Richmond International Airport

[wrldcoupe4]

Flack-

You may have opened a can of worms by answering questions, but it's much appreciated. Could you mention some O&D markets that look good for future direct flights from RIC but currently have none?

[burt]

And, Flack, while you're in the question-taking mood: Remember when a Jet Blue official said they were so pleased with their RIC operation they hinted that service to additional cities was under consideration? Do you suppose it's still in the back of their collective minds? So far, only Orlando has been added, though FLL is new-ish at the expense of one JFK flight.

And do you folks at the airport despair of Southwest entering the market?

I've always believed that Las Vegas would be attractive enough to lure a flight or two from RIC for Central Virginians and other nearby regions. Doesn't Southwest have a focus city or hub arrangement with Vegas?

Edited August 7, 2008 by burt

[Shakman]

And, Flack, while you're in the question-taking mood: Remember when a Jet Blue official said they were so pleased with their RIC operation they hinted that service to additional cities was under consideration? Do you suppose it's still in the back of their collective minds? So far, only Orlando has been added, though FLL is new-ish at the expense of one JFK flight.

And do you folks at the airport despair of Southwest entering the market?

I've always believed that Las Vegas would be attractive enough to lure a flight or two from RIC for Central Virginians and other nearby regions. Doesn't Southwest have a focus city or hub arrangement with Vegas?

Southwest has a very large presence at McCarren (Vegas).

Edited August 8, 2008 by Shakman

[Henry]

Henry, I always appreciate route requests, but looking at 2007 traffic, IND was RIC's 36th-largest O&D market, MCI #33. Unless either of those markets see a carrier establish a meaningful focus operation, unlikely to see this develop soon.

The only comparison in recent times was Skybus connecting Richmond & Columbus (40+ ranking). Traffic went through the roof, but the carrier's business model could not survive record-high energy costs.

Thanks flack...I was just teasin'. Although I do appreciate the information. My in-laws live in KC and I travel to Indy twice a year.

[flack4ric]

Several good questions above, I will gladly tackle'm wheb back in the office next week, as some require reference to data.flack4ric

[eandslee]

Thanks for the quick feedback. Addressing some of the comments:

eandslee:

• I would appreciate airport any webcam links where you think they're doing a good job. There are some potential operational and security concerns regarding this issue for airside cameras.
  
• Aside from information which might assist customers using the airport, construction projects are not emphasized on the site currently. More info soon though as the Airport Drive improvement project (I-64/Route 895 connector) moves towards completion. This is one of three projects (Henrico will improve Airport Drive-Charles City Road intersection, and Transurban will build Airport Connector off Route 895) that will collectively improve airport access to/from the southern portion of our service area. Shakman posted a good general recap of observations about two projects currently underway.
  
• Future development: the airport is working on an update of its Master Plan, and soon expects to submit it to the FAA. Once this effort is completed, a section of the web site will include an overview of a development roadmap for the next 20 years.
  
• We actively market RIC as an option in areas outside of the core market area, and have seen good results due to highway congestion/high fares/limited service in other metro areas.
  
• Focus cities are driven by air carrier needs, and population is one important factor. We are on the small side - definitely - for a hub, and a bit of a reach even for a focus city. Focus cities also tend to concentrate a majority of operations under one marketing carrier's umbrella. At present, Richmond Region travelers are seeing the benefit of increased competition.
  
• Regarding growth, in the current environment, we have been fortunate to maintain seat capacity as energy costs are dramatically changing service patterns across the country, to cities large and small. Assuming the climate changes in the future to one more supportive of new route development, we would love to fill some service gaps (destinations), and expect that our best prospects are with carriers presently in the market.
  

burt: the AirTran (LGA) and JetBlue (MCO) additions do not come at the expense of other service offered from RIC, respectively, by each airline. Also, a FedEx regional ground hub could certainly be explored without airport participation, but I can say that FedEx runs a tight ship here for its air services.

Again, thanks for the feedback about the new site.

flack4ric

Flak4ric

[JanHruska]

Flak4ric

[eandslee]

[*]Focus cities are driven by air carrier needs, and population is one important factor. We are on the small side - definitely - for a hub, and a bit of a reach even for a focus city. Focus cities also tend to concentrate a majority of operations under one marketing carrier's umbrella. At present, Richmond Region travelers are seeing the benefit of increased competition.

I'd also like to address the comment above. There are parts that I agree with (e.g. - "We are on the small side"

Edited August 10, 2008 by eandslee

[burt]

This chart and map shows anticipated plane seats available in November of 2008. It's from USA today:

http://www.usatoday.com/travel/flights/air...apacity-map.htm

Move your cursor over the desired state.

