CHAPTER 6

Case Examples

In an effort to better understand practices in use at airports to onboard new airlines, 12 airports were contacted via phone as part of this project. The phone interviews with airport staff resulted in 12 case examples highlighting unique airport’s experiences related to this topic. Quotes presented in each case example highlight specific comments shared by airport staff. Table 1 presents this list of airports, including the airport ID, hub size, location and sponsor.

Table 1. Case examples.

Case Example 1: Nashville International

Interviewee: J. Powell, Assistant Vice President of Airline Affairs & Air Service Development
All quoted items are from phone communication with J. Powell on January 16, 2024.

Nashville International Airport (BNA) has an active airline onboarding program, having onboarded six passenger airlines in the past 3 years (i.e., Avelo, Breeze, Flair, Swoop, New Pacific,

and Silver). According to the Assistant Vice President of Airline Affairs & Air Service Development, even with this level of airline onboarding, his office consists of only three employees, as well as a contract air service development consultant. That being said, “airline onboarding requires an inter-departmental effort.”

When an airline announces plans to begin service at BNA, a kick-off meeting is held that includes Airline Affairs, Operations, IT, and Marketing. Initially, Airline Affairs handles airline agreements (e.g., operating agreements and space lease agreements; insurance; and ground handlers, fuel handlers, and aircraft deicing vendors). Operations considers the aircraft type, schedule, and the need for GSE staging. Although most new airlines do not perform their own ground handling, if they are, then more new personnel will need to be badged, which can require additional time. IT often requires the longest lead time to ensure that the new airline is integrated into the airport’s common-use system. Additionally, months may be required for a telecommunications company to run a new circuit to the airport for the airline. Marketing develops press releases and plans promotional efforts to support the new airline’s launch.

When asked to share lessons learned, the Assistant Vice President of Airline Affairs & Air Service Development said “IT needs to be involved from day one. If not, you’ll have airline personnel using company laptops because they won’t be integrated into the airport’s common use system.” He also reiterated the importance of the Marketing department in both promoting the new airline and retaining the new airline. “Make it a big deal! Getting service is great. Keeping service is even better.” Last, it is important to have sufficient lead time to perform all required airline onboarding tasks. “For domestic carriers, a lead time of 2-4 months is typical, but with international carriers, we may need 9 months.”

Case Example 2: Charlotte Douglas International

Interviewees: K. Price, Airline Affairs Manager and M. DePeder, Airline Leasing Coordinator
All quoted items are from phone communication with K. Price and M. DePeder on January 19, 2024.

Having onboarded Sun Country Airlines and Spirit Airlines at Charlotte Douglas International Airport (CLT) during the past few years, onboarding new airlines happens infrequently at CLT due to space and gate constraints. American Airlines is the dominant carrier at CLT with almost 90% market share, but CLT will open a 10-gate expansion in 2024, creating more space to accommodate additional airlines.

Currently, partly due to space constraints, CLT does not have a formal Air Service Development team; rather, airlines typically approach the airport if they are interested in beginning service. Once contacted by an airline intending to begin service, airport staff first discuss the necessary operating agreement with airline staff. The airline’s schedule, including type of aircraft, are then discussed, which informs personnel of gate needs, etc. Above- and below-wing handlers are also discussed with airline personnel. If the airline chooses a handler not currently at the airport, they are informed of the additional time needed to process the new handler, including agreements and Security Identification Display Area (SIDA) badging for employees. Depending on the lead time the airline provides, this could delay the planned first flight in a worse-case scenario.

When discussing lessons learned, the Airline Affairs Manager shared that a checklist is key. “There are so many little pieces to onboarding, that some may be missed without a proper checklist.” Additionally, incentives should be considered before an airline expresses interest in serving an airport. “Airlines are concerned about CPE (costs per enplane passenger) and total airport costs as well as offered incentives must be taken into consideration.”

Case Example 3: San Jose International

Interviewee: R. Bond, Deputy Director of Operations
All quotes are from personal communication with R. Bond on January 4, 2024.

San Jose International Airport (SJC) has recently welcomed Zip Air and Spirit Airlines. Each of these airlines had different needs and expectations. From an airport perspective, however, the process of onboarding a new airline is consistent, regardless of the airline. Some onboarding functions may be contracted out, such as IT for the airlines through Amadeus. Most onboarding functions are handled by SJC staff.

Traditionally, SJC requires 6 months advance notice from a new carrier prior to the scheduled inaugural flight. During these 6 months, numerous airport departments are busy at work behind the scenes preparing for operations by the new airline. The airport property representative assumes the primary role in airline onboarding, with departments such as Finance, Facilities/Maintenance, Marketing, Operations, and Planning/Engineering also actively involved with airline onboarding. “It is an airport-wide effort to bring a new airline on board.”

