Talks have intensified with a potential second commercial airline to fly out of Arnold Palmer Regional Airport in Unity, Westmoreland County officials said Thursday.
But those negotiations for expanded service face stiffening headwinds as the airport’s longtime carrier scales back its local footprint. The cuts come amid growing industry consolidation and economic realities that have left smaller, regional airports struggling to survive, according to a Virginia-based aviation expert.
“I don’t want to be a Debbie Downer, but it’s going to be incredibly difficult. The industry’s expectations have outgrown themselves, and it’s a hard reality and it’s not just Latrobe,” said aviation consultant William Swelbar.
Swelbar, a partner at Swelbar-Zhong Consulting, said the task ahead for Westmoreland County officials to ensure Palmer airport’s survival is daunting.
That effort intensified this week after local officials confirmed publicly that the airport’s lone commercial carrier was eliminating service to Orlando, Fla., which has served as a primary destination for travelers from Westmoreland County.
‘Deep negotiations’
Gabe Monzo, outgoing executive director of the county’s airport authority, confirmed Thursday substantial talks are underway with an unnamed carrier that would complement Spirit Airlines at the facility.
“We’re in deep negotiations, and the construction of our new terminal building enabled this,” Monzo said. He declined to reveal specifics about the talks or even name the airline with whom local officials and the authority’s private consultant have been engaged.
“We think maybe we could have this finalized in a couple of months,” Monzo said. “We’re asking for the world and hoping for the best.”
Since 2011, Spirit Airlines has served as the lone commercial carrier at the Palmer airport. It is halting flights from the Unity airport to Orlando in mid-April when it will begin seasonal service, five days a week, to Myrtle Beach, S.C.
The airline’s decision to cut flights has for now dimmed the outlook for the facility that is undergoing a $22 million expansion of its passenger terminal.
Spirit’s financial stability also has been clouded by its second bankruptcy, which the company is expected to emerge from later this year, as the budget carrier has retracted service throughout the country.
It still operates daily flights from Pittsburgh International Airport to Orlando, Myrtle Beach and Fort Lauderdale, Fla., accounting for 4.7% of the air traffic in January.
Those are the same three destinations Spirit served from Palmer airport just last year.
Competing with Pittsburgh
Swelbar said Pittsburgh International Airport could potentially hinder future growth of commercial travel from Westmoreland County. Less than a dozen major commercial carriers continue to operate throughout the United States, with most already occupying gates in Pittsburgh.
“The menu of carriers to choose from is so short, and they’re all flying from Pittsburgh. The question is: are you going to have to compete with Pittsburgh?” Swelbar said.
While Spirit’s financial outlook has impacted Palmer airport’s present and potentially its future, the industry as a whole ultimately could have a greater say in what’s ahead for commercial air travel locally.
“It’s a real case study in whether a carrier like Spirit can operate in a catchment area like this and still offer truly low fares,” Swelbar said. “They might not be able to offer those same fares and no longer compete against the other operators in Pittsburgh.”
County commitment
The county’s financial resources helped bring commercial air travel back to Westmoreland in 2011 after several years when no regularly scheduled flights departed from Palmer airport.
The county allocates about $2.5 million annually to the airport authority to subsidize Spirit operations there. The money is used to offset the airline’s personnel costs related to its reservations, ticket counter and baggage handling.
“I think it’s a necessary conversation to figure out an appropriate allocation would be in light of this announcement, but more importantly to strategize on how to solve the problem,” county Commissioner Ted Kopas said. “I think we’re all committed to making sure that airport continues to thrive, and I remain confident that the massive improvements that are going on there will pay long-term dividends.”
Commissioners Sean Kertes and Doug Chew said they have no immediate plans to reduce the county’s allocation.
“I do have faith in the current administration and the airport working toward this and hopefully have in the pocket another airline that would potentially come there,” Kertes said.
Officials said the terminal expansion project at the airport, slated to be completed this spring and ready for passengers in June, is a key factor in luring an additional carrier.
Maurice Haas, who will become the airport authority’s new executive director in May to replace the retiring Monzo, said space concerns at the old terminal were a primary hindrance in luring another carrier. The additional space and second passenger gate that also will be added this year has helped push talks with new carriers, he said.
“Our old terminal was built for 50- to 60-passenger aircraft,” Haas said. “The new one will have more space for passengers and a better flow.”
Passenger disappointment
Passengers waiting for their flight Thursday afternoon to Orlando said they were surprised and disappointed by news of Spirit’s service cuts in Westmoreland County.
“I don’t understand it,” said Jerry Spangler of Rockwood.
For Spangler, Arnold Palmer Regional Airport is about an hour’s drive from his home in southern Somerset County. Spangler said he flies frequently to the Orlando area to visit family who spend the winters in the Sunshine State.
“We’re going to miss it,” said Gerri Pawlikowsky of Mt. Pleasant Township. She likes the convenience of having an airport with flights to Florida just a few miles from home.
Sharon Sarver of Henry Clay Township in Fayette County said the loss of the local flight to Orlando might result in her changing future travel plans.
Sarver said she has another trip planned to Orlando from Arnold Palmer Regional on April 5, less than two weeks before the scheduled end of the service.
“We really like this airport,” Sarver said. “It is so convenient for us.”