Fort-wayne-international-airport

Focusing on the Future of Flight by Erica Hahn

 
Last Wednesday Katy and I attended the 3rd Annual Air Service Luncheon hosted by the Greater Fort Wayne Chamber of Commerce and the Fort Wayne – Allen County Airport Authority. William Swelbar, a Research Engineer in the Massachusetts Institute of Technology’s International Center for Air Transportation, was the key note speaker for the event. This was a great opportunity to learn more about the national issues impacting the airline industry and their influence on air service in Fort Wayne. It was very encouraging to see a room packed with community leaders who are actively engaged in supporting our efforts to further develop air service into the region’s primary airport.

 
Swelbar’s keynote address titled, “Airline Industry Structural Changes will force Air Service Strategy Changes,” focused on the opportunities and challenges that Fort Wayne International Airport (FWA) will experience in the years to come. According to Swelbar, 2000 was the peak year for air service with 680,000 men and women employed in the industry nationally and the predominating concern among industry experts was that fuel costs would exceed $0.81. Today fuel is now over the $3.00 mark and the air service industry only employs a little over 400,000 individuals. – Why?

 
The air service industry used to be a market share mentality industry, growing too big to be sustainable. With the downturns in the economy, both in 2001 and in 2008, and the sharp increase in fuel prices, the airlines were forced to shift to a profit share mentality. That being said, the air service industry is beginning to get healthier. In 2008 the industry lost $0.17 per every dollar raised, and in 2011 the industry actually gained $0.01 to every dollar. The entry and growth of low cost carriers is a major driver of this change, along with cost reduction and efficiency improvements.

 
What future trends will affect the airline industry? With the retirement of the baby boomers we are starting to experience a pilot shortage, which is most significantly impacting the regional jet sector as remaining pilots are seeking advancement in the mainline aircraft.  Whereas production standards for regional jets flown today average around 50 seats, regional jets of tomorrow will be produced with no less than 100 seats. Lastly, as 40% of the airports continually produce 97% of the demand, more consolidation needs to happen in order to move forward and for the industry to see an increase in profit.

 
So what does all of this mean for FWA? Fort Wayne International, although not quite there, is getting better. “Fort Wayne has promise because of the health of your strong manufacturing base” said Swelbar. Although Swelbar doesn’t believe that there is going to be much growth in the industry overall due to the increase in oil prices he believes that Fort Wayne can grow. “Take the opportunities that come your way. This is not an easy fix; it takes time. Fort Wayne has a good geographic position and you need to use that to your advantage.”

 
Erica Hahn is the Vision 2020 Coordinator for the Northeast Indiana Regional Partnership. She accepted her position in August 2011. She previously worked for Culver Military Academy where she was a Research and Administrative Assistant for their Development Office. She has a bachelor’s degree from Manchester College in Finance and Economics, and is currently pursuing her Masters.