April 02--Increased flights to Orlando, Fla.; Fort Lauderdale, Fla.; Las Vegas, Nev.; and San Juan, Puerto Rico, could quickly draw more passengers to Atlantic City International Airport, according to the $3 million study commissioned by the Port Authority of New York and New Jersey last year.
The airport -- which has never turned a profit under South Jersey Transportation Authority management -- would have to add 6,900 flights over six years to break even. That significantly raises the number of flights per day from the average of 27 flights that currently pass through the airport, the study concludes.
The report culminates six months of discussions leading to the Port Authority's recent decision to consider a management agreement for the airport, located in Egg Harbor Township. Gov. Chris Christie has approved the takeover, which is expected to include an operations agreement with an option to purchase.
"Each of these destinations is presently served by Spirit Airlines and two (Orlando and Fort Lauderdale) have nonstop service from ACY," the study stated. "Increased frequency and capacity to these destinations may stem leakage and warrant additional flight activity at ACY. In addition, between four and six flights to one, or possibly two, hub cities may be justifiable at present."
The recommendations in the 58-page report by QED Airport & Aviation Consultants of Amelia Island, Fla., are based on a pre-existing 2011 analysis of air traffic completed by AvPORTS, the company contracted to run the airport's daily operations.
Statistics show that 287,501 people traveling to domestic destinations who are well-positioned to use Atlantic City International instead chose to use other airports, namely Philadelphia, Newark and LaGuardia, either because a destination wasn't offered or because another airport offered better fares or more convenient travel times.
Of those passengers who chose to use other airports, 45 percent were traveling to Orlando, Fort Lauderdale, Las Vegas or San Juan. In most cases, travelers in Atlantic City's "catchment area," which spans from Monmouth County south to Cape May County, instead chose to fly out of Philadelphia.
Miami, Los Angeles, Atlanta and Chicago followed as the next most frequent domestic destinations for travelers who could be using the South Jersey airport. Another 197,642 passengers traveling to international destinations were also lost to other airports. Atlantic City currently does not offer scheduled international service, but added the capacity to handle international flights in its recent $25 million expansion.
"It's a great facility that's just underperforming. We believe we can bring the expertise and the history that's needed there," Port Authority Deputy Executive Director Bill Baroni said recently.
In an interview with The Press of Atlantic City last week, Baroni also spoke of the importance of increasing the frequency and availability of flights to accommodate additional convention business in Atlantic City -- also one of Christie's goals for the state-run Tourism District. In addition to the Atlantic City Convention Center, Harrah's Atlantic City announced plans last year to construct a $134 million conference center intended to attract additional corporate meeting business.
The feasibility study, however, does not discuss convention business or identify markets that should be targeted to bring additional visitors to Atlantic City. The study warns of potential challenges but stresses opportunity for growth.
"The opportunities for growth depend on a variety of factors, many of which are beyond the control of the airport operators. The Port Authority, however, may be in the best position to exploit those opportunities as they arise," according to the study.
Kevin Rehmann, a spokesman for the South Jersey Transportation Authority, said he could address specific questions about the study as most officials, including the airport's director, had not yet received a copy as of Monday morning.
The Port Authority provided a copy of the study to The Press of Atlantic City.
The Port Authority and SJTA expect to have an operations agreement in place by July 1.
Contact Jennifer Bogdan:
609-272-7239
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Copyright 2013 - The Press of Atlantic City, Pleasantville, N.J.
