Lancaster, PA Airport Gets Big Offer from Continental

A Continental Airlines contractor is vying to take over airline service at Lancaster Airport, which would give travelers here up to three times as many destination choices than they have now.

And passengers would get to fly in larger, more comfortable aircraft and will still likely pay fares comparable to those at Harrisburg International Airport, said Lancaster Airport officials.

Airport officials said Friday that Smyrna, Tenn.-based RegionsAir is competing with Air Midwest, the present carrier, to offer three daily Continental Connections flights, starting Oct. 1, at the Manheim Township airport.

The company presented four options that involve three daily flights to Ohio's Cleveland Hopkins International Airport, New Jersey's Newark Liberty Airport or a combination of both.

Airport officials are endorsing one of the options, in which one flight would go to Cleveland and the other two to Newark, which is a major international airport.

Phoenix-based Air Midwest, the current carrier, has been offering service here since September 2004. That company contracts with U.S. Airways Express to offer three flights a day to and from Pittsburgh International Airport.

Pittsburgh has limited flights and "does not give local travelers the connections necessary for success,'' said Tom Baldrige, president of the Lancaster Chamber of Commerce & Industry. Baldrige is also the chairman of the six-year-old Lancaster Air Service Task Force, a group of business and community leaders whose aim is to grow the airport's commercial air service.

Though airport officials are clearly rallying behind the RegionsAir option, the final choice is up to the U.S. Department of Transportation. The department will make its decision sometime next month based on both companies' applications for federal grants they are requesting to offset operation costs.

Following the Sept. 11 terrorist attacks, which clobbered the airline industry, the local airport lost its then commercial carrier, Colgan Air. That company also contracted with U.S. Airways Express to offer three daily Pittsburgh flights, but was forced to close because of numerous financial troubles.

For the first time in the airport's more than half-century history, airport officials were forced to seek federal subsidies to lure a new carrier.

In 1978, the federal government started what is known as the Essential Air Service with revenue from airline ticket, fuel and maintenance taxes to subsidize small community airports.

Marvin E. Miller Jr., airport authority chairman, said that Lancaster County residents purchase almost 877,000 airline tickets a year, which generates some $30 million in taxes that go into federal coffers for the EAS program.

"It is only fair that Lancaster receives a return on that investment,'' he said.

Nonetheless, Baldrige said the airport's goal is to see commercial service here regain self-sufficiency without subsidies. He said he believes RegionsAir will be successful enough to do just that.

"We just want to make sure we are backing a proposal that best serves the community,'' Baldrige said.

Joyce Opp, the airport's director of marketing and finance, and Baldrige pointed out that Harrisburg International Airport does not offer service to Newark nor any other New York City-area airport, so there would be no duplication of services.

Opp said dealers at the Manheim Auto Auction have long pleaded for New York City connections

Air Midwest, which now serves the airport with $1.6 million in annual EAS subsidies, connects passengers to 55 cities and 170 flights from Pittsburgh, via 19-seater Beechcraft planes, which have no cabin service.

Air Midwest wants to continue offering service at the airport, and this time around is asking the department for $1.37 million in annual grants. This service would continue to connect Lancaster passengers to 55 cities and 170 daily flights from Pittsburgh.

Passenger loads with Air Midwest are averaging about 45 percent. Opp said she believes with RegionsAir, they would increase dramatically.

"Absolutely,'' she said.

For the airport-endorsed option, RegionsAir is applying for $1.97 million in grants, which is actually the least expensive of the four RegionsAir options.

Despite the $600,000 difference, airport officials say it will be worth it as it will draw more passengers.

This service would use 30-seat SAAB 340A planes with a flight attendant, restroom and full cabin service. The three flights would connect Lancaster travelers to more than 150 destinations and more than 400 flights a day.

"Due to the fact that RegionsAir will be opening a new market and using larger aircraft, their proposals call for a higher subsidy rate, the added benefits of this service are worth the additional funds and we intend to make that case to the DOT," authority chairman Miller said in a news release.

He said the Midwest service "is not a good value for the citizens of Lancaster County" because it is so limited.

Other task force members said they are also thrilled with the prospect of RegionsAir coming here.

"It would be awesome if we got it,'' said task force member Tom Shenk, manager of Ridgeway Travel in Lancaster. He said many of his clients would like to fly out of Lancaster, which offers free parking and proximity to home, particularly now with escalating gas prices. However, he said, with Air Midwest, "it is almost impossible unless you go to selected destinations."

If RegionsAir comes here "we will be able to accommodate everybody's request,'' he said.

"This is absolutely fantastic news,'' echoed task force member Shaun Balani, president of Lancaster-based Travel Time Agency, one of the region's largest travel agencies.

"In my opinion, Continental is one of the better airlines out there today and having three flights a day to their hubs is great news indeed,'' Balani said. "Newark especially has great flights, and a lot of them, so I have no doubt the load factors will be great."

Task force member Wendy Nagle, president and chief executive officer of the Pennsylvania Dutch Convention & Visitors Bureau, said with RegionsAir, the local airport could become "a gateway of sorts" for international visitors, who will be attracted here because of the convenience.

"This is pretty exciting for us,'' Nagle said. "We're looking at opportunities on how to connect to a larger world."

Task force officials on Friday sent letters to local business leaders asking them to help lobby the transportation department to choose the airport-endorsed options. In addition, they are also seeking the assistance of U.S. Sens. Arlen Specter and Rick Santorum, as well as U.S. Rep. Joseph Pitts, all of whom successfully intervened on behalf of the airport when the transportation department initially turned down the airport's requests for EAS grants in 2004.

"News of two bids is encouraging because it demonstrates an interest on behalf of commercial air carriers to provide service to the Lancaster region,'' said Scott J. Hoeflich, Specter's press secretary, in a statement e-mailed to the Sunday News. "Commercial air service is a tremendous asset to local residents because of the potential it provides for economic development and job creation."

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