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T.F. Green Airport Improvement Program - FEIS Chapters - PVD

T.F. Green Airport Improvement Program - FEIS Chapters - PVD

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T.F. <strong>Green</strong> <strong>Airport</strong> <strong>Improvement</strong> <strong>Program</strong>Environmental Impact Statement and Final Section 4(f) Evaluation2.2.1 Passenger and Aircraft ActivityLow cost carriers (LCCs) have had an influential role on the passenger demand at T.F. <strong>Green</strong> <strong>Airport</strong> and theNew England region. Between 1990 and 2004, air passenger traffic at T.F. <strong>Green</strong> <strong>Airport</strong> grew 132 percent from2.4 million passengers 27 in 1990 to 5.5 million in 2004. 28 After a decrease in aviation passenger demand nationwidedue to economic conditions in 2008-2009, refined long-term forecasts continue to anticipate modest growth in airpassenger traffic at T.F. <strong>Green</strong> <strong>Airport</strong> and the New England region. Air passenger demand at the <strong>Airport</strong> ispredicted to reach approximately 5.8 million passengers by 2020, which is consistent with FAA aviation forecastsavailable at the time of the <strong>FEIS</strong> analysis. 292.2.1.1 Role of Low Cost Carriers at T.F. <strong>Green</strong> <strong>Airport</strong>Southwest Airlines’ inauguration of LCC services from T.F. <strong>Green</strong> <strong>Airport</strong> in 1996 caused a period of increasedgrowth of air traffic. This initially resulted both from the capture of passengers who had previously usedLogan <strong>Airport</strong> and shifted to T.F. <strong>Green</strong> <strong>Airport</strong> to take advantage of the lower fares offered by the LCC, andthrough altogether new traffic generated by the so-called “Southwest effect”. The key concept of the “Southwesteffect” is that when a LCC enters a market, the market itself changes, and demand usually grows dramatically dueto the introduction of lower airfares that induces passenger demand for recreational and other discretionary travelas well as some additional business travel.However, the recent increase in LCC service, 30 coupled with new non-stop West Coast market offerings by LCCs atLogan <strong>Airport</strong>, and competition for legacy carriers 31 has caused shifts in air traffic from T.F. <strong>Green</strong> <strong>Airport</strong>. Forexample, some passengers are choosing to fly out of Logan <strong>Airport</strong> instead of T.F. <strong>Green</strong> <strong>Airport</strong> to take advantage ofnon-stop flights to specific markets, even though some of these passengers live within T.F. <strong>Green</strong> <strong>Airport</strong>’s primaryservice or catchment area. Also, in May 2011 Southwest Airlines finalized its acquisition of AirTran Airways, anotherLCC that provides service at Logan <strong>Airport</strong>. However, it is unclear at this time how the merger would affectSouthwest Airlines service at T.F. <strong>Green</strong> or Logan <strong>Airport</strong>s.While LCCs are very strong in today’s national market, legacy air carriers are restructuring and cutting costs so thattheir business models are likely to become more in line with those of the LCCs. The anticipated competition betweenthe legacy carriers and LCCs will add to the volatility of the market, influence low fares, and service choices. Federallaw allows air carriers’ access to commercial service markets of their choice, where appropriate facilities are available.Because the business models of the airlines are in constant flux, an airport must remain flexible in the types offacilities it provides to accommodate various aircraft types and routes for air carriers.2.2.1.2 ForecastsAviation activity forecasts are the basis for determining facility requirements and evaluation of potentialdevelopment alternatives. Forecasts are based on a variety of factors, including historical trends, examination ofexisting and anticipated economic, technological, and other operating considerations. They reflect an expertise andinformed context for projecting anticipated demand levels in order to conduct appropriate mid- and long-term27 The term “passengers” refers to enplaned (departing) and deplaned (arriving) passengers.28 T.F. <strong>Green</strong> <strong>Airport</strong> – Monthly <strong>Airport</strong> Passenger Activity Summary, Rhode Island <strong>Airport</strong> Corporation, December 2004.29 Draft Terminal Area Forecasts, FAA, 2010 (see Appendix E.1, Updated Forecast of Aviation Activity). 30 LCCs operating at Logan include Southwest Airlines, JetBlue, AirTran Airways, Spirit Airlines, and Virgin America.31 Legacy carriers are airlines that flew interstate routes prior to the Airline Deregulation Act of 1978.Chapter 2 – Purpose and Need 2-4 July 2011\\mawatr\ev\09228.00\reports\<strong>FEIS</strong>_Final_July_2011\<strong>PVD</strong>_CH02_P&N_JUL_2011.doc

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