Niagara District Airport (YCM)

Transcript

1. Niagara District Airport (YCM) Niagara-on-the-Lake, Ontario, Canada May 1, 2013
2. Overview for Today Q  Research overview Q  Conclusions Q  Air Service Options Logic Q  Airline and Airport Options Q  Airport Fare Comparisons Q  Buffalo and Billy Bishop Airports Q  Tour Operators Q  Engagement Q  Next Steps
3. Research Overview Q  Numerous interviews Q  Hospitality leaders Q  Tourism officials Q  Ground transportation owners Q  Attraction operators Q  Community officials Q  Airport management Q  Consumer survey Q  Extensive research Q  Data from the Buffalo International Niagara Airport (BUF) Q  US, Canadian and Niagara travel data
4. Conclusions Q  There is enough air passenger traffic to support commercial air service to YCM Q  The primary source of these new YCM passengers are currently using the BUF Q  This is the easiest target market to initiate service and expand flights to YCM. Q  These visitors tour numerous attractions, some visit other communities in the Ontario region but they all visit Niagara Q  A substantial number of the these visitors are on tour operator packages
5. Conclusions Q  Are approximately 530K annual US and Foreign visitors to Niagara who fly to Q  Buffalo International Q  Toronto Pearson Q  Billy Bishop Q  Chicago, New York and Washington DC are the best opportunities for YCM to have non-stop air service Q  Initially the majority of these passengers are not incremental visitors to the Niagara region
6. Conclusions Q  Over time there will be other passengers who would use the YCM Airport i.e. Q  Canadians traveling to the US and international locations Q  US and foreign free individual travelers (FIT) visiting the Niagara region Q  Toronto’s Billy Bishop Airport (YTZ) is an opportunity however it is: Q  More complex to develop Q  Requires cooperation Porter Air Q  Requires a smaller regional operator
7. Air Service Options Logic Q Cities Q Airports Q Airlines Q Aircraft Q Aircraft availability and associated opportunity costs Q Seasonality or year round
8. Airport and Airline Options (Handout) Q List of airports and airlines that were considered for service to YCM Q Service to BUF Q Aircraft type available in the region Q Customs and immigration facilities Q Service to Canada Q Hub, focus or spoke airport
9. Fare Comparisons This is our largest challenge (Handout) Q Samples of current available published fares for BUF, YTZ and YYZ Q The fares are quoted with a 7, 21 and 60 day advance purchase Q Canadian taxes and airport fees can put YCM flights at a disadvantage
10. BUF Airport Overview Q Steady growth with a softer downturn of passenger traffic during 2008-09 Q Passenger data (approximate and will vary from year to year) Q 2.60mm Arriving passengers annually Q There is a general trend of more passengers departing BUF Airport than arriving – less than 25K annually Q 1.463mm are US local residents, business traveler and visitors Q 837K are Canadian citizens with the majority traveling to leisure markets Q 300K are incremental visitors to the region
11. BUF Airport Q Passenger data (continued) Q The approximate 300K visitors are US and Foreign (outside of North America) going to Canada Q There is a relatively small percentage (undetermined at this time) of these visitors that tour Ontario and then depart via another airport Q Conversely, US and foreign visitors arriving in Toronto, tour the Niagara region and then cross the border to depart out of BUF Q There is a relationship between the BUF passenger traffic and the exchange rate of the Canadian and US dollar
13. BUF International O&D (Handout) Q Comparing 2012 FY O&D data to 3rd Q 2012 Q Comparing 3rd Q 2012 O&D data to 1st Q 2012 Q Flow of passengers from BUF to warm climate destinations in 1st Q Q Flow of passengers to BUF from major US cities in 3rd Q
14. Billy Bishop Airport and Porter Q The demand for domestic travel to Niagara is very difficult to quantify Q The service to YTZ from YCM is complex Q Porter controls approximate +85% of the available seats and is the only airline that has connecting service to all major eastern Canada’s cities Q Porter only has airline partnerships not code share agreements Q Air service to YTZ will require funding and support of a marketing program in spoke cities of Ottawa, Montreal and Quebec City
15. Billy Bishop Airport and Porter Q  Porter is expanding their reach in North America with the announcement of ordering the 30 Bombardier CS100 jet aircraft Q  Currently the only aircraft in the Porter’s fleet is the Bombardier Q400 with 70 seats Q  The Q400 aircraft is too large for service to YCM Q  In order for YCM to have service to YTZ, there needs to be Q  Code share agreement with Porter and a regional operator Q  An aircraft with 19 seats or less may work during most of the season Q  The initial service could be considered with an air taxi operation using a 10-15 seat aircraft
16. Tour Operators and BUF Q  Tour operators currently providing visitors to Niagara (via BUF and YYZ) are the most important players in this plan Q  They can reduce the risk, bring greater creditability to an airline proposal and facilitate as a bridge to a long term program Q  Advanced planning is key, 10-12 months Q  Willing to shift to YCM with less frequent service initially at a premium fare over BUF
17. Best Options and Next Steps Q Service to Chicago, New York or Washington DC are the best options to initiate YCM service Q The airline, frequency, airport, type of aircraft, service dates could be finalized in the next 30 days Q The “Fly2Niagara” Alliance needs get organized, contact tour operators, develop a funding plan and follow up with YCM Board
18. Timeline
19. Engagement Q Niagara Canada has unique visitor market Q Tour operators act as a “gate keeper” to the tour groups and FIT travelers – This is an advantage and opportunity for you! Q The tour operators we have interviewed like the YCM flight program, willing to help and want more information Q The hospitality and business leaders have the leverage to influence the tour operator’s pricing, itineraries, lodging rates and become engaged in supporting the air service initiative
20. Engagement Q To support the private sector, publicly funded tourism organizations generally can provide the most of the financial and marketing support Q Air service should be a community program that everyone can rally behind and a model for future community opportunities Q This will be a public/private partnership Q Everyone can support the effort and benefit from commercial air service to YCM