Intrastate Commercial Air Service Committee Overview of Industry - PowerPoint PPT Presentation

Intrastate Commercial Air Service Committee Overview of Industry Trends and Boise’s Commercial Air Service Rebecca Hupp A.A.E. Boise Airport Director AUGUST 7, 2020

In the past 10 years, the top 4 US carriers have grown their share from 65% to 80%

Airlines are up-gauging due to significant cost savings

Boise’s total flights have decreased over the last 15 years, but seats are up 11% due to larger aircraft

Boise’s Nonstop Air Service • 18 nonstop destinations • 7 airlines • Nonstop service to 7 of the nation’s top 10 busiest airports • No commercial intrastate air service

Boise’s Passenger Statistics 25 Year Period 4,500,000 • 2020 passenger statistics forecasted 50% below 2019 4,000,000 • Fewest passengers predicted in over 25 years 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Boise’s Historic Commercial Intrastate Air Service Since 2000 • Lewiston • Served by Alaska, route discontinued in 2018 • Idaho Falls • Served by Horizon, route discontinued in 2010 • Pocatello • Served by Horizon, route discontinued in 2006

Deeper Look at Lewiston Service • Alaska served Boise-Lewiston through 2018 • The route typically was flown with a 76 seat, Q400 turbo- prop • The average load factor was 56% on the Boise-Lewiston service • Alaska’s load factor target is 85%

COVID-19 Has Impacted Passenger Travel • Passenger traffic across the United States fell 95% in April compared to the same period in 2019 • Nationwide passenger traffic is now around 72% below 2019 levels • Industry experts predict a 3-5 year recovery period to get back to 2019 traffic levels

Airlines Impacted By COVID-19 • Due to lack of demand, airlines reduced total flights by cutting routes and reducing frequencies • Airlines are reluctant to begin new service due to risk • Boise had service announced to Atlanta and Everette, both routes were cancelled before they started

Pursuing Intrastate Air Service • Small Community Air Service Development Grants • Conduct studies to better understand travel between Idaho cities • Airline Meetings • ACI-NA JumpStart • Airport Round Tables • Headquarter meetings