RIC is in better condition than Virginia airports listed.

As the chart above shows, RIC is expected to fill about 7,000 seats daily while comparable cities are anticipating decreases.

I agree with Eric about the passive/aggressive nature of the region. Perhaps the status quo has sustained the local economy over generations, but it would be gratifying to see a more "can do" attitude.

I'm sure the new facility could easily handle double the anticipated loads. Further, the argument that RIC is in the shadow of three major airports to our immediate north, each of which is operating at near capacity, does not diminish possibilities of "focus" attention locally, IMO. Rather, the situation should enhance Richmond's attractiveness as a major airport.

Flack, what effect has the relocation of Virginia Air National Guard had on airport plans? One would think it could be utilized as a major freight port, or perhaps even as an important International terminal.

This may sound rediculous, but has anyone on the airport board considered hiring the Martin Agency to promote RIC? It is among the top National ad agencies and is located in Shockoe Slip. I bet a quarter they could stir up a lot of interest in "flying Richmond."

Edited August 10, 2008 by burt

[MicoMiles]

As the chart above shows, RIC is expected to fill about 7,000 seats daily while comparable cities are anticipating decreases.

I agree with Eric about the passive/aggressive nature of the region. Perhaps the status quo has sustained the local economy over generations, but it would be gratifying to see a more "can do" attitude.

I'm sure the new facility could easily handle double the anticipated loads. Further, the argument that RIC is in the shadow of three major airports to our immediate north, each of which is operating at near capacity, does not diminish possibilities of "focus" attention locally, IMO. Rather, the situation should enhance Richmond's attractiveness as a major airport.

Flack, what effect has the relocation of Virginia Air National Guard had on airport plans? One would think it could be utilized as a major freight port, or perhaps even as an important International terminal.

This may sound rediculous, but has anyone on the airport board considered hiring the Martin Agency to promote RIC? It is among the top National ad agencies and is located in Shockoe Slip. I bet a quarter they could stir up a lot of interest in "flying Richmond."

Respectfully, RIC will never be considered a "major" airport. The airport does not have the infrastructure. More importantly, where will the money come from to make RIC a "major" airport? There are a lot of airports much larger than RIC that are completely underutilized. DFW in Dallas may be shutting down one of their terminals because of airline cutbacks. St. Louis is another airport with facilities capable of handling a "hub" status as it did for TWA and AA. What about Pittsburgh??? And don't forget, airlines have to pay landing & gate fees in order to utilize an airport. With so much excess airport inventory (terms & gates), what makes you think that an airline CEO will consider RIC as a hub or focus city when other cities/airports have the facilities ready right now. It would take many many years just for RIC to compete. I wouldn't be surprised if we see a merge between 2 or more legacy carriers within the next 5 years. If it does happen, expect the number of flights reduced in RIC as well as many other cities. I fly for USAirways and I see a lot of airports larger and smaller than RIC with empty gates that are suffering from the airline cutbacks.

Lets keep RIC the way it is and support the airlines that serve the airport.

[burt]

Respectfully, RIC will never be considered a "major" airport. The airport does not have the infrastructure. More importantly, where will the money come from to make RIC a "major" airport? There are a lot of airports much larger than RIC that are completely underutilized. DFW in Dallas may be shutting down one of their terminals because of airline cutbacks. St. Louis is another airport with facilities capable of handling a "hub" status as it did for TWA and AA. What about Pittsburgh??? And don't forget, airlines have to pay landing & gate fees in order to utilize an airport. With so much excess airport inventory (terms & gates), what makes you think that an airline CEO will consider RIC as a hub or focus city when other cities/airports have the facilities ready right now. It would take many many years just for RIC to compete. I wouldn't be surprised if we see a merge between 2 or more legacy carriers within the next 5 years. If it does happen, expect the number of flights reduced in RIC as well as many other cities. I fly for USAirways and I see a lot of airports larger and smaller than RIC with empty gates that are suffering from the airline cutbacks.

Lets keep RIC the way it is and support the airlines that serve the airport.

Your last line is exactly the kind of complacency to which I was referring. When you see in the USAToday chart that RIC anticipates an increase in passenger volume (albeit slight) while most cities, big and small, are losing seats, it's an indication that the airlines ARE being supported locally. Of course there will be ups and downs, but 10 years ago nobody dreamed 3,600,000 people would be flying in and out of RIC. I'm old enough to remember when the terminal at Byrd Airport (now known as RIC) was a war-surplus quonset hut. Due to the "glass-half-empty" theory, it took decades for the Region to acknowledge the importance of air service.

