13 QUESTIONS WITH KEVIN KLEIN LOOKING UP IN 2023 WITH TVC’S KEVIN KLEIN

TCBN: So 2022 is complete. How was traffic at the airport?

Klein: We don’t have our final numbers just yet. But just based on initial TSA reports, it looks like it was our second best year ever.

TCBN: Nice! Second best behind…?

Klein: Behind last year, which was massive. But 2022 will turn out to be better than 2019, which was our best year previously.

TCBN: And where do we rank statewide? I know last year we had inched ahead of Flint to become the third busiest airport in the state.

Klein: It will be neck-and-neck with Flint, but we’re likely still number three. We’re definitely trending up, and they’re trending the other way

TCBN: I’m curious about the airlines. Are they becoming more and more alike in Traverse City, or more and more different? How has each airline’s presence changed here over time?

Klein: More and more alike. Several years ago, Delta had probably 50 percent market share here. Back when they were Northwest, it was probably 60 or 65 percent. Today, back to the July timeframe, United had 41 percent of our traffic, American had 31, Delta had

27, and the Allegiant had the rest. So the whole year will show everyone being pretty balanced.

TCBN: And do you prefer it that way?

Klein: I’d like to always see more seats in the market, but yes, good to have more competition here.

TCBN: I also wonder: How much of how these airlines grow here is due to your relationship with your contacts there and their familiarity with Traverse City versus just an overall corporate strategy and how aggressive a company is?

Klein: It’s how aggressive a corporation is. We have great relationships with all the airlines, but it’s about philosophy. Both American and United through the pandemic and coming out of it have been aggressive with seats and new markets. But Delta has followed their pattern of the economic downturns of 2008 and 2011, just being very conservative with their capacities; just kind of wanting to weather the storm. But now we’re starting to see some movement with Delta; they’re bringing back Boston [direct to TVC] May through Labor Day.

TCBN: So what are your goals at the airport for 2023?

Klein: Looking at our air service goals, one of the main goals is a suc - cessful kickoff of our fifth and newest airline, Sun Country.

TCBN: And what would success look like there?

Klein: I’d say load factors [percentage of seats full] of around 80-85 percent.

TCBN: Sun Country is a huge airline in Florida and Minneapolis and other markets, but mostly unknown here. How does that change?

Klein: People will see their fantastic rates, and they will also do some aggressive marketing to their frequent flyer program members. We will also be doing some of our own marketing to introduce the brand here.

TCBN: What else is a priority?

Klein: The second big one is with American, having the Dallas flights go from 76 seats per aircraft last year to a larger mainline aircraft handling 150 seats. And then with United to Denver, same thing; it was one regional and one mainline aircraft last year to this year having two mainline aircraft. Great news. And then Delta doing Boston, so that will be serviced by both Delta and American, which will make it very competitive.

TCBN: What about at the airport?

Klein: Our number one goal here is to begin work on the instrument land - ing system for runway 10, which should begin construction this year. The public will just notice some new antenna arrays put up, but this will eventually mean it will significantly reduce weather delays for flights when there are east winds. It could eventually impact about 100 flights a year, which is really significant.

TCBN: This has been on the drawing board for a while, right?

Klein: Yes, back in 2011, the FAA wanted to go completely to GPS systems and stopped installing new instrument landing systems. But we justified the need here, though we won’t be using federal grant dollars. This will come from the $4.50 PFC charge everyone pays on each ticket. All the airlines have approved it. It’s been a long time coming, but should bring some great benefits by end of 2023/early 2024.

TCBN: And what about the future terminal expansion? Anything happening there?

Klein: Yes, we will be expanding our terminal ramp itself, which we consider phase one of the new airport terminal construction. One reason we’re doing this is so we have ramp space during all the construction of the new terminal concourse, so we don’t have multiple planes waiting for gates. This will happen this summer, and is just the first step toward our eventual major airport terminal expansion.