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September 16. 2012 2:10AM

Airport flights, fliers decline


Passengers traveling to and from flights at the Manchester-Boston regional Airport in Manchester on Friday. (Thomas Roy/Union Leader)
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MANCHESTER — This fall, airlines at Manchester-Boston Regional Airport will offer 45 percent fewer departing flights than they did five years ago — three times the decline nationwide, according to an industry group.

The drop means fewer choices for Manchester fliers and less economic activity generated by visitors and airlines using the state's largest airport, according to officials.

Deputy Airport Director Brian O'Neill attributed the airport's fortunes to a collision of forces: high jet fuel costs, an economic recession and a contracting aviation industry.

“The airlines have a limited resource called an aircraft, and they will put those aircraft in markets that are most profitable to shareholders,” O'Neill said Friday.

Actual passenger numbers have also declined — by 1.6 million travelers, or 37 percent — between 2005's full-year peak and 2011.

Will Stewart, vice president of economic development and advocacy at the Greater Manchester Chamber of Commerce, said some chamber staff and members have “concerns about the decline in flights and ridership and are wondering what that means for Manchester, the Greater Manchester region and the state as a whole.''

“The airport is seen as one of the biggest economic engines in the state, so what are the implications of this?” Stewart asked.

In 2008, the airport created an estimated $1.24 billion in total economic impact, according to a 2009 study. O'Neill estimated that figure now is about $1 billion a year — about $240 million less.

“A decline in the economic impact related to the airport is an absolute concern,” said Jay Minkarah, director of the city's economic development department. But, he added, “because we don't have any one sector overwhelmingly dominating our economy, we're able to weather the ups and downs in one particular area and overall remain strong.”

A vibrant airport is “hugely important” and “can be a deciding factor” of whether a company relocates in a particular community, Minkarah said.

“It's not so much overall numbers; it's can I get the frequency of flights I need to the destination I need to go?” Minkarah said.

Manchester Mayor Ted Gatsas said he and airport officials meet occasionally with airlines not serving the airport, hoping they will offer flights here.

Speaking of the lower flight and passenger numbers, Gatsas said: “There's no button we can push that's going to change it.”

Nationwide, there are 14.5 percent fewer scheduled departing flights for October through December 2012 compared with the same period five years ago.

For Manchester, the drop is 44.6 percent compared with 37.1 percent at T.F. Green Airport in Warwick, R.I., 15 percent at the Portland (Maine) International Jetport and 11.3 percent at Logan International Airport in Boston, according to figures from Airlines for America, whose members and affiliates transport more than 90 percent of all U.S. airline passenger and cargo traffic.

“When airlines' costs rise, their only options are to seek ways to increase revenues and/or decrease expenses,” Victoria Day, the group's managing director of communications, said in an email. “If airlines can't recoup increased costs, service could be impacted, and that is not good for anyone.”

Portland's assistant airport director, Scott Carr, said his airport will see a negligible gain in flights for the last three months of 2012 compared with the same time in 2011. He credited a new terminal that opened last October as well as “very aggressive” recruiting of existing airlines resulting in adding flights to existing cities, including Washington and Newark, N.J.

According to figures from Manchester airport officials, the first half of this year showed a 51 percent drop in the number of flights compared with the first six months of 2005.

“The airline industry is very different in 2012 compared to 2005,” O'Neill said.

He said Logan has captured some of Manchester's business.

At least some airlines serving Logan analyze ZIP code information from credit cards used to purchase tickets, O'Neill said.

“Every time an airline sees they have these airline travelers from the Manchester market traveling to Boston to take a flight out of Logan, it reinforces their assumption they don't need as big a presence in Manchester because they're willing to travel to Logan,” O'Neill said.

“It's difficult when David is positioned against Goliath because we have one-tenth of the daily departures as Logan does,” O'Neill said. Flights and passenger totals don't necessarily track proportionately because airlines can, for instance, replace two 50-seat planes with one 137-seat aircraft, he said.

Unlike Manchester, Logan has recorded gains in passenger numbers both in 2011 and the first half of this year.

“Everybody always wants Manchester, and it all comes down to cost,” Pam Cohen, manager of Milne Travel American Express in Manchester, said of her mainly leisure-travel clientele.

According to federal figures, the average round-trip for passengers using Manchester's airport was $354.33 for the first three months of 2012. That was $11.08 lower than the average at Logan. Those figures didn't include frequent flier tickets or fees, such as those collected for checking luggage.

The average round-trip fare from Manchester rose 7.4 percent between January and March 2011 and the first three months of 2012. That was more than the 5.2 percent hike at Logan or the 4.8 percent rise nationally.

Fares for the first quarter of 2011 were $316.93 for Manchester versus $409.27 for Logan, a $92.34 difference.

Manchester's airport experienced a few bright spots this year.

Figures showed the airport for the first half of 2012 recorded the lowest percentage of late flights and the fewest number of canceled flights in at least the past decade.

Said Cohen: “Every flight I've been on this year, whether it's been out of Manchester or Boston, has been full. They want those planes going out full.”

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Mike Cousineau may be reached at mcousineau@unionleader.com.

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