HVN Communicating the Air Service Reality ACI-NA Marketing & Communications Conference Tom Reich, Director or Air Service Development November 10, 2015 Communicating the Air Service Reality New Haven, CT (HVN)
Communicating the Air Service Reality New Haven, CT (HVN) - Slide 1 NEW HAVEN A Continually Brighter Future Education & Culture Yale University & the New Haven Symphony Population Growth Highest population growth rate of any city in New England Top 60 Metropolitan Market Comparable to Knoxville & Omaha Top 30 Media Market Comparable to San Diego & Nashville Recession Proof 77,000 jobs in New Haven held steady through the recession Center for Investment Top 10 secondary city for venture capital deals #2 Bio Science cluster in New England
Source: U.S. Census data provided by Datasheer November 2015 Communicating the Air Service Reality New Haven, CT (HVN) - Slide 2 HVN: 12 th Largest Catchment Area in the Northeast Rank: Airport(s): Population: 1 New York City (NYC): Kennedy/LaGuardia/Newark-Liberty 15,217,206 2 Philadelphia International Airport (PHL) 3,814,999 3 Boston Logan International Airport (BOS) 3,198,283 4 Pittsburgh International Airport (PIT) 2,066,242 5 Bradley International Airport (BDL) - Hartford, CT 2,037,830 6 TF Green Airport (PVD) - Providence, RI 1,969,204 7 Trenton-Mercer County Airport (TTN) 1,645,127 8 Westchester County Airport (HPN) - White Plains, NY 1,609,702 9 MacArthur Airport (ISP) - Long Island, NY 1,517,631 10 Lehigh Valley International Airport (ABE) - Allentown, PA 1,471,705 11 Albany International Airport (ALB) 1,396,209 12 Tweed New Haven Regional Airport (HVN) 1,376,845 13 Stewart Newburgh International Airport (SWF) 1,328,390 14 Buffalo/Niagara Falls International Airport (BUF) 1,233,150 15 Manchester-Boston Regional Airport (MHT) 1,194,892 16 Harrisburg International Airport (MDT) 1,139,086 17 Worchester Regional Airport (ORH) 1,111,885 18 Wilmington Airport (ILG) 1,101,964 19 Rochester International Airport (ROC) 1,067,618 20 Syracuse Hancock International Airport (SYR) 1,066,696 21 Atlantic City International Airport (ACY) 899,899 22 Lancaster Regional Airport (LNS) 878,214 23 Wilkes-Barre/Scranton International Airport (AVP) 749,542 24 Hagerstown Regional Airport (HGR) 724,210 25 Portland International Jetport (PWM) 550,456
Source: U.S. Census data provided by Datasheer November 2015 Communicating the Air Service Reality New Haven, CT (HVN) - Slide 3 HVN: 12 th Largest Catchment Area in the Northeast PQI MSS BGR OGS PBG BTV RKD SLK AUG ART BHB PWM RUT LEB PSM ROC SYR BUF MHT ALB ITH ORH BOS JHW ELM BGM ERI BFD BDL PVD HYA AVP SWF FKL DUJ HVN IPT HPN MVY ACK SCE ABE ISP NYC PIT LBE JST AOO MDT LNS TTN PHL MGW HGR ILG ACY
Source: U.S. DOT O&D Passenger Survey & Adjusted ARC Passenger Booking Data (CY 2013) Communicating the Air Service Reality New Haven, CT (HVN) - Slide 4 HVN Catchment: Top 25 True-Market O&D Domestic Markets HVN Catchment BDL Catchment True Mkt. True Mkt. HVN vs. BDL Rank: Market Name: O&D PDEW O&D PDEW Ratio 1 Orlando/Sanford, FL (MCO & SFB) 347,601 476 442,217 606 79% 2 South Florida (FLL, MIA & PBI) 347,067 475 391,549 536 89% 3 Chicago, IL (MDW & ORD) 163,704 224 162,468 223 101% 4 LA Basin, CA (BUR, LAX, LGB, ONT & SNA) 145,602 199 161,980 222 90% 5 Tampa/St. Petersburg, FL (PIE & TPA) 144,582 198 188,022 258 77% 6 Washington/Baltimore (BWI, DCA & IAD) 130,701 179 267,862 367 49% 7 Las Vegas, NV (LAS) 129,696 178 135,048 185 96% 8 SF Bay Area, CA (OAK, SFO & SJC) 127,622 175 126,858 174 101% 9 Denver, CO (DEN) 98,804 135 98,642 135 100% 10 Atlanta, GA (ATL) 96,404 132 104,798 144 92% 11 Ft. Myers, FL (RSW) 95,506 131 120,259 165 79% 12 San Juan, PR (SJU) 85,767 117 120,614 165 71% 13 Charlotte, NC (CLT) 