As far as money source is concerned, wouldn't lines such as the one you fly invest in infrastructure? They do it all over the place in conjunction with localities -- buying jetways, even building terminals in some instances.

No. Let's NOT keep RIC the way it is. Support the airlines, yes. But through vibrant marketing, strive for better.

[eandslee]

Your last line is exactly the kind of complacency to which I was referring. When you see in the USAToday chart that RIC anticipates an increase in passenger volume (albeit slight) while most cities, big and small, are losing seats, it's an indication that the airlines ARE being supported locally. Of course there will be ups and downs, but 10 years ago nobody dreamed 3,600,000 people would be flying in and out of RIC. I'm old enough to remember when the terminal at Byrd Airport (now known as RIC) was a war-surplus quonset hut. Due to the "glass-half-empty" theory, it took decades for the Region to acknowledge the importance of air service.

As far as money source is concerned, wouldn't lines such as the one you fly invest in infrastructure? They do it all over the place in conjunction with localities -- buying jetways, even building terminals in some instances.

No. Let's NOT keep RIC the way it is. Support the airlines, yes. But through vibrant marketing, strive for better.

I couldn't have said it better myself, Burt! While I agree with Burt 100%, I can understand where micromiles is coming from. However, the way I see it, those are just obstacles that have to be overcome to reach the greater goal for RIC...that is, if I were in charge of the airport. True visionaries see well beyond the obvious obstacles and work to achieve the goal no matter the circumstances. Who's to say what the airline industry will be like in 5, 10, even 15 to 20 years from now? There is a good chance that the industry will look a whole lot different than it does now! That is to say, big players in the industry now or in the past may wind up being nothing years from now and vise-versa. All I'm saying is that I'd like to see RIC become visionary and strive to become a major player in the future! One way to do that is to exploit opportunities now, which could benefit RIC perhaps 10 years from now. No one thought that David could defeat Goliath either, but he did! So, never say never! That's the attitude I would like to see at RIC!!

Edited August 10, 2008 by eandslee

[flack4ric]

Looks like I have a lot to follow up on, will try to post in detail later today. I applaud the spirited nature of the discussions....

[eandslee]

Looks like I have a lot to follow up on, will try to post in detail later today. I applaud the spirited nature of the discussions....

I look forward to what you have to say flack4ric. Thanks again for addressing our comments/questions. By-the-way, I love your signature line!

[burt]

I look forward to what you have to say flack4ric. Thanks again for addressing our comments/questions. By-the-way, I love your signature line!

Me, too! Is it a Martin Agency brand?

[flack4ric]

By-the-way, I love your signature line!

Thank you, eandslee. It was a pleasure working through various options, updating the airport logo and other branding/communications tools after the completion of the new terminal. This design actually emanated from a micro design we needed for a web application.

I've read through comments over the last 4-5 days, and want to address several of the questions and statements made during this period.

Target O&D Markets

These are the top several O&D markets (by passenger traffic) currently without nonstop service:

• #6 LAS - Las Vegas
  
• #7 CMH - Columbus (probably dropping back to 40th-ranked market with service cessation by Skybus)
  
• #10 DEN - Denver
  
• #11 TPA - Tampa
  
• #12 LAX - Los Angeles and surrounding region
  
• #15 PHX - Phoenix
  

With the exclusion of Columbus and the exception of Tampa, all are long-haul markets affected by high energy costs. LAS, in addition to distance, is a market dominated by leisure travelers, and thus a very hard sell these days as carriers focus on higher-yielding passengers.

JetBlue Expansion?

JetBlue has added two markets since this time a year ago, and has shown a willingness to do more if the flights are supported by travelers. I can tell you that JetBlue has developed a loyal following in Richmond. I think JetBlue's highest priority right now, like other carriers, is successfully navigating these challenging times.

Southwest?

Only the good folks at Love Field know where RIC stands on the franchise development timetable, and they tend to hold their cards close until ready to go public. The addition of the service at IAD probably pushed RIC development back a bit.

LAS & Southwest

While true that Southwest has a huge presence at McCarran, they do not open markets up for 1-2 daily departures, so adding RIC only to connect to LAS is out. Keep in mind that US - RIC's #1 or #2 carrier in terms of passenger traffic (depending when you check) - has a substantial footprint at PHX and LAS.

