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Springfield-Branson National Airport Aviation Director Brian Weiler stands before the airport’s first new hangar in six years, part of a $5.5 million hangar development.
Springfield-Branson National Airport Aviation Director Brian Weiler stands before the airport’s first new hangar in six years, part of a $5.5 million hangar development.

The State of Air: SGF passengers up 8.4%, BKG clinging to charter services

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On pace to break passenger records, the Springfield-Branson National Airport is having a banner year. Airport activity in the Queen City, however, contrasts declining passenger volumes and operating losses at Branson Airport.

In Springfield, the days of airlines cutting seats might be over as the number of total passengers flying in and out of its commercial airport January through October was up 8.4 percent to over 769,000 travelers.

In Branson, reported data for the first nine months of the private airport’s year reflects a change in focus to public charter service following last year’s loss of Denver-based Frontier Airlines and Dallas-based Southwest Airlines Co. (NYSE: LUV). As a result enplanements, or the number of boarding passengers, have fallen dramatically.

Through the end of September – the most recent data available – Branson Airport posted 12,729 enplanements, a 76.8 percent drop from 54,870 during the first three quarters of 2014.

By comparison, the Springfield airport reported 342,604 enplanements through September.

Springfield seats
Weiler said more total passengers flying in and out of Springfield was made possible by airlines bringing more capacity to the market. Through the first 10 months, there were nearly 434,000 available seats at the Springfield airport, up 9.5 percent during the same period in 2014.

“June, July, August and September were record months for us at the airport,” he said. “With October, that is 23 straight months of positive growth with passengers.”

Weiler believes additional seats show the national carriers have confidence in local air-travel demand.

“The airlines wouldn’t be putting those extra seats in here if we weren’t selling them,” he said. “I think they cut too far here in Springfield and realized that and started to put back more and more seats.”

In March, officials with the the general-aviation section of the airport known by its SGF service code cut the ribbon on a new $5.5 million hangar development. The work was funded by a Missouri Department of Transportation aviation grant.  

“The goal of that was to have readily available spots for companies to come in and lease ground and construct corporate hangars,” Weiler said, adding eight spots were made available for new hangars in an initial expansion phase. “Before we even cut the ribbon, five of those were leased. I think that does show there has been some demand.”

Weiler said no new lots have been leased since spring, but a couple potential tenants are in talks. He expects the eight slots to be filled in 2016.

Currently, general aviation’s first new airport hangar in over six years is in the works for Springfield-based private charter service OzAir.

“That’s a pretty big milestone for us,” Weiler said.

Also, a $500,000 renovation to the general-aviation terminal wrapped up in spring, and American Airlines service to Charlotte, N.C., started Nov. 5.

Branson woes
Branson sits in stark contrast to the Queen City. The transition to public charter service brought with it a September amendment to its funding agreement forbearance to extend the agreement through June 2016. Organizers originally established with bond trustees UMB Bank in April 2011 after defaulting on nearly $115 million in bonds secured to build the $148 million airport.   

In March, the Taney County Commission approved an agreement authorizing the use of $500,000 in risk abatement funds to help attract a major airline to Branson Airport, but it has yet to produce results.

Branson Airport Executive Director Jeff Bourk said the 6-year-old private airport still is providing valuable service to area customers. In 2015, the airport provided public charter service to Denver; Houston and Austin, Texas; Chicago; Cincinnati, Ohio; New Orleans; and to Cancun, Mexico, through New Orleans.

“Most of these routes were flown seasonally three or four times per week,” he said via email. “The service was promising, and we hope to expand on the service in 2016.”

The amended funding and forbearance agreement projected $1.8 million in operational losses between July and June 2016. This follows operational losses of $1.7 million for the first six months of 2015, and a loss of $423,000 in 2014, not including interest expenses and depreciation. With Southwest Airlines flying in 2013, the airport was in the black for a year, bringing in $3.9 million over expenses, but it had lost $21 million, not including interest expenses and depreciation, 2009-12, according to filings with the Municipal Securities Rulemaking Board.

The airport already has missed performance projections for September. BKG reported over $210,000 in negative cash flow for the month, worse than the projected negative cash flow of roughly $135,000. Enplanements also missed the mark by 25 percent, landing at 1,668 for September instead of a projected 2,218.

The challenges mounted. In October. Sanford, Fla.-based charter airline Orange Air announced it was discontinuing service in Branson, cutting its seasonal flight schedules short by around six weeks.

With the move, Orange Air no longer operates Branson AirExpress flights to Cincinnati, New Orleans and Cancun. However, Branson Airport officials quickly secured Elite Airways with flights to New Orleans and Cancun.

Moving forward
Where do the air hubs go from here?

While the highlights were many for SGF, Weiler said there still is room for improvement. Bourk was unavailable last week for further questions.

Freight service at SGF was down 4 percent through October based on 22.25 million pounds of freight entering and exiting the Springfield airport. Last year, 23.16 million pounds of freight passed through the Springfield facility.

“Air freight pretty much everywhere – nationally and internationally – has been soft, so we are following industry trends,” Weiler said.

Historically, freight volumes peaked in 2007 with 50.8 million pounds moved.

Over three years into the airport’s foreign trade zone, just two companies in southwest Missouri are taking advantage – Jardin Consumer Solutions in Neosho and General Dynamics in Carthage.

Weiler believes there is a misconception FTZ users are required to receive goods by air to avoid tariffs. To address the issue, the airport board voted earlier this year to rebrand the FTZ as the Southwest Missouri Foreign Trade Zone to give it broader appeal.

SGF expects to break a record this year, surpassing 900,000 passengers for the first time in airport history.

“We are expecting in the next three years to hit 1 million,” Weiler said.

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