  one year.
• Five new daily non-stop destinations in first
  year.
• Two new seasonal non-stop international
  destinations.
• One additional new airline (American).
• Local outbound passenger split increases from
  32.4 to 36.8 after one year demonstrating
  changing perception of community about local air
  service product.

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Results

• Cost per enplaned passenger for all airlines
  drops 1.41 despite fee waiver.
• RAC revenues up 340,000 in FY 05. (12)
• Parking revenues up 390,000 in FY 05. (24)
• Incumbent carriers increase service. Delta adds
  LGA, USAirways increases frequency.
• Looking forward srq scheduled destinations
  increased 8.7 into June 2006.
• Looking forward srq scheduled seats increased
  11.4 into June 2006.

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srq rising Thank You