‘Dirt cheap’ fees not enough to lure airlines to BIA

BANGOR – The recent pullout of a major airline from Bangor International Airport and the high cost of flying from BIA have prompted some area travelers to blame the city for making it too expensive for airlines to operate out of Bangor.

But the airport says its fees are lower than most in the region and that in any event it has no say over ticket prices.

Despite American Eagle’s pullout from BIA in November, airport officials report landing fees that are less than half those of its closest competitor, Portland International Jetport. Manchester-Boston Regional Airport’s aircraft landing fees also are nearly double those of BIA. Bangor’s airport also reported significantly lower terminal fees than both, especially for common-use areas such as gate and baggage claim locations.

On average, airlines pay BIA only $3.06 per passenger in landing and terminal fees, according to Rebecca Hupp, BIA’s director.

“That’s dirt cheap,” said J. Brian O’Neill, deputy director of the Manchester airport. “You don’t find many airports that are more cost-effective than that.” At his airport, airlines pay $5.50 per passenger in fees.

BIA has come under public scrutiny after American Eagle, the regional American Airlines affiliate, pulled out of the airport in November. Company officials cited financial reasons for leaving and said the Bangor operation had been unprofitable for many years. The airline’s departure resulted in fewer planes flying to Boston and New York (Delta Airlines still flies the routes) and the loss of 89 local jobs.

In recent months, the Bangor Daily News has received numerous letters from area residents who are unhappy with expensive ticket prices at BIA.

Bangor’s population base is the largest reason why fares are higher and low-cost carriers are few, said Michael Boyd, president of The Boyd Group, an aviation consulting and forecasting firm based in Evergreen, Colo. Until there are more passengers at BIA, customers will pay extra for the convenience to fly from Bangor, he said last month.

“Why does Portland get more service? Simply put, it’s almost four times the size of the Bangor market. Portland can support larger aircraft, which means discounted seats,” said Boyd, who is a consultant for BIA.

Bangor’s landing fee is $1.05 per 1,000 pounds of an aircraft’s weight, Hupp said. At that rate, most airlines pay between $40 and $50 to land a 50-seat regional jet at BIA, she said.

Airports use landing fee revenues to maintain their airfields, said Hupp and other officials.

Terminal fees are assessed by the square foot, and prices vary on whether airlines are renting exclusive space, for office or ticket counter areas, or common-use areas, such as gates or baggage claim. At BIA, 20 percent of the common-use rental cost is distributed equally among its five carriers, and the remaining 80 percent is divided by an airline’s passenger market share at the airport.

When compared to New England airports and others of its size in the nation, BIA’s fees tend to be lower.

“The difference is we have other business segments to help offset cost,” Hupp said.

The airport gains revenues not only from the airlines, but also from leased property, such as the General Electric buildings and L.L. Bean call center, Hupp said. International flights, which are predominantly military troops departing or returning from overseas, bring in between $5 million and $6 million annually, City Manager Edward Barrett said earlier this week. The fact that the Maine Air National Guard shares expenses at the airport also provides significant savings, Hupp said, since the military provides fire protection and contributes to maintenance and operational costs.

Portland’s landing fee, at $2.42, has been higher recently because of a $30 million project completed in 2005, said Greg Hughes, marketing manager at the Portland jetport. The construction included a 440-foot extension of a runway and the installation of in-pavement runway lights. Early-morning fog historically has hindered flight departures, and the lights aid visibility, Hughes said.

“If [our fees] weren’t in line with competition, we for one wouldn’t be getting new airlines, and two, we would be hurting,” Hughes said, noting the arrival of low-cost carriers JetBlue Airways in May 2006 and AirTran Airways in June 2007.

BIA attracted its own low-cost carrier, Allegiant Air LLC, in November. Low airport costs are of the utmost importance to discount carriers when deciding in which airports to operate, said Tyri Squyres, an Allegiant spokeswoman.

“I cannot comment on the other airport fees in the region,” Squyres said in an e-mail, “but I will tell you that we most likely would never have considered [BIA] as a viable market if costs had not been low.”

When negotiating contracts with airlines at Manchester, O’Neill said fees are rarely discussed. Airports often fall victim to policy decisions at the corporate level in the name of higher profits, he said. Community needs are not considered when airlines decide to move into or pull out of an airport, according to O’Neill.

“Airlines don’t say, ‘This is part of economic viability of the community, they need air service,'” O’Neill said. “They don’t say they need to stay in business for the area.”

trobbins@bangordailynews.net

990-8074

BANGOR DAILY NEWS FILE PHOTO BY GABOR DEGRE

A plane approaches the runway at Bangor International Airport. Travelers have criticized the airport for the high cost of flying out of the central Maine hub, but the airport is defending its fees as comparatively low in the region.