SAN ANTONIO — The San Antonio International Airport hopes new marketing incentives and fee waivers for airlines adding nonstop flights out of the Alamo City will accelerate the creation of new routes.
"The world of air service development has really transformed over the past few years as it becomes more aggressive throughout the country and the world, quite honestly," Chief Air Service Development Officer Brian Pratte said. "What we’re trying to do is make our incentive program a little more aggressive, a little more airline friendly so if they’re looking at options and weighing equal options, we may be able to step up our game just a little bit more."
San Antonio city council approved an updated incentive program for the airport Thursday. The new additions to the plan are aimed at helping airlines ramp up more quickly when they add a flight, saving time and creating the best possible conditions for consumer demand.
"The incentive program is two things- marketing dollars and fee waivers," Pratte said. "Marketing dollars are to be spent solely on marketing- traditional, digital, anything like that. The other part is fee waivers- it basically mitigates the cost associated with the ramp-up process. Like any other business, the first few months out of the gate, you have a ramp-up period- and that’s what we’d try to mitigate."
The incentives are meant for target cities including unserved markets, such as Boston; fastest-growing markets; and high-profile airports such as DCA, according to Pratte.
Mayor Ron Nirenberg says the target markets are based on data- some of which demonstrates where the city needs more connectivity for industries developing in San Antonio.
"We do have the targeted list," Mayor Nirenberg said. "Places like Washington DC because of the tremendous volume of military and medical professionals going back and forth from DC; the Bay Area, Boston, Chicago because of the medical community- so we do have those target cities."
Platte says the incentives may not entice an airline that wasn't even considering San Antonio to buy in- but it could accelerate the process for airlines that have the city on their lists.
"An airline decision to start a new route is a multi-million dollar decision," Pratte said. "Every one of those aircraft out there is $50 million on up. Incentives do not make or break their decision. At the end of the day, it’s got to be a profitable line of business.
The incentive does not make or break that deal- they’re not going to come here unless they believe it will forecast profitability. What it does is help them mitigate that out of the gate period and really try to promote their brand and awareness of the offer."
Mayor Nirenberg says there has been a significant local demand for more nonstop flights.
"It has been a weakness historically but we’ve seen tremendous growth in nonstop and direct air service over the past three years," Mayor Nirenberg said. "In fact, 2017, 2018 and 2019 have set consecutive records in passenger volume, but also the increase in the number of flights and new markets. We’re on a good track, but we have to continue the effort."
He says this incentive program is not based on using new taxpayer money.
"These air incentives are derived from the fees airlines pay the city when they land here and rent terminal space, so no general fund dollars or tax dollars [will be] used for incentivizing new flights- it’s all a result of increased momentum and air traffic," Mayor Nirenberg said.
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