For a regional economy, airports aren’t simply hubs for travel. They’re channels for employment growth, urban development, higher wages, and ongoing innovation. Research shows that airport activity is positively correlated to regional wealth, productivity, and improved levels of artistic and cultural creativity.

It’s this clear connection between air travel and a prosperous community that made our team at Radius CoWork so excited to hear leaders from the Erie Regional Chamber and Growth Partnership (ERCGP) discuss the Erie Air Service Enhancement Plan & Fly Erie Fund. Through this plan and funding, we can not only stave off further air service decline in Erie, Pennsylvania but also improve it.

To better understand why this initiative is so critical to our city and county, we’ll look at the current status of The Erie International Airport (ERI) Tom Ridge Field. Then we’ll take a 30,000-foot view of air travel on a national scale. Finally, we’ll highlight the goals of the Enhancement Plan and the Fly Erie Fund and see how the ERCGP and Erie Regional Airport Authority (ERAA) will achieve them.

Flying Through Turbulent Times

National shortages of pilots, mechanics, and air traffic controllers, as well as increased costs, have forced airlines to focus on only the most profitable routes and cost-competitive markets. Since 2019, 321 airports (75%) have experienced air service reductions, and 16 (4.4%) have lost it completely, most of which were non-hub airports.

ERI is one of those 300+ airports that were impacted. As of June 2, 2023, it has one carrier left: American Airlines. Twice a day, a 50-seat regional jet takes off to Charlotte, North Carolina. Less than 20 years ago, Erie’s Airport was booming, boarding nearly 500 people a day.

With a lack of flights, ERI is losing over 250,000 passengers to neighboring airports in Buffalo, New York, Cleveland, Ohio, and Pittsburgh, Pennsylvania. It’s important to remember that this loss indirectly affects many other businesses aside from the airport, from hotels and restaurants to universities and manufacturers.

Small Airport. Big Challenge.

ERI faces a major challenge; its Cost per Enplaned Passenger (CPE) is sky-high. CPE is the sum of all airline costs (paid by the airline) to ERI, divided by the number of enplaned passengers. It includes airside usage charges, fuel flowage taxes, landing fees, terminal rentals, and a myriad of other airline payments.

By and large, the bigger the airport, the lower CPE it can give to airlines. It’s similar to how big-box stores can offer prices that boutique shops simply can’t because their volume is too low. Currently, ERI’s CPE is more than $20.00. Most legacy airlines look for a maximum CPE of $7.00 (nearly three times higher than we need to be). Ultimately, few major airlines are willing to fly into ERI at its current CPE, especially while dealing with staff shortages and increased expenses.

The Size Problem

It’s easy to blame all of this on the pandemic, but these problems have been brewing for years. Since 2009, regional (non-hub) airports have seen 31% fewer departures and 14.1% fewer routes. But airlines are realizing the bigger the plane, the bigger the profit. It’s why regional airports experienced a 16.3% increase in seats amid the decrease in departures and routes.

Currently, there are 650 active 50-seat jets in service across the nation. Each of them will be decommissioned by the end of 2024, meaning those remaining American Airlines planes flying into Erie will be parked permanently soon. The new capacity/cost floor is 76-seat airliners.

Nationally, there will be 31% more seats in 2023 than in 2009, but there will be 7.9% fewer departures, according to the ERCGP’s July presentation. This fact is so critical to note because pilots and crews are being prioritized to bigger planes and more profitable routes.

For our city and county, fewer flights (or worse, no flights) in and out of ERI mean less opportunity for growth, innovation, and development. Thankfully, there are ideas on how to change course.

Rerouting Erie’s Future

Despite the limited flight options, the demand for flying out of Erie is promising. Currently, ERI flights operate at close to a 90% load factor, compared to a national average of about 80%. When an air service exceeds 80%, airlines are more likely to add routes and more flights.

Accordingly, the problem isn’t demand; it’s supply. And, in order to increase supply, ERI needs to bridge the gap between its current CPE and what legacy airlines need to see. To do that, the ERCGP proposes the Fly Erie Fund, totaling $6.5 million.