85,549 117 110,224 151 78% 14 Phoenix, AZ (PHX) 69,292 95 76,181 104 91% 15 Dallas/Ft. Worth, TX (DAL & DFW) 56,299 77 58,460 80 96% 16 San Diego, CA (SAN) 53,895 74 64,860 89 83% 17 Houston, TX (HOU & IAH) 51,125 70 47,904 66 107% 18 Seattle, WA (SEA) 48,766 67 56,513 77 86% 19 New Orleans, LA (MSY) 45,148 62 45,741 63 99% 20 Raleigh/Durham, NC (RDU) 44,547 61 54,085 74 82% 21 Nashville, TN (BNA) 40,857 56 47,616 65 86% 22 St. Louis, MO (STL) 39,713 54 40,716 56 98% 23 Charleston, SC (CHS) 37,667 52 37,913 52 99% 24 Detroit, MI (DTW) 37,463 51 31,493 43 119% 25 Jacksonville, FL (JAX) 35,958 49 38,298 52 94%
HVN Catchment: True Market O&D Passengers by Airport of Use BOS 3% HVN 2% Others* 0% BOS 3% Others** 1% HVN 0% PVD 7% HPN 6% EWR 5% BDL 36% EWR 11% LGA 7% BDL 5% JFK 18% LGA 23% JFK 73% New Haven Domestic True Market (3,372,855 O&D Passengers) New Haven International True Market (1,231,534 O&D Passengers) Source: U.S. DOT O&D Passenger Survey & Adjusted ARC Passenger Booking Data (CY 2013) *ABE, ALB, AVP, ISP, SWF Communicating the Air Service Reality New Haven, CT (HVN) - Slide 5
Source: U.S. DOT O&D Passenger Survey via DataBase Products Communicating the Air Service Reality New Haven, CT (HVN) - Slide 6 HVN s Historical O&D Passenger Levels Total HVN Annual O&D Passengers 300,000 250,000 260,980 238,920 200,000 150,000 131,990 100,000 68,370 50,000 0
Most New Haven Area Travelers Drive to Other Airports BOS Drive Time from New Haven HPN HVN BDL PVD Airport: Time: Miles: Tweed New Haven (HVN) 0:14 4 Hartford Bradley (BDL) 1:01 52 White Plains (HPN) 1:12 54 New York LaGuardia (LGA) 1:38 76 Providence TF Green (PVD) 1:39 95 New York Kennedy (JFK) 1:42 80 Newark Liberty (EWR) 1:58 94 Boston Logan (BOS) 2:32 139 EWR LGA JFK Note: Shortest Routing Shown, Does Not Take Into Account Traffic Source: Google Maps April 2012 Communicating the Air Service Reality New Haven, CT (HVN) - Slide 7
Communicating the Air Service Reality and Developing Air Service Despite Industry Trends Communicating the Air Service Reality New Haven, CT (HVN) - Slide 8
Educating the Community Runway Length is a Limiting Factor Weight restrictions Airlines don t like these types of restrictions Limits new air service options We have a plan to pave runway safety areas to increase takeoff distances by 1,000 Driving to Other Airports Hurts the Community Flying from HVN proves more demand exists High performing PHL serve makes Washington discussions easier to have Prop aversion is making this a difficult sell Network Carriers are Serving Fewer Not More Destinations Larger airports get larger, while smaller airports get even smaller HVN s limited service puts us behind the 8-ball Airlines have an interest in HVN We just need the longer runway Leisure Destinations or LCCs Are Not Possible Without a Longer Runway Airlines don t flag stop for fuel Passengers don t appreciate unnecessary stops en route Longer runway solves this problem Communicating the Air Service Reality New Haven, CT (HVN) - Slide 9
Communicating the Air Service Reality New Haven, CT (HVN) - Slide 10 Funding A Marketing Strategy & Incentive Program How Will We Market New Air Service? Marketing helps fill planes airlines make money We need a plan and a budget We have a marketing plan and budget ready to implement Who Will Pay for the Marketing? Top 30 Media Market Advertising isn t cheap The airport has some money The community needs to put up the rest We have funding sources in place Show Me The Money!!! Pledge to shift Millions in air travel toward new HVN service Fund revenue guarantees Seek SCASDP funds Convincing people to put their money where their mouth is isn t easy
THANK YOU Communicating the Air Service Reality New Haven, CT (HVN)