Springfield is a good airline market, why are we underserved?

A couple of quick points from recent presentation from the Springfield Sangamon Growth Alliance showed how strong our economy is the Springfield MSA (Metropolitan Statistical Area, ie. all of Sangamon and Menard Counties).

Our unemployment rate is at 4.6% vs. the Illinois statewide unemployment rate of 5.5%.

Our average private sector hourly wage is $31.14 vs. Peoria at $30.70, Bloomington-Normal at $29.56, Champaign at $28.34 and Decatur at $25.

Higher wages with a similar cost of living means that there is more disposable income available in Springfield. So why are airlines choosing to add service in Peoria, Bloomington and Champaign over Springfield?

Good question! Many of their public entities along with private corporations and public citizens donate to a revenue guarantee fund. A revenue guarantee fund acts as a financial backstop to ensure that the airline providing the flights does not lose money in the first year. Most of these funds are never drawn as the airline is making money on the flights. Most of these contributions are small portions of the annual budget in the range of $20,000 to $50,000. If the funds aren’t used, they are given back to the donor after the first year. It shows the airlines that local government, employers and citizens are united in wanting more airline service for their community.

Airlines serve communities that want airline service, not necessarily those with large populations. Topeka, KS (Pop. 126K, MSA Pop. 233K) is located 51 miles from Kansas City International and has no flights. Yet, Santa Fe, NM (Pop. 93K, incl. in ABQ MSA) is located 66 miles from Albuquerque Airport and has 7 flights a day. Our community has supported flights to Dallas-Fort Worth in the recent past and will again. The question is, will you help elect someone who will push for for a guarantee fund to attract them?

Posted on 13 Oct 2024, 18:33 - Category: Campaign Platform