13 Questions (sponsored content

On The Runway with Kevin Klein

Nobody knows more about what’s new, changing, and how to find the best fares from northern Michigan than Cherry Capital Airport CEO Kevin Klein. We sat down with him to hear the inside scoop.

1 > So how is the region's airport doing? We are

hearing other airports are struggling.

Klein: We’re doing well, especially when I compare us to our peer airports and hearing horror stories of airports being down 40-50 percent in traffic. We are down compared to last year year-to-date and will end the year down around 15 percent, which would be our third best year ever. With all that said we are the 3rd largest airport in the State for passenger traffic.

2 > And is that because 2021 was such a monster

year or because of inflation and macroeconomic conditions?

Klein: It’s a little of both. Our area was very much “open" during COVID for outdoor activities. But now airlines are facing staff and pilot shortages, inflation, and reduced schedules.

3 > But there’s still good news in there? Klein: Great news! TVC, has just announced new service beginning June 16, 2023, with Sun Country Airlines serving Minneapolis Saint Paul, MN (MSP). We are seeing expanding service opportunities that many airports have not experienced. Sun Country Airlines is a new breed of hybrid low-cost air carrier.

4 > You had mentioned other airports hurting. Klein: The U.P. airports, Alpena, and Pellston are challenged with cutbacks. Airline economics of a 50-seat jet making it, are going to be tough for small communities. Smaller communities are going to have to look at if they can fill 76-seat jets in the future.

5 > What about elsewhere? Your peer airports

beyond just our immediate neighbors?

Klein: For the Great Lakes region, traffic is down in seats July 2022 vs July 2019 about 10 percent. For our peer airports, Madison down 20 percent, Dayton down 40 percent, Green Bay down 20 percent and Lansing down almost 50 percent in seats. So, I am thankful here.

6 > Sounds like United Airlines continues to be the

most aggressive airline. Is that what you’re seeing?

Klein: Our future schedules are a terrific way to look at that, into December for United from Chicago, we see mainline aircraft we haven’t seen in previous winters. The Airbus 319 and on some weekends closer to the holiday the larger 737-800 fits into that schedule. So, they are looking to take advantage of demand. 10 > And what’s happening at the airport itself? Klein: On the general aviation side there’s a new hangar being built by AvFlight. That’s a $5 million investment, that’s exciting. We just removed our 1964 general aviation terminal. We hope to break ground next summer on expanding our air carrier ramp as we head toward our main terminal expansion.

11 > Back to the airlines and fares, wondering what

you’re seeing for spring break?

7 > In terms of the industry changing, I’m guessing

your forecasts are changing even every 90 days?

Klein: More like every 20 minutes! With the new Sun Country service combined with American announcing they’ll be flying mainline aircraft JuneAugust for Dallas we are changing our outlook by the minute. We are now starting to see the business traveler return. We completed a survey in August that showed we are 70 percent leisure and 30 percent business. Our best was 60/40, so the business traveler is returning.

8 > And overall, the biggest industry issues remain

cost and staffing?

Klein: The items everyone is watching are staffing, pilot shortages, aircraft availability, economics, and fuel prices. Keep in mind that prior to COVID, a new pilot for regional flights would be making $35,000-$45,000 per year. Now with the shortages that’s more like $80,000-$100,000.

9 > Good for them but are fares just going to keep

rising?

Klein: It’s all starting to shake out. As you see demand increase and capacity return and newer aircraft coming online, you’ll see the airline economics work out and prices stabilize. With Allegiant and Sun Country both low-cost carriers, fares will be competitive. Klein: This is where Allegiant Air comes into play. They have increased capacity on the Florida routes in March and April. Allegiant has also brought back Phoenix for March through August. Prices are good, but we are already seeing them rise. We recommend getting your tickets soon!

12 > Anything else, specific to business travelers? Klein: Our biggest push now is getting the business traveler back and flying by finding out what are they doing differently. Have they changed cities, do they have new facilities or new customers? One of the things we did on our web site was add a form on the business travel page. We’d love passengers to fill that out to tell us what’s changed if anything so we can tell the airlines. Please go to https://tvcairport. com/tvc-business-travel/ and let us know what is new. If you complete the form by November 30th, you will be entered into a drawing for a $500 travel certificate.

13 > Talk about Cherry Capital being able to serve

the entire region and not just Traverse City.

Klein: With larger jets and more seats and amenities. The airlines are really putting a bigger emphasis on those airports that can prove growth, and we’ve demonstrated that. So that’s helping travelers coming our region have more travel options and to save money.