New Commercial Airline Comes to Pease

listen:

The airline is Allegiant Air, based in Las Vegas.

The carrier, which has been in business since 1997, has just signed a deal to fly nonstop out of Pease to Orlando, Florida, beginning in October.

PDA Executive Director George Bald told the Board of Directors that Allegiant plans to fly four times weekly to the one destination.

(Bald 1) :14

“We’‘ll be assisting in helping to market our airport and their services. We see this as a real plus for Pease and a real plus for the community.

Allegiant describes itself as a low-fare air carrier, with an introductory fare of $39 one way, beginning October 28th.

Airline spokesperson Tyri Squires said the company felt the Seacoast region and surrounding areas could support such service.

(Squires) :10

“We generally go where there isn’t service already, and we say that we don’t do business. We really focus on the leisure traveler.

She said that the airline ruled out Manchester Airport because Florida service is provided by Southwest Airlines there.

And, Pan Am, or the remnants of it, renamed Boston-Maine Airways, doesn’t currently serve Florida at all from Pease.

PDA Director George Bald said that the airline will get financial incentives for using the Pease terminal.

(Bald 2) :14

“When a new airline would come to Pease, a lot of the fees are waived, like landing fees, to allow the airline to get established.

In fact, for 2 years, Allegiant will have all PDA service fees waived. But Bald says that the payoff will be for the region.

(Bald 3) :11

“Any activity helps the overall health of the airport. They’re going to be using the services of other people who are here, when they’re buying fuel and baggage handling and those type of things.”

Airline Analyst Mike Mooney, Senior Vice President of The Boyd Group, based in Colorado, says that it’s not unusual to waive fees to recruit new carriers.

(Mooney) :19

“The airline wants the new city to step up, and the very minimum is the waiving of landing fees and airport fees for the start up period, and that’s a minimum. In many cases, the airline wants risk abatement funding or revenue guarantees.”

And he says that the business model of Allegiant can be effective in underused airports like Pease.

(Mooney 2) :16

“That business model appears to be working for Allegiant in this very difficult current environment we have in the airline industry with jet fuel at record levels and lots of airlines chasing air travel dollars.”

Allegiant Air currently serves 23 markets from Las Vegas, and teams up with hotels to offer packages in the various destinations. The Company also owns 20 aircraft, and says it will fly 150-seat jets for the Pease to Orlando route.

For NHPR News, I'm Roger Wood in Portsmouth.