Sununu Warns COVID-19 Relief Fallout Could Spell Trouble for Manchester Airport
Guidance arising from the federal COVID-19 relief law could siphon millions of dollars and thousands of passengers from Manchester's airport to Logan International Airport in Boston, Gov. Chris Sununu said in appeal to the Trump administration Tuesday.
In a letter to Transportation Secretary Elaine Chao, Sununu took issue with her Show Cause Order implementing the CARES Act that permits airlines to request that flights they now make to smaller airports be "consolidated" at single, "large hubs" such as Logan.
“While this may make sense in cities with multiple airports like New York, Chicago, Dallas, Houston and Los Angeles, this does not make sense in regions that have multiple airports, which is how the order views the airports in New Hampshire,” Sununu said.
Manchester-Boston Regional Airport Director Ted Kitchens said the policy change could be devastating for smaller airports.
"Short-term losses for smaller communities like us turn into long-term losses," Kitchens said. "Small hubs are always the last ones to recover from an aviation shock."
U.S. Sen. Jeanne Shaheen sent her own letter to Chao on Monday, as did fellow Democrat Sen. Maggie Hassan. Shaheen was one of the chief negotiators of part of the CARES Act, which includes nearly $400 billion in assistance to small business.
“I also urge you to carefully consider how airline proposals to consolidate service in a geographic region to a single airport could adversely impact smaller communities that happen to be near a large hub airport, including those in an adjacent state,” Shaheen wrote in her letter.
Both the Manchester airport and the Pease International Tradeport in Newington could be hurt by the latest Trump administration guidance, Sununu said.
“Any shift of capacity even if disguised as a temporary measure to offset losses due to COVID-19 will result in federal Airport Improvement Program dollars and local Passenger Facility Charges flowing out of New Hampshire and into Massachusetts,” Sununu said.
Kitchens said the current forecast is revenue for the airport should be off "$5 million-to-$6 million" for the current fiscal year ending June 30.
"With 9-11, you had a return to normal," Kitchens said. "With this one, I don’t know what the end is. Is it two months, six months, a year? The answer is different for each of those time periods. This airport has been through some lean times over the last 15 years. We have chewed as much fat off the bone as we could already,but we are still finding some places where we can trim some expenses."
Kitchens said if the consolidation policy can be altered or limited, the $60 billion for airports contained in the relief law would be welcome.
"This will help us get through this turbulent time and replace the lost revenues we are seeing at the airport," Kitchens said.
"I want to thank the governor and the senator for their support. Both, both along with the mayor and the entire delegation, have really risen up to the challenge."
The COVID-19 pandemic threw the global airline industry into an unprecedented crisis as airline bookings plummeted in response to regulation. Industry analysts reported U.S. commercial flights in the last week of March dropped 55 percent compared to the same period in 2019.
Before the COVID-19 crisis, Kitchens was optimistic about luring more passengers and had plans to end a 14-year losing streak of business at the airport.
The airport has always faced tough competition from Logan, which attracts about 80 percent of Manchester’s potential customers.
According to data released by Manchester-Boston Regional Airport, it saw a 6.5% decrease — 120,376 — in fliers in 2019 compared to the previous year, and was down 60 percent from its 2005 peak of 4.3 million. On a positive note, the airport had seen a 4.3% increase in cargo.
Just before the pandemic hit, American Airlines was the top carrier for departures, according to the airport, while Southwest, with larger aircraft, continued to have the most seats.
American passengers were up 9.3% year over year in 2019, while Southwest passengers were down 9.6%.
The four major carriers at Manchester, including Delta and United, had last winter scheduled 2% more flights than last year, which had led Kitchens to believe business could see an upturn in 2020.
"Right now air service development is now like economic development; we have to retain what we have," Kitchens summed up.
"We will worry about growing when we get to sunnier days, but I want to emphasize everyone from New Hampshire needs to fly with Manchester when we come out of this," Kitchens said.
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