SARAA invests $100,000 into a new Air Route Development Program

(York, PA – May 24, 2011)  The Susquehanna Area Regional Airport Authority (SARAA), meeting today in York County, announced a $100,000 investment into a new air service route development program designed to support new nonstop airline service at Harrisburg International Airport (HIA).

“Affordable, diverse and reliable airline service is a key driver of a region’s growing economy,” said Tim Edwards, HIA executive director. Over the past 5 to 10 years many regional entities throughout the country have partnered with airlines to provide marketing support and a source of funding for a revenue guarantee program.  A revenue guarantee provides third party financial assistance to an airline enabling it to break even financially until regional travel patterns are changed and the route becomes viable on its own.  The financial assistance is usually provided over a limited time, often for a 12 or 24 month period.  If the new service is profitable, no money will be sent by the region to the airline.

Edwards explained that while Federal Aviation Administration (FAA) guidelines allow airports to provide marketing support for airline service, an airport authority cannot provide money for a revenue guarantee program.  As a result, SARAA’s investment will only be used to market any new service that comes to HIA in association with this program.

According to Edwards, there is an independent entity that will administer this program on behalf of the region.  That entity is finalizing the exact structure of the program.  Since the air route development program is designed to be a public/private partnership, a corporate outreach program is planned for later this summer.  Last month, the Dauphin County Commissioners committed $100,000 to the revenue guarantee portion of the program and pledged to match additional contributions up to a total of $375,000. 

HIA TRAFFIC DOWN SLIGHTLY IN APRIL 2011

The Authority reported that 105,693 total passengers used HIA during April 2011 which was down less than one percent (0.9%) when compared to April 2010.  Year-to-date traffic at HIA is up 6.2

percent as nearly 404,000 people have using the facility.  “Due to higher energy costs and airlines raising fares across the country to compensate for the increasing cost of fuel, we saw a slight decline in travel in April,” said Fred Sembach, SARAA Board member.   US Airways and American continue to serve an increasing number of passengers at HIA. 

SARAA AWARDS $1.6 MILLION IN NEW CONTRACTS

Also today, the SARAA Board awarded the following contracts

*- contract awards contingent on availability of FAA funding

Sembach stated, “While it was the smallest award we took action on today, the supplemental task award to HRG is significant as it should enable us to renew our General Stormwater permit associated with construction projects at HIA.  This action, combined with our continuing efforts to obtain permits for work on the stormwater retention pond located along route 230, clearly demonstrates our commitment to addressing the issues associated with stormwater runoff and its impact on our neighbors.”

The next SARAA Board meeting will take place at 8:00 am on Wednesday, June 22^nd, 2011 in the David C. McIntosh Boardroom, 3^rd Floor at Harrisburg International Airport, Middletown, PA.