Hometown airline emerges in Pa.s Lehigh Valley Airport deal

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WASHINGTON -- Eastern Pennsylvanias Lehigh Valley has a new hometown airline -- managed by an Atlanta tour operator that is chartering the aircraft from Pace Airlines. The airport is providing a call center, and Lehigh Valley is providing the name.

The Lehigh Valley Airport deal -- or something like it -- could portend the future for midsize and particularly smaller airports, which may become increasingly desperate for service as the legacy carriers pull out and steel themselves for battle in their bigger markets.

It is nothing new for such airports to offer incentives to attract service, but the Lehigh Valley Airport package raises the bar in its aggressiveness and creativity.

Lehigh Valley Airport made its arrangement with Aviation Advantage, an Atlanta company created to take advantage of what it believes will be a growing number of such opportunities.

In fact, Cary Evans, Aviation Advantages executive vice president and COO, said it soon will announce another deal with four airports -- three of them immediately and a fourth to be added a month later -- for a scheduled charter service branded as Southern Skyways.

Under the Lehigh Valley deal, the airport is providing some incentives that are typical, in kind if not amount, to create the regularly scheduled public charter service to Fort Lauderdale and St. Petersburg, Fla.

The service will begin March 24. Aviation Advantage is contracting aircraft, crews and maintenance from Winston-Salem, N.C.-based Pace Airlines, which specialized in charter services for sports teams, tour operators and corporate shuttles but may be best known for its flights as Hooters Air.

Southeast used to provide service from Lehigh Valley to Fort Lauderdale and St. Petersburg but ceased all of its operations at the end of November. No airline presently at the airport has filled in, and the airport has tried unsuccessfully for years to attract service from Southwest, which ultimately spurned it for Philadelphia.

The airport, like many, has offered incentives to attract more service.

For the Lehigh Valley Air service, the airport is contributing $460,000 for marketing efforts in the first year, including television and print advertising. It also waived landing fees for six months, saving Aviation Advantage about $100,000.

The airport provides its own ground handling service at reduced rates and jet fuel at cost, a benefit also being used by the airline TransMeridian.

But the new and unusual, if not unprecedented, twist is the reservations service.

The airport is spending about $30,000 for computers, furniture and other supplies, created a Web site and will staff the call center with as many as six employees per shift.

Lehigh Valley Air, and any other airlines that are interested, will be charged a fee for the service, but it is intended only to cover costs, said George Doughty, executive director of the Lehigh-Northampton Airport Authority.

Its not really a business we want to make a big profit on, Doughty said. But when people call Lehigh Valley Air, theyre talking to someone in the Lehigh Valley, not Bangladesh. Thats pretty cool.

That will help provide some local flavor to the airline, which took a hometown name for a reason.

Doughty said the airport asked Aviation Advantage to use the name of the region, figuring that will help market the service to the community.

Whats next? Doughty said he hopes the Lehigh Valley Air service will prove the viability of the two Florida markets and, perhaps, convince a scheduled service airline such as US Airways to add the route.

If that happens, he said, the Lehigh Valley Air service would be switched to another city, such as Fort Myers.  Other destinations also are possible.

As for the prospect of the Lehigh Valley Air model working at other airports, Doughty said he isnt sure. His airport had the advantage of some well-established routes and a 12-county area that provides a potential customer base of 3.6 million people.

The ultimate test of this will be how the consumer responds, said Howard Mann, senior manager of international and public affairs for Airports Council International-North America. Its going to be pretty interesting to see how it works out, Mann said.

To contact reporter Andrew Compart, send e-mail to [email protected].

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