Fort Smith airport officials working to educate public on efforts to add more routes

The odds are against adding new commercial air routes in the near future at the Fort Smith Regional Airport, but a consultant on Tuesday (May 9) told airport commissioners and staff that more could be done by the community to recruit new airlines.

Rick Lovell, managing director of Air Service Consulting for Middleton, Wisc.-based Mead & Hunt, told airport commissioners during the Tuesday study session that industry trends make it “more challenging” to recruit new service to smaller non-hub airports like Fort Smith.

His discussion with commissioners will be similar to a community presentation set for Wednesday (May 10), in the Bakery District in downtown Fort Smith. The meeting, which is open to the public, will begin at 5:30 p.m., and will be in the University of Arkansas at Fort Smith space in Suite D of the Bakery District.

Lovell said there are many factors that make it difficult for airlines, especially the legacy companies like American Airlines, Delta and United, to expand to new markets. The two primary inhibitors are shortages of pilots and crews, and high fuel prices. He said the estimate was that the airline industry had a shortage of 9,400 pilots in 2022. Lovell said fuel prices are lower now than in recent months, but is projected to rise again as summer travel demand increases.

Another factor making it difficult for airlines to add new routes is they are still recovering from financial losses during the COVID-19 pandemic. Even with federal help during the pandemic, the industry lost $47 billion in 2020, and somewhat recovered to an $8 billion gain in 2022.

The lack of pilots and crew along with financial issues resulted in the loss of a legacy carrier at 69 airports. Of those, Delta left 16 markets and American left 17. Delta in July 2020 stopped its flights between Atlanta and Fort Smith, leaving the American route to Dallas/Fort Worth as the only connection out of Fort Smith.

“It’s going to be a long, long time before you see them back in this market,” Lovell said of Delta.

Lovell and Fort Smith Regional Airport Director Michael Griffin said the key is to find unique ways to convince airlines – either the legacy carriers or low-cost carriers – to add a new destination in Fort Smith. The airport received a $1.145 million grant from the Small Community Air Service Development Program of the Federal Aviation Administration to recruit a route to Chicago or another northeastern market. The grant is good for 10 years.

The challenge is to compete with at least 400 U.S. airports also working to add new routes, Lovell said. And other states are combining state funds with federal grants to incentivize the airlines to add routes. For example, Indiana has a $10 million annual program, Jobs Ohio will offer up to $1 million – funded by a liquor tax – to airlines adding new routes, and the Stillwater Regional Airport used $4 million to keep American Airlines active at the airport. The funds are often used as “minimum revenue guarantees” that promise an airline the revenue it will need to be profitable with a certain route.

“A lot of communities are coming together and are throwing money at airlines,” Lovell said.

Lovell and Griffin said Fort Smith metro business and community leaders will need to consider a similar program, but the challenge is to be smart about how it is structured and funded. A “solid business case” has to be made using valid data so that any financial support is used on a route that will prove profitable without needing to use the guaranteed money.

Part of that data should include what is called “leakage,” Lovell said. In the Fort Smith metro catchment area, only 23% of residents use the Fort Smith airport, with many using the Northwest Arkansas National Airport (XNA). A goal could be to work with businesses and communities in the catchment area to boost the low percentage.

“Our goal is to start getting our story out there, to talk to the community, to explain to the community about what it will take (to get new routes),” Griffin said.

Griffin said Wednesday’s community meeting is just part of an ongoing effort that will include local governments and business organizations like chambers of commerce.