When It Comes to Airports – Smaller Is Often Better

Customer service experts and air travelers rate New York City Airports as some of the worst in the nation. In a J.D. Power report from last September, La Guardia (LGA) ranks last in the country in terms of customer satisfaction at “large” airports. John F. Kennedy (JFK) and Newark Liberty International (EWR) take the bottom spots in the “mega” category. And when larger airports try to improve, as with current massive projects at JFK and LGA, construction frequently adds to the travel hassles for customers during the process.

To be fair, other mammoth airports around the country, especially in metro areas with multiple airports, don’t beat NYC by much. Even with improvements, large airports keep getting larger and more congested, while smaller, ‘secondary’ airports are stepping up to better serve customers. That’s why passengers tend to prefer smaller airports to their larger neighbors in the J.D. Power report.

These alternative airports also are attractive to innovative startup airlines looking to disrupt the traditional aviation business model. Serving convenient airports means less competition with major air carriers while still accessing metro area passengers. Service between secondary airports, and from secondary to primary airports, shows promise for sustainable profitability for a new breed of high-frills, low-cost carriers.

Smaller metro airports capitalize on this opportunity in a number of ways, using strategies that deliver on the competitive advantage that smaller can be better:

Smaller airports can offer airlines and customers cost benefits. At Long Island MacArthur Airport (ISP), for example, airlines on average pay 60% less to operate than at JFK, and 45% less than at LGA. This translates into real opportunity for new airlines looking to compete. And passengers typically pay less at secondary airports too. Fares to top 50 destinations from ISP, for instance, average 3% to 6% below those at LGA and JFK; add in the lower cost of parking, and the advantage increases to about 25%. Financially healthy smaller airports can be run with a business mindset that pleases both airlines and passengers.

Smaller is efficient for airlines. Alternative airports can operate with a level of efficiency, on the ground and in the air, that is nearly impossible for giant facilities to match. For example, for common destinations flown from ISP, JFK, and LGA, airlines must allow on average an additional 18.6 minutes (average extra taxi time plus average extra flight time) from JFK, and 17.7 minutes from LGA, compared to ISP.

Small preserves operational superiority. Congestion and lines are minimal. Airfield work can be done at night to minimize effects on airlines and customers.

Smaller can be high tech and high touch. Smaller airports are able to be more nimble when it comes to modernizing facilities and using evolving technology. This benefits the airlines and enhances the overall customer experience. Examples are improvements to transportation facilities that connect airports to rail lines and innovative providers such as Uber and Lyft. Secondary airports can also recognize the value and benefit of updating to digital signage and keeping customer convenience and technology as a priority in all new projects.

Smaller develops marketing partnerships. Since smaller airports are more agile and efficient, they have the flexibility to work closely and forge strong relationships with the business community and destination marketing organizations to increase awareness and demand for the airport. An example is ISP’s partnering with Discover Long Island on a cooperative marketing campaign in the Baltimore/Washington market that enables broader branding reach. These groups’ working together also provides marketplace insight that is valuable to new business and start-up airlines.

Smaller conveniently connects with transportation and rail. Since many smaller airports enjoy central metro locations, connecting rail service is another big plus and possibility. Saving customers time is a big asset that smaller airports can provide. Connecting to rail also reduces traffic congestion and gets travelers moving to and from airports quickly and efficiently. Train-to-plane initiatives, along with network transportation options, give smaller airports like ISP a competitive advantage.

Smaller brings amenities. Survey results at ISP show that customers appreciate new amenities that make their experience more enjoyable and productive. Offering close-in, affordable parking and free Wi-Fi are examples of how smaller airports can provide big benefits to customers.

Smaller seeks funding opportunities. Smaller airports can scan the environment for potential grants and funding just like the giant airports and can be more nimble at forming coalitions to secure support for airfield and terminal work at the local, state and federal level. Here in New York:

  • U.S. Senator Charles Schumer and State Senator Monica Martinez united with local leaders in February to urge FAA funding support for an Airport Improvement Project grant at ISP to fund a terminal expansion to accommodate current and expected traffic in its west concourse.
  • New York Governor Andrew Cuomo earlier this year announced $800,000 in New York State funding for improvements to ISP’s Ground Vehicle Transportation Center to the main terminal building. The project will better accommodate ground transport providers and further improve the customer experience at ISP.

These improvement projects upgrade facilities, give innovative airlines new opportunities, boost local economies and increase customer satisfaction. Together these strategies help smaller airports play a big role in improving air transportation and customer satisfaction. The result in New York, and elsewhere around the country, will be higher rankings and an overall better experience for airport customers.

Shelley LaRose-Arken is the Commissioner of Long Island MacArthur Airport.