For the airport that is planning to secure their first airline service, the SJC Deputy Director of Operations recommends first determining the airline’s proposed aircraft type, flight schedule, and the degree of TSA and Customs required. Also, needed office space, gate space, insurance, performance bond and other administrative requirements will need to be determined.

Lessons learned include the following:

• There should be a name and title or group for every aspect of onboarding. Responsibility is key.
• In a highly collaborative airport environment where each office is eager to onboard the new airline, pause to ensure that efforts are not duplicated.
• How much lead time do we need? Make sure we are making progress each day to meet our deadlines.
• Properly identify third-party companies (such as ground handlers and fuelers) that can then be provided to the new airline to coordinate their services and needs.

“Onboarding does not end on the day of the inaugural flight.” Once the airline begins service, airport staff must ensure that the airline’s needs are tended to, including resolving door alarms, spills, and jetbridge malfunctions. According to the SJC Deputy Director of Operations, “All of us at the airport are involved to make sure the airline has what it needs to succeed in this market.” It benefits no one when a new airline withdraws from the market. See Appendix C for a sample checklist for airline onboarding at SJC.

Case Example 4: Jacksonville International

Interviewee: S. McMain, Senior Properties Administrator
All quotes are from personal communication with S. McMain on January 19, 2024.

Having welcomed both Breeze Airways as a signatory and Sun County Airlines as a non-signatory airline during 2022, Jacksonville International Airport (JAX) has a seasoned staff with a knowledge of Air Service Development and the needs of new entrant airlines. Departments such as Marketing and Air Service Development, Operations, Facilities, IT, Badging and Security, and Business Development collaboratively meet with airline personnel, scheduling necessary airline site visits and holding weekly calls to ensure successful airline onboarding.

Once Marketing and Air Service Development announces to airport staff that a new airline intends to begin service, Business Development staff reach out to the Airport Affairs staff of the airline to begin discussing agreements, insurance, accounts payable contacts, and so forth. Airline staff are invited to visit the airport to tour the facilities and discuss specific requirements.

This enables airline staff to meet with staff in other airport departments. In this way, all airport departments will be united in onboarding the new airline.

In offering words of wisdom to other airports considering onboarding a new airline, the Senior Properties Administrator suggests the following:

• Request as much lead time from the airline as possible.
• Get internal and external team members involved sooner rather than later.
• The airline may be onboarding at multiple airports simultaneously.
• Know your agreement. Know what you can and cannot do.
• Make sure airline incentives meet FAA guidelines and are effective. Establish an incentive policy well beforehand.

“With a proper checklist and regular communication with airline personnel, successful airline onboarding will be ensured.”

Case Example 5: Southwest Florida International

Interviewee: C. Obermeier, Director of Air Service Development
All quotes are from personal communication with C. Obermeier on January 22, 2024.

Located in Fort Meyers, Florida, Southwest Florida International Airport (RSW) is owned and operated by the Lee County Port Authority. According to the RSW Director of Air Service Development, RSW has welcomed Breeze Airways, Avelo Airlines, Porter Airlines, and Lynx Air in the past 3 years. Such an active airline onboarding environment has resulted in greater efficiencies for RSW. For instance, “We have one point of contact. Things can get rather confusing for the airline if multiple airport staff serve as points of contact.”

The primary departments supporting airline onboarding are Properties (non-signatory agreement), Finance (3 months of charges for deposit), Risk (insurance), and Operations (e.g., gates and ramp space). Once the carrier sends a team to the airport for a site visit and onboarding discussions, the IT team can meet with the carrier to discuss common use, including baggage claim, bag makeup, ticket counters, and so forth. The airport uses a checklist to ensure that all onboarding tasks are completed. Bi-weekly meetings are held with airline personnel throughout the onboarding experience leading to the inaugural flight.

When sharing lessons learned, the Director of Air Service Development explains the impetus for creating a single point of contact for the airport. “Before we had a single point of contact, balls were sometimes dropped, and complaints were received from airline network planners due to confusion. We had to do better.” Additionally, it is important for airport staff to consider if the current facilities can accommodate a new airline. “Space-constrained airports should honestly assess their ability to accommodate a new carrier.” Further, “it is important to continue developing relationships with airline personnel. You want to meet the airline C-suite leadership. Finally, new airline service will benefit the entire community.” As a result, “It is important to work with community stakeholders, incumbent airline general managers, and airport-based federal agencies to prepare for service by the new airline.”