Airside Web Cams

I looked at the links provided, and both are operated by news networks. It is not clear if the cameras are on airport property or that of a tenant such as an FBO. At some airports, cameras are affixed to nearby structures such as hotels, facing into the airfield. At least one local network affiliate in the area has had a camera panning certain areas of the airfield in the past, but not sure of current status. I know my budget, very tight, has no room for "expansion." Honestly, too, I must admit I have some reservations about a web cam facing movement areas. We have seen British royalty and several US presidents (past & present & hopefuls) at RIC in the recent past, and hundreds of diversions each year. For various reasons, it strikes me as too much information.

Web Site Marketing

This may be a philosophical difference in that the airport approaches the web site as a public information portal, running 24/7. We do conduct other activities, including traditional and new media, to promote use of service at RIC to outlying communities. The homepage of the new site, I'll note, now offers banners promoting new service that are linked to web sites for respective air carriers. Prior to 7/21, flyrichmond.com was "ad free." If you're looking for a more aggressive message, sign up for our OnTime e-newsletter by going to the home page at http://www.flyrichmond.com/ and look for "subscribe" in the upper right-hand corner. Of course, it's free.

Focus City & Beyond

Confucius say: To grow air service, communities must make jobs and make babies.

Size does matter here. The Greater Richmond Region is growing at a nice clip, has a high quality of life, but is decidedly a mid-sized community with a significant corporate (Fortune 1000 HQ) component. Based on DMAs, Richmond is a bit short of 1.4 million residents, Nashville is ~2.5 million and Milwaukee is ~2.3 million. Don't forget Nashville's history as an AA hub (RDU as well), and the fact that Midwest is based in Milwaukee and has been for many years.

Location certainly matters, as air carriers serve a location in pursuit of good customers. Geographically speaking, not as important as when Brownsville, TX, was Pan Am's gateway to Latin America. As an airport operator, we are aware of several advantages RIC and its location offer for potential customers in "line of indecision areas" such as Fredericksburg, and market to these areas.

Glass Half Empty?

This perspective may exist, but I generally hang out with the pro-development crowd. While many people have fond memories of the old Byrd Field, most would prefer not to turn the clock back. RIC is not trying to be the next Cat X airport, but we do intend to be a meaningful, convenient solution for travelers to and from Central Virginia. Recapping some of the recent notables:

• Traffic increase of ~45% from 2004 to 2007. RIC was the second-fastest growing Top 100 airport in 2006, trailing only Dallas Love Field (Wright Amendment changes drove DAL's increase).
  
• Reversal of leakage issues that amounted to a million lost passengers per year as recent as three years ago.
  
• From 0% LCC participation to about 20% on a daily scheduled seat basis today.
  
• A clear plan for development for the next 20 years based on enplanement forecast scenarios.
  
• From, per USDOT publications, a fare premium of 43% to top destinations (earlier in the decade) and among the US's most expensive markets, to a fare discount of 1% in 4Q07.
  
• Transformation of the terminal complex from an aged facility with "no room at the inn" to a modern facility capable of supporting growth. On budget and on time. In other words, the airport, once a liability, became a true asset for Virginia's Capital Region.
  

Risk Taking

There are reasonable risks, and foolhardy ones. We try not expend precious resources (time, energy, money) on the latter. Airports certainly have limitations in this area, too numerous to list here.

Management Openings?

None that I am aware of presently, as the management team has been stable over the last several years.

Capacity at Nearby Facilities

I am sure that BWI, IAD, DCA, PHF, ORF & RDU would gladly make room for more customers, as would RIC. Over the weekend, driving between Richmond and DC, I was reminded again that RIC is not a suburban airport for the Greater Washington area. While we can trade passengers up and down I-95, the congestion issues are acute the closer you go to DC, and I think a big part of why some areas find RIC a more attractive alternative for many trips.

VANG

Relocation of the Virginia Air National Guard has created real estate for development. We hated to see the F-16s leave as the VANG crew started training for newer fighter jets, but the base site has been partially occupied by another organization, and will ultimately be valuable for relocation of some facilities and some new development. Locally, some merchants in the Sandston community probably have felt an impact. On the other side of the coin, though, nearby Ft. Lee was a winner with BRAC, and is growing at an amazing rate.

Martin Agency

We love the Martin Agency, and enjoy new creative for UPS, Geico, and Wal-Mart as much as anyone. However, the airport is pleased with the work of Barber Martin Advertising (traditional media) and RightMinds (web) for airport promotional/public information efforts. The airport is a smallish account for any mid-to-large sized agency.

Support Airlines that Have Invested in Richmond

Amen. Speaking of advertising, we ran a successful Fly 8 campaign (before Skybus' arrival and cessation, and well before Air Canada's return) last year, and encouraged travelers to support all carriers offering service from RIC, established carriers and new entrants alike. In return, we only ask that air carriers offer quality service and fares competitive with other airports in the region.

