As published in the March 1, 2008 Toledo Business Journal
Eric Frankl, A.A.E.
Toledo Express Airport / Metcalf Field
Decline of passenger traffic at Toledo Express can be reversed
Toledo Business Journal recently interviewed Eric Frankl, A.A.E., airport director,
Toledo Express
Airport / Metcalf Field. He shared the following thoughts.
Toledo Business Journal: In the February 1st issue of Toledo Business Journal, an editorial titled, Use it or lose it, was published that discussed the decline in passenger traffic at Toledo Express Airport during the past several years. Can you discuss the passenger traffic levels at Toledo Express Airport during the past three years?
Eric Frankl: Toledo Express Airport has indeed seen a steady decline in pax [passenger] traffic over the past three years largely contributed by airline bankruptcies (Chapter 11: Delta, Northwest, US Airways, ATA; Chapter 7 liquidation: TransMeridian) following the terrorist attacks of 9/11. These bankruptcies have had a significant impact on Toledo Express as TransMeridian, ATA, and US Airways equaled roughly 35% of the total seats available out of Toledo. In addition, however, Delta also cut almost 50% of its seats at Toledo Express while maintaining service, thus compounding the problem even more. Overall, Toledo has gone from having roughly 50,000 available seats a month to 20,000 seats a month over the past 3 years. Obviously, with fewer seats available, it is no surprise that we have fewer passengers traveling through our facility. While this development is unfortunate for Toledo, I would also note that many airports in our region and around the country have experienced similar cutbacks.
TBJ: What are the major factors behind the decline in passenger traffic at Toledo Express Airport?
EF: Again, a major cause of passenger decline has been due to airline bankruptcies; for example, US Airways shuts down Pittsburgh as a major east coast hub, thus causing US Airways to draw down service to more than 75 markets and more than 400 daily flights including Toledo. Another example was ATA Connection, which offered six daily flights from Toledo to Chicago-Midway; while it – on its own – was financially viable, its parent company, ATA, went into bankruptcy and was purchased by Southwest. Southwest, as many know, does not fly to communities the size of Toledo. ATA Connection offered excellent low-fare service and its loss significantly hurt Toledo as well as 13 other small markets. It is important to note that none of the airline cutbacks were caused by our community and certainly not the Port Authority. Our community was disproportionately hurt by airline bankruptcies that were, of course, out of any of our control. Of course, the most recent concern is the soaring fuel prices that may result in making the aircraft that serve the Toledo market uneconomical for the airline to operate.
TBJ: Toledo Express recently obtained a commitment for additional seating from Continental Express. Can you discuss this?
EF: We are extremely pleased that our continued discussion with Continental Airlines has finally paid off. Effective in February, Continental Connection began the transition to a larger, more comfortable cabin class aircraft, which will provide seamless connecting service to popular destinations throughout the Northeast, Canada, and Florida. Northwest and Delta frequent flyers will also be able to earn a minimum of 500 miles on each flight segment originating from Toledo, all while still earning qualifying miles for their respective frequent flyer programs.
TBJ: What is the status of direct service from Toledo to New York?
EF: First off, be assured that attracting new service to NYC has been a priority since the Port Authority applied for and won a federal grant in the fall of 2006. However, it should be noted that, even in the best of situations, it was going to be an uphill battle to find the right airline partner willing to share the financial risk in these difficult times. Further complicating the effort, the ongoing congestion issues at the New York airports and the industry’s efforts to reduce activity at those airports make it even harder for small communities to gain access to the New York market. As we look ahead, we are hopeful that we will be able to find a solution in the near future. However, it may very well be a situation where an airline offers three to five flights per week (instead of daily) with flight times convenient for the leisure traveler or business traveler that might want an affordable option for a quick day trip out and back the same day. Stay tuned. In the end, if we are able to find an airline partner willing to try the service, it will be up to the community to support that service. The Port Authority can facilitate air service development but it is up to the business community and leisure passengers to use the service.
TBJ: What impact will the possible consolidations involving Delta Airlines, Northwest Airlines, United Airlines, Continental Airlines, or others have on Toledo Express Airport?
EF: There are way too many variables and unknowns to be able to forecast any merger’s impact on Toledo Express. The airport industry is actively engaged in the debate, but only time will tell how our community will be impacted. Overall, I believe that we have good air service options on a variety of airlines at Toledo Express. If we support our local airlines, we will have demonstrated the strength of our market regardless of the outcome of mergers in the industry, and we can retain and possibly expand our air service in Toledo.
TBJ: Can you discuss the objective of your campaign called Fly Local – Buy Local?
EF: It is of our opinion that our economic development campaign, Fly Local – Buy Local, is one of the easiest economic initiatives that our region can undertake to win back an estimated $82 to $100 million that leaves our region. We are seeking the support of all travelers, and more particularly, the business travelers. We want them to ask the following when they make their travel plans: 1) Check TOL First prior to making airline reservations via a local travel agent or through our booking engine, www.flytoledoexpress.com; 2) Utilize our current non-stop flights to Atlanta, Chicago, Orlando, and Tampa; 3) Consider starting your international trip from Toledo, especially if it would require a connection anyway – example San Palo, Brazil; Shanghai, China; and Moscow, Russia are all markets not served nonstop from Detroit; 4) Consider the fact that flights from DTW or other area airports really aren’t non-stop since one has to leave the home or business at least two-and-a-half hours prior to the departure time and [the trip] requires an intermodal connection and also adds additional costs – sedan / limo fees, IRS mileage reimbursement of 50.5 cents per mile, one way rental cars, etc.; 5) Consider flying in suppliers, vendors, and consultants to TOL instead of other area airports. We believe if our community makes this commitment, we will be able to maintain and possibly grow our passenger levels.
TBJ: Can you explain the economic impact for our area if a small percentage of travelers shift to using Toledo Express versus Detroit Metro?
EF: As it stands right now, a consultant’s study indicated that between $82 and $100 million annually are escaping our region to another state’s economy. All we ask is that businesses support our Fly Local – Buy Local program. We should all remember that the airport is a community asset, and it is up to the community to support it. It’s worth noting that Toledo Express Airport generates an estimated $650 million in annual economic impact to our community. The more we support it by using it, the more flights and options can be offered. In the end, the Port Authority doesn’t buy tickets; the community does, so we can’t do it alone. We are, however, responsible for maintaining and ensuring that we have the best possible facilities at affordable operating costs, and we are committed to doing that. We will also continue to build relationships with airlines and community stakeholders and ensure that we market our facility and our community and try to maximize its potential.
TBJ: What support do you need from business leaders and others in our area in order to realize the economic benefits from increased use of Toledo Express Airport?
EF: It is a priority that we attract additional support and commitment from the regional business community to ensure that Toledo Express can offer convenient, hassle-free travel options to destinations throughout the world, saving travelers time and money. If we all commit to using Toledo Express, we will keep northwest Ohio on the route maps of major airlines and continue to allow residents of Toledo and northwest Ohio access to the air transportation system in our country and to the world.