Case Example 6: Glacier Park International

Interviewee: J. Donofiro, Director of Finance
All quotes are from personal communication with J. Donofiro on January 19, 2024.

Airlines including Allegiant Air, Sun Country Airlines, and Avelo Airlines typically provide notice of intent to start service to the Airport Director or Deputy Director at Glacier Park

International Airport (GPI). Initial discussions between the airline and Airport Director and Deputy Director take place to determine airside and terminal needs (e.g., gate availability, aircraft size, and operating lease space).

If operational needs can be met, the next step for the airline is procuring ground-handling services. In some cases, this will be the FBO (fixed-base operator) who can handle smaller airlines, such as Sun Country Airlines and Avelo Airlines, whereas United Airlines and Delta Air Lines use larger national companies to service aircraft operations.

IT needs are also an important discussion. Now that GPI is installing common use, the IT activity related to airline onboarding is transitioning from airline-specific requirements to more airport-specific requirements to accommodate all airlines in a more efficient system. This is changing some aspects of IT-related airline onboarding.

Next, the Airport Director and Director of Finance begin contract discussions with the airline. This includes whether the airline will operate under a signatory or non-signatory airline agreement, insurance requirements, and GPI operating rules and regulations. The Director of Finance clarifies the airport’s current rates and charges and monthly reporting requirements. Ensure that all appropriate contacts for the new airline are provided, including the Commercial Real Estate Airport Affairs Manager, accounts payable department, and local station manager. A signed agreement triggers activity by numerous staff in airport departments, including Administration, Operations, Facilities/Maintenance, ARFF, and IT.

GPI has highly seasonal airline traffic, with both winter ski season and summer tourist season creating peaks in airline traffic. These seasons often create demand for low-cost carriers to serve GPI. According to the Airport Director of Finance, “Low-cost carriers are quite similar in their expectations and requirements, as well as the airline onboarding experience.”

For an airport anticipating onboarding their first airline, the Airport Director of Finance provides some anticipated first steps:

1. Properly explain airline rates and charges under signatory and non-signatory agreements.
2. Provide airline operating and space agreements for airline review.
3. Discuss insurance requirements.
4. Determine airline accounting contacts.
5. Determine airline station manager and operations contacts.
6. Ensure a signed agreement is in place prior to operation of the new airline.

“Keep in mind that the airline regional manager may not be the best point of contact. Get to know the local airline station manager and airline accounts payable personnel. This will produce long-term benefits.”

Case Example 7: Phoenix-Mesa Gateway

Interviewee: M. EvanSon, Director of Security, Operations & Maintenance
All quotes are from personal communication with M. EvanSon on January 9, 2024)

The Phoenix-Mesa Gateway Airport (IWA) has welcomed Sun Country Airlines and Avelo Airlines within the past 3 years. In response to seasonal airline service (commonly due to the summer heat in the greater Phoenix area), airport staff perform a mini onboarding prior to commencing new seasonal service each year. In essence, the same airline may be onboarded, even in an abbreviated fashion, annually.

With 20 years of airline industry experience, the Airport’s Director of Security, Operations & Maintenance, explains there are four main phases to airline onboarding:

1. Air Service and Business Development. Occurs 3 years to 3 months prior to the new airline’s inaugural flight. During this phase, air service development and business development processes (e.g., incentives, market analysis, and term negotiations) are generally performed under a code name, so as not to prematurely name the new airline in the public sphere.
2. Business Processes. Occurs 6 months to 6 weeks prior to the new airline’s inaugural flight. During this phase, business processes such as IT common-use integration, marketing partnerships, service announcements, space build-out, and training requirements occur.
3. Materials Delivery. Occurs from 6 weeks up to the day of the new airline’s inaugural flight. Stanchions, new signage, and so forth are delivered and must be installed. “The new airline doesn’t yet have space to accept and store large shipments to support their operation, so by making airport warehouse space available to the airline, we can avoid having large shipments dropped off at the curb.”
4. Ongoing Operation Support. Occurs on the day of the airline’s inaugural flight to 3 months or more after. Operations and Maintenance are regularly called on to assist the airline with daily operational challenges, includes operation of the passenger loading bridge, passenger queuing, and door alarms.

The airport has learned that, even with a standardized checklist, each airline has unique needs and requirements, so the checklist is revised if necessary. For instance, the airport has learned that requiring the new airline to transmit their flight schedule to the TSA to ensure proper staffing for passenger screening is much more effective than this responsibility resting with airport staff.

After every new airline onboarding experience and launch, airport staff come together to perform a comprehensive debriefing. During this debriefing, challenges experienced, solutions developed, and lessons learned are shared. “It is important to know the critical path to the next step of onboarding versus what steps can be performed simultaneously.” Especially with multiple mini airline onboardings annually, this airport has learned to create efficiencies in the onboarding process. See Appendix D for a sample checklist for airline onboarding at IWA.

Case Example 8: Eugene Municipal

Interviewee: P. Newton, Assistant Director of Finance and Administration
All quotes are from personal communication with P. Newton on January 12, 2024.

Eugene Municipal Airport (EUG), located in west-central Oregon, has welcomed no less than three new airlines within a 1-year period. With a small airport management staff of ten engaged in the airline onboarding process, weekly group meetings are designed to ensure that all aspects of airline onboarding are being addressed and personnel understand their responsibilities. According to the Airport’s Assistant Director of Finance and Administration, the staff engaged with onboarding do not operate from a checklist; rather, “managers oversee their team’s section of onboarding.” Depending on specific airline requirements (e.g., extensive build-out to create additional office space), the staff member with responsibility for that area will engage additional staff and contractors as necessary to fulfill those requirements.

Although EUG prefers a minimum of 2 months’ notice from an airline before they begin new service, airport staff have successfully accomplished onboarding a new airline within 1 month before service. “Six months advance notice is not ‘real-world’ for a small airport” (In essence, being a small hub, the airport cannot afford to delay onboarding for risk of losing the interest of a new airline due to perceived delays in onboarding.) EUG’s small staff creates efficiencies in communication and processes that support such rapid onboarding.

As airlines continue to expand and new entrants begin service, EUG has experienced space constraints within their airport facilities. This has required compressing the space airlines occupy

at the ticket counter, shared baggage claim devices, and encouraging airlines to use hardstands for smaller aircraft. Generally, although there are growing pains associated with bringing on a new airline, all tenants, and the community benefit. To satisfy future demand, the airport is planning for additional terminal and gate space with new construction.

When offering advice to an airport director planning to onboard their first airline, the Assistant Airport Director explains, “Offer an interim step of temporary buildings, which for us has turned out to be a good tool in transition periods. Don’t do a big build for your first airline until you know their commitment to stay.” Also, “Get to know your airline representative, including airline real estate personnel, really well.” It is important to, “begin building a positive working relationship from the start.”

Case Example 9: Bozeman Yellowstone International

Interviewee: S. Humphrey, Chief Operating Officer
All quotes are from personal communication with S. Humphrey on January 9, 2024.

Bozeman Yellowstone International Airport (BZN) has onboarded no less than five airlines in the past 15 years. The most recent airlines to begin service at BZN are Avelo Airlines and Southwest Airlines. According to the Chief Operating Officer, “Attracting a new airline and onboarding that new airline is an absolute community effort.” With a small staff, BZN relies on the Bozeman Chamber of Commerce, Belgrade Chamber of Commerce, Big Sky Ski Resort, and Yellowstone Club to partner in all air service and some onboarding efforts. Once an airline announces the intent to begin service at BZN, the group of stakeholders continues working with the airline to ensure marketing support is provided for a successful launch.

Six months prior to starting service, the airline sends their station opening team (including flight ops and ground support) to BZN. This on-site visit is critical to enable airline staff to tour the airport facilities, meet available ground handlers, meet fuel vendors, and meet members of the Chambers of Commerce. BZN has found that most airlines have their own startup checklist, which supports airline onboarding.

During the 6 months prior to starting service, airport staff, led by the Airport Director and Chief Operating Officer, work on airline requirements related to IT, facilities build-out, office space, operations space, ticket counter space, baggage claim space, and gate space. Virtual meetings are held between airline and airport staff every 2 weeks to ensure that sufficient progress is being made to meet airline requirements and all systems are ready for the airline’s inaugural flight.

BZN is atypical in that the Airport Director has 15 years of airline experience, and the Chief Operating Officer has 23 years of airline experience, including starting a new airline (Virgin America). “Onboarding a new airline is second nature for us. With our airline experience, we know what airlines require and our airport is prepared to provide that.” When asked if their airport has a checklist used for airline onboarding, the Chief Operating Officer said, “The onboarding checklist is burned in my mind.”

When offering advice to an airport director preparing to onboard their airport’s first airline, the Chief Operating Officer explains that it is an “absolute community effort. It cannot fall solely on the Airport Director’s shoulders. It has to fall on the shoulders of the community.” It is critical to know what the airline requires for a new market. “Southwest Airlines, for instance, is interested