Sources of Funding

At a mid-sized airport such as RIC, funding sources are varied, and include federal, state, and local (airport operating revenue, not taxes; operationally, RIC is self sustaining) sources. In general, it has been a fundamental approach at RIC, dating back to pre-9/11 times, to reduce the burden to air carriers, and to try to develop stronger streams of non-airline revenue. In a mid-sized market, airlines generally do not make huge capital investments, but are more inclined to lease terminal space and support facilities, including jetways.

A Major Player

Airports are a reflection of the communities they serve. As the region grows, so will RIC.

That's a wrap for now. Thank you for the opportunity to address such a varied list of topics!

flack4ric

[Henry]

Thanks Flack...Good stuff.

[wrldcoupe4]

Wow... such a thorough response is much appreciated. It sounds like if we really want RIC to grow even more successfully, we need to heed the advice of Confucius!

[burt]

Thanks for the very comprehensive report, Flack.

The last couple of times I've departed RIC on Jet Blue's final flight of the day to JFK we were told that "conditions" at JFK were the cause of delays that, in one instance, ran to three hours. An employee said that delays on this particular flight, which sat at the jetway after on-time arrival from FLL, were not uncommon. I hope that situation has improved.

[flack4ric]

The last couple of times I've departed RIC on Jet Blue's final flight of the day to JFK we were told that "conditions" at JFK were the cause of delays that, in one instance, ran to three hours. An employee said that delays on this particular flight, which sat at the jetway after on-time arrival from FLL, were not uncommon. I hope that situation has improved.

While long-term resolution of PANYNJ congestion issues will take cooperation from many stakeholders, there is "terminal relief" on the horizon for JetBlue customers with the opening of the new T5 at JFK in early October. A Business Week article was posted on Yahoo! today at: http://biz.yahoo.com/bizwk/080812/aug2008i...24013.html?.v=1. It's good article if you can spare a couple of minutes.

I appreciate all the feedback, and thankful to have this forum available. The "regulars" here have done an amazing job of following RIC developments over the past few years, and I am always looking for good ideas to make the airport better for its customers.

flack4ric

Edited August 12, 2008 by flack4ric

[jbjust]

We're flying up to LGA on one of the new AirTran flights this weekend. I'll give a report when we get back.

[Shakman]

We're flying up to LGA on one of the new AirTran flights this weekend. I'll give a report when we get back.

Please do. I have never flown AirTran.

[eandslee]

I also have to say thank you to flack4ric for the long and thorough response. I think that the bottom line is that everyone here wants the airport the be successful and the more Richmond grows, the more RIC will grow. Perhaps I have channeled my frustration about growth of the airport toward the wrong entity. I knew this all along, but was reminded with flack's words: I wish Richmond as a whole had the attitude I spoke of in my previous post and not necessarily the airport alone. So I apologize for my hasty accusation.

I also want to express my wish for flack to hang around a while and check in to this site often. Questions arise about the airport quite often and would be nice to have and expert on the airport give us the REAL story on issues and news. At the same time, we

[eandslee]

I also wanted to ask flack...can we expect to see any changes to the airport website based upon any of the suggestions we've made here on this site? Just curious. Thanks!

[Twinz]

This is my first post on your forum but, having recently flown through RIC, I just wanted to congratulate you guys on a beautiful airport. I've been there before and I have to say the new terminal is a vast improvement and is truly world class. I also think the new website is great; professional and easy to navigate.

I also would like to echo sentiments expressed by Burt and Eandslee. I didn't know how to highlight your quotes but I agree with both. I don't think RIC needs to necessarily focus on being a hub. The current economic climate is hurting hubs such as Pittsburgh, Cincinnati, Memphis, etc. However, metro Richmond is large enough to be a focus city and it does seem that civic leaders need to grow in their thinking just as the city is growing. Salt Lake City is just one example of a city that is the same size as Richmond, yet has managed to carve out and support a facility that larger cities envy. I agree with Micomiles that a hub can actually hurt in some ways because the dominant airline discourages competition. However, by aggressively marketing RIC as an attractive alternative airport to the chaos of Dulles, for example, RIC could see an even greater increase in passenger numbers. It wasn't that long ago that RIC only dreamed of having 3 million passengers a year.

I think the fact that airlines continue to add flights in RIC, while they are dramatically cutting service in other cities, speaks volumes about the potential of this market. As Burt said, this is not the time to be complacent and go with the flow. Sorry if this was too long.