$1.5 million will come from private and public-sector partnerships and $5 million from ERAA’s restricted cash reserves. The Fly Erie Fund would temporarily subsidize airline costs to help ERI reach a $7.00 CPE.

It will likely take three to five years for this fund to accomplish what it’s designed to do if it’s created. Within that time, the lowering CPE will likely attract new and legacy carriers (such as United, Delta, and American) with more seat volume and additional route options. With increased options comes more passengers.

It’s important to note that ERI doesn’t receive any operational support from the city, county, state, or federal government. The Fly Erie Fund would be the only supplemental financial support for air travel in Erie. But, the fund is just part of the equation.

In the meantime, ERCGP and ERAA are pursuing an ultra-low-cost carrier, Avelo, through the Erie Air Service Enhancement Plan. Should Avelo add flights to ERI, it will result in additional enplanements, demonstrating to legacy carriers that there is a substantial market here.

There is a symbiotic relationship between Airport hubs such as O’hare International Airport (ORD), Charlotte Douglas International Airport (CLT), and regional airports like ERI, that make it essential to gain traction with legacy and low-cost carriers. The ERCGP found that many hubs have over 50 percent of their departures tied to regional air service:

O’hare International Airport (57%)
Charlotte Douglas International Airport (54%)
Detroit Metropolitan Wayne County Airport (52%)
Philadelphia International Airport (53%)
Washington Dulles International Airport (61%)
Ronald Reagan Washington National Airport (52%)

As more carriers come on board, it’ll provide an opportunity for ERI to prove that it’s an essential regional partner.

What Can You Do?

Let’s start with the most basic initiative. If it’s within your means, fly out of Erie whenever possible. Heck, take a weekend trip to Charlotte to see what’s happening down south. As new flight options become available, take those too. We need to max out annual enplanements to show legacy carriers that there is demand.

Next, show your support for the Fly Erie Fund by sharing this post, the ERCGP’s content, and our local news outlets’ coverage. Speaking of new coverage: Whenever any positive press about Erie comes out, share it on social media. Airlines like to do business where there is relatively low discord, as it indicates a stable market.

Why It Matters

Even in a world full of Zoom and Teams meetings, daily flight options are still critical to businesses. Many fully remote workers will visit their employer’s headquarters or participate in company off-sites from time to time.

With more flight options, our local and regional workforce could take off from ERI instead of venturing to Cleveland, Buffalo, or Pittsburgh. But more flight options do much more than simply provide convenience. Connecting with the largest national and international markets is essential for building a thriving economy in Erie. Legacy carriers are the best options when it comes to daily flight options.

There are various studies that show how regional airports are economic generators. They equate to more jobs, increased income, and improved economic vitality. Businesses in nearly every sector depend on air travel to access global markets.

If you’re an Erie native, you likely know just how critical our tourism industry is to the well-being of our city and county. Every year, tourists generate over $1.2 billion for Erie, creating more than 15,000 jobs. The easier it is for people to visit our city and county, the better our economy will be. With record-high heat waves, catastrophic storms, and violent wildfires, we’ll likely see more people looking for more temperate weather to enjoy on vacation.

Having ERI as a portal to the rest of the world is also critical for our residence. It provides an opportunity to learn about new people, places, and things, which makes us think differently and bring more creative ideas back home.

While many workaholics believe a vacation will minimize their productivity and slow their ascent of the professional ladder, the exact opposite is true. People who took fewer than ten vacation days per year had a 34.6% likelihood of receiving a raise or bonus in three years. People who took over ten of their vacation days had a 65.4% chance of receiving a raise or bonus.

Researchers have also found that if you plan at least a month ahead to reduce stress, create social connections on a trip, go far from your work, and feel safe, 94% of vacations have a good ROI in terms of your energy and outlook upon returning to work.

As a community of entrepreneurs and remote workers, Radius believes the Fly Erie Fund is essential for the growth of Erie and its people. From the economic opportunities of connecting with other markets and having access to outside talent to the improved quality of life and cultural impact on our residents, having legacy carrier options at our airport is paramount.

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The Fly Erie Fund: Erie’s Ticket to a Better Future