Missouri Governor Jay Nixon (left) speaks at this morning's news conference. Robert Spence, Chairman of the Airport Board, looks on.

One year ago today the Airport opened its new passenger terminal and closed the old terminal at the west end of Kearney Street. This morning, at a joint news conference, we were pleased to welcome the newest entity to lease space in the old terminal: the Missouri Army and Air National Guard.

The guard will occupy 25,000 square feet in the south end of terminal. As previously announced, the online travel company Expedia will occupy 59,000 square feet in the north end. For all practical purposes, the old terminal is now fully occupied.

The guard lease will initially run through September of 2010. The guard will then have the option of renewing the lease annually through 2015. The total annual lease amount: $158,500.00.

The Expedia lease is initially for five years, with the option of five, 3-year extensions. The total annual lease amount: $450,760.00. Since federal aviation money largely paid for the old terminal, the Federal Aviation Administration had to approve both lease agreements.

The combined airport income from these two leases: $609,260.00.

These leases are very important to the Airport because they generate a revenue stream that is not related to aviation. This is especially important in today’s uncertain economy because the aviation industry is extremely volatile. Non-aviation related revenue helps make up the difference when airline revenue is down. In the big scheme of things, non-aviation related revenue can make it easier for the Airport to keep operating costs down for the airlines.

Steve blogs with these thoughts on our airport’s fantastic passenger numbers in May:

…”do you seriously believe that your new terminal, advertising campaign and lower fares by the airlines to fill seats, maybe this one a little, had anything to do with your increase. You know exactly what did it. Competition from the Branson Airport and their low fares are driving down your prices in the region. Why don’t you just admit that? The opening of the Branson Airport is now helping you so why don’t you embrace it.”

I understand your point-of-view Steve, but that’s not the way we see it. If fares were cheaper only in Springfield, then we would think the Branson airport had something to do with it. But that’s not what’s happening. The airlines have generally cut fares across the country in reaction to reduced advance sales caused by the recession.

We don’t expect to see the Springfield airlines react to what’s going on in Branson unless they think the Branson airlines are affecting their advance sales. It will take at least two or three financial quarters for the Springfield airlines to get a handle on that. Here’s how that process will work…

Branson passenger numbers will be tracked by the federal government.  As those numbers come out the Springfield airlines will look at them and try to figure out if the numbers are big enough to have any meaningful impact on their passenger numbers in Springfield.

As for the insinuation that the Springfield-Branson National Airport is afraid to admit that the Branson airport is forcing competition, nothing is further from the truth. In public meetings, and in print, we have repeatedly said that competition is the best thing that could happen. If the Branson airport brings down ticket prices in Springfield that’s a good thing. But as it stands right now, it’s too early to tell if that’s happening.

Amanda blogs:

“I was looking on MSU web site and they have a Mexican explore thing this May and they said it departs from Springfield Branson International Airport to Mexico city, is their going to be a flight from Springfield to Mexico City soon? If so do you think that would mean flights to other countries as well?”

Man oh man! I wish our airport was an “international” airport! Thanks for the thought Amanda! Seriously, though…

For some reason we’ve received several inquiries along these lines lately. There are no immediate plans for regularly scheduled international flights from Springfield. We do, on occasion, have international charter flights. When this occurs, the flight organizers have to make prearrangements with the United States Customs office in Springfield.

Mike wants answers about the airport being built in Taney County, south of Branson:

“If we are already loosing service to one city what does this mean next May when the new Branson airport opens for SGF? SGF officials have been down playing the success of the new Branson airport, but who has the real facts? They are expecting to serve 350-400,000 passengers in the first year. If vacation travel becomes a strong base for them, what if the larger carriers at SGF decide to service just on community? I read the link to the post regarding United airlines in how they are pulling out of over served markets and markets within “close” proximity. They could pull out and we would only be stuck with Allegiant and American eagle on turboprop service to St. Louis. Does SGF even have a plan for the worst case scenario?”

Mike! You’ve got a bunch of questions and thoughts there—hardly know where to start. Let’s start with one of the last things you said: “we’ll be stuck with American Eagle on turboprop service to St. Louis.” Wrong. The St. Louis service is on a jet.

You ask, “If we are already losing service to one city what does this mean next May when the new Branson airport opens for SGF?”

I have no idea—that airport isn’t finished and it apparently doesn’t have service. It’s hard to react to something that doesn’t exist.

You ask, “Who has the real facts?” What facts?

You seem to suggest that the large airlines will put out of the Springfield-Branson Airport and set-up shop in Taney County. That isn’t going to happen.

You ask if we have a plan “for the worst case scenario?” What scenario is that? Losing all service because of an airport in Taney County? That’s a worst case fantasy.

Randy wants to revisit the topic of changing the airport’s name:

“Once the new Branson airport is in place, why should Springfield continue to add “Branson” to the name of our airport. Especially if commercial carriers do actually offer service to their airport there are a large number of people in our community who think Springfield is big enough to have “its own” airport. I remember when Branson was added to the airport’s name, the argument was that it was to educate travelers that Springfield’s airport was the nearest available for Branson-bound vacationers. That will no longer be true. In your own blog you have argued against the Branson airport’s impact saying that persons traveling to Branson make up a relatively low percentage of all passengers through SGF.   If that’s true and commercial service begins to the new Branson airport, hasn’t the time come to restore a more proper name to Springfield’s national airport?”

You can find some of my thoughts on this subject in this old post.

SGFpilot wonders:

“I know the airport recently changed names to “national”, but have you heard anything about name changes to Springfield when the new Branson airport opens? Don’t know if this has been asked/answered yet.”

The question does come up occasionally, but it’s a good question to ask. It usually comes up within the context of, “”will the Springfield airport drop ‘Branson’ from its name once the Branson airport opens?”"

Branson was added to this airport’s name in the mid 1990s to help travel agents and customers figure out that there is an airport near Branson. Before the name change, travel agents would plug Branson into the computer and Kansas City and St. Louis would often pop up as the nearest airports! Travel agents tell me this still happens, but not nearly as much as it used to.

Even if the Branson airport gets air service, there will still be Branson bound people flying through this airport. So, bottom line, I don’t think it would make much business sense, or customer service sense, to drop Branson from the name.

Tony wants to know about passenger loads, ‘what flights leaving SGF are consistently full and which are not?’

I don’t have exact figures, but here’s a general snapshot:

• The overall load factor (percentage of full seats) at this airport, runs between 85% to 90%.
• The flights to Dallas, Chicago and Denver are frequently full.
• The average combined load factor for flights to Cincinnati, Atlanta, Memphis, Minneapolis and Detroit runs about 75%
• The average combined load factor for flights to Las Vegas, Orlando and Tampa/St. Petersburg, runs over 90%.
• I haven’t checked-up on St. Louis for a while. Need to investigate and report back.

Michael says, “I know that Branson was added to the airport name for marketing purposes and to produce less confusion with other Springfields probably , but I’ve always thought the Branson name was a slap in the face to Springfield and surrounding communities.  Any thought of changing the name to Ozarks National or something of the like to drop the Branson name but avoid the Springfield confusion?”

I have a hard time imagining a time when we would drop “Branson” from the airport’s name. As you say, it was added in the mid 1990s to help travel agents and customers figure out that there is an airport near Branson. Before the name change, travel agents would plug Branson into the computer and Kansas City and St. Louis would pop up as the nearest airports! I understand that still happens, but not nearly as much as it used to. Even if the Branson airport gets air service, there will still be Branson bound people flying through this airport. So, bottom line, I don’t think it would make much business sense, or customer service sense, to drop Branson from the name.

Reggie wants to know, “Is the airport or other powers to be actively seeking new airlines and destinations for our airport. If so, is any of that going on now, and how does that work. In other words, are we trying to lure additional service airlines and/or locations to our city at this time, and can you comment on what exactly is being done.”

Seeking new airlines and destinations is an on-going  process. Off the top of my head, I count at least eight airlines that we’ve talked to since the beginning of the year. When I say we “talked to them”, here’s what I mean: we’ve provided them with statistics and our rational for why they should provide new or additional service. We keep in touch. We treat these conversations like a business negotiation. Which is to say, we don’t talk about them publicly.

Occasionally (and I’m talking about the industry as whole), an airline calls out of the blue and wants to start new service. That happened here earlier this year. The airline even went as far as signing a ground handling agreement with the airport. Then they bumped their start date. They bumped it again and again. Will they eventually start service? I have no idea (grumble, grumble).

At last, it’s done–the Springfield-Branson National Airport has a new web site. To all of you–the customers of the airport–I apologize. This site is long overdue.

One of our new web features is this blog. It’s purpose is straight forward: we want to share information with you and we want to hear what you have to say. I’ll pass on news about the airlines and fares that could affect you. Got a question? Ask it. I’ll give a straight answer. There’s only one ground rule: civil conversation. On to the news at hand…

One of this airport’s best kept secrets is Allegiant Air. It’s a niche airline providing one thing: low cost fares between vacations destinations and small markets like Springfield-Branson. The airline provides service from this airport to Las Vegas, Orlando and St. Petersburg. Fares typically run about $200 per person round-trip. That’s the old news, here’s the new: Allegiant says it plans to add two more destination cities–Phoenix and Ft. Lauderdale. What the airline hasn’t said is whether our airport will get service to these new cities. Allegiant says it will announce what cities will get the new destinations by September 16.

Update on Monday, August 6, 2007 at 12:12PM by  Kent
Will Allegiant add flights to Tampa/St. Petersburg?  As in all decisions of this sort, it’s up to the airline. If Allegiant feels that its two current weeky flights are doing well, and if the airline feels there’s enough demand to fill another 150 seat airplane, and if the airline planners can fit the flight (s) into their weekly rotation, then, yes, Allegiant might add flights to Tampa. This is a long-winded way of saying that it’s a complicated decision making process the airline goes through. And I’ve only touched on three of the factors that go into the process. Hate to give you such a wishy-washy response, but that’s the way it works…

Update on Monday, August 6, 2007 at 12:28PM by  Kent
Does United still fly into SGF? Yes. The airline flies from SGF to Denver and Chicago O’Hare seven days a week. There are nine United flights a day, five to Chicago and four to Denver. Thanks Greg.