July 12--After seeing airfares rise and service drop at Tulsa International Airport during recent years, airport officials are trying to reverse the trend.
The Tulsa Airports Improvement Trust board unanimously approved a program Thursday that will provide marketing support to airlines and waive some fees for new or expanded service.
The incentives are aimed at attracting new and lower-cost flights.
"Many airports already offer these kinds of waivers of fees," said Tulsa Airports Director Jeff Mulder. "It's an incentive to get them into this space and expand our market."
The board also approved moving forward on a lease agreement with the city of Tulsa -- a 10-year lease with the option to renew for four 10-year periods. The current lease is 25 years with one 25-year renewal option.
Alexis Higgins, marketing and communications director for the airport, said the incentive program will be a big step in enticing new service for Tulsa.
"We took a strategic approach to how we'll address the air service deficiencies in our market," Higgins said.
The incentive program will provide $75,000 in marketing support to a new daily route to an unserved airport and waive 100 percent of landing fees for 18 months. For new carriers, it will waive 100 percent of the terminal space or shared use system fees.
For new daily service to an airport already connected to Tulsa, marketing support will be $10,000 and 50 percent of fees will be waived for 12 months.
For nondaily service with no fewer than two flights per week, the fee waivers will be the same for a new route but marketing support will decrease to $50,000. If a new airline comes in with a route already served at Tulsa, marketing support will be $10,000 with fees waived at 50 percent for six months.
Marketing support for the airlines and service will include press conferences, press releases and advertising, and cooperation with the Tulsa Metro Chamber to promote new service. Higgins said the airport will pay marketing services directly to the advertising firm, not to the airline.
The terminal space and shared use system will only be eligible for new airlines. The shared use system will be a ticket gate without any airline logos that could be used by any airline. The airport has not acquired the system, but would explore the possibilities if airlines requested it.
Board members said the incentive program seemed like a good way to expand service and make Tulsa International more competitive with regional airports.
Board member Jeff Stava said he hopes the incentives will spur more competition and help lower fares. Travelers "love our airport, but prices are a big deal," he said.
The incentives will last five years, with the board asking for the option to review its progress yearly.
Higgins said incentive programs are a recent development in the industry and have become more competitive at airports similar to Tulsa's.
"Five years ago, I don't think you saw these types of incentive programs," she said. Airlines are "looking for that city where they can maximize their revenue and minimize their risk."
The incentive program is effective immediately.
In other business, the board unanimously approved the lease agreement with the city of Tulsa and the annual service agreement with the city.
Mulder said the city was interested in a lease with a shorter term and that a 10-year lease with four 10-year lease renewal options was a good compromise.
The lease agreement could undergo minor revisions before it is fully adopted.
Airport incentive plan
New daily route: $75,000 in marketing support and waive 100 percent of landing fees for 18 months.
New carriers: Waive 100 percent of terminal space or shared use system fees.
Two or more new flights per week: Waive fees and $50,000 in marketing support.
New airline, existing non-daily route: $10,000 in marketing, fees 50 percent waived for six months.
Jerry Wofford 918-581-8310
Copyright 2013 - Tulsa World, Okla.
