My take: Groundhog Day and Avelo eying the Wilmington-New Castle Airport

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The other day, one of the many rankings  that find their way to our Email Inbox showed Delaware with the lowest average fares in the nation.

The ranking from a site known as CouponFollow was based on a long-term average that included rare periods when commercial jets flew in and out of  Wilmington-New Castle Airport (ILG).

During the 2000s, a number of airlines offered flights to the airport. With the exception of a Delta feeder flight to its  Atlanta hub, all were discount carriers that attempted to lure passengers with lower fares. 

The Delaware River and Bay Authority, which manages the airport for the New Castle County government, pumped in a couple of million dollars for improvements to the 1950s-style terminal and related facilities.

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 It also ended the popular free parking feature that came the first time Frontier Airlines came to the airport.

The DRBA operates the airport on a break-even basis and deals with added costs when an airline comes to town. Carriers rarely stick around long enough for federal reimbursement to make much of a difference.

The above-mentioned Frontier Airlines came to the airport twice in the past decade and in each case, departed abruptly.

The last instance was a half-hearted attempt to offer flights two or three times a week to Orlando. The occasional flights out of the Delaware airport came despite Frontier and other carriers offering discounted daily service from Philadelphia International Airport, less than an hour away.

Now, we see indications that 11-jet  start-up carrier Avelo wants to fly out of Wilmington. Signs point to Florida being the target market should it complete a deal with the DRBA.

It has the feel of the movie Groundhog Day where Pennsylvania weatherman Bill Murray finds himself in a time loop.

Alan Levin – who headed a county panel that studied the future of the airport and recommended taking bids for an operator when the River and Bay deal expires at mid-decade – sees a repeating fate for the latest discounter.

“While I wish Avelo well, I think history will be repeated, and commercial service will not remain long at New Castle Airport,” said Levin, a former state cabinet secretary and owner of the beloved Happy Harry’s drug store chain (now Walgreens).

My view is a little more optimistic than Alan’s. I believe the airport has a fighting chance of keeping passenger service if passenger service becomes a bigger priority.

The state’s bonding capacity could easily lead to the construction of a cost-effective private, charter and public aviation terminal with the ability to quickly convert to scheduled passenger service. 

Avelo is  focused on secondary airports and if adequately funded (it has been successful in finding investors), might be able to develop  a winning formula. Technology could also help if smaller fuel-efficient aircraft can operate profitably from small airports.

I agree with Alan that the short-term outlook is not bright, given fuel costs, less business travel, and other factors.

One big question mark is whether American Airlines will cut more flights from a Philadelphia hub that is less profitable than Charlotte. 

So far, fewer flights from  American and other carriers, along with reduced baggage and runway snarls, have modestly improved PHL’s reputation and led Frontier to expand service.

The outlook could improve long term,  if air travel demand grows.

For now, we can only hope that should Avelo enter the market; it breaks the past pattern of early exits in the only industry where millions of dollars in capital  literally flies flies away. – Doug Rainey, chief content officer.

 

 

 

 

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