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Springfield Success
Airport’s ground handling service is off and running
Under the premise that airports can act as more than landlords, Springfield-Branson National Airport (SGF) has successfully helped its airlines cut costs in ways not previously considered.
With a philosophy of partnering with airlines to provide services at a lower cost than the airlines themselves could provide, SGF is one of a handful of airports offering in-house ground handing services. In effect, the airport is keeping the cost of doing business at SGF competitive and increasing the airlines’ yield in their market.
“We like to think we are maybe not the first, but the second in the country to initiate ground handling at an airport,” said SGF Director of Aviation Gary Cyr, noting that the airport-operated service began servicing charters in 2002. “With the activities that took place with September 11, charters no longer had the interest, the manpower, or the horsepower for the cost of business, and they pretty well got out of it.
“We had two choices at that point in time: we could let that business go to someplace else, or we could find a way to ground handle those charters. We elected to ground handle those charters.”
With the acquisition of necessary surplus vehicles and thorough training of staff, SGF started out handling between 80 and 100 charters yearly, striving all the while to break even. Today, SGF handles 84 turns per month on Comair alone with the airline’s three flight per day service from Springfield-Branson to Cincinnati/Northern Kentucky International Airport. And that’s not to mention the twice daily scheduled service to Hartsfield-Jackson Atlanta International Airport or a handful of Allegiant Air flight destinations serviced under SGF contract.
With a basic 50-seat regional jet price of $175 a turn (fuel costs in addition), Cyr believes the prices are reasonable and a large part of the reason the airport has been successful in drawing their clientele. Another is reputation.
“We have absolutely a great working relationship with both Allegiant and Comair, with good communication and coordination across the board,” Cyr said.
But not all carriers have opted to utilize Cyr’s services.“We had bid for Northwest last year and came in lower than what it would cost Northwest to take our business, but they didn’t jump over to us.
Why, you ask? “Northwest is accustomed to running their own program,” Cyr explained.
But on the other side of the coin, SGF’s ground handling service was a key part of the package to attract Comair. “That is one of the pluses that attracts service,” Cyr said, noting that Comair didn’t have to bring in more than the six people that work their counter.
“If an airline were to contract with us, that they would save between 15 and 20 percent in operating their station,” Cyr assessed. “Airlines are going to get to the point where that 20 percent will come into play. I don’t know how much pain and suffering it is going to take airlines to get to that realization, but it is out there. I think you are going to see more of it come into play within the next couple of years.”
For airports interested in providing similar services, Cyr strongly suggests the review of insurance requirements before getting too deeply involved. He also emphasized that critical safety considerations and risk management training is necessary.
For more information, contact ACI-NA Assistant General Counsel James I. Briggs at
jbriggs@aci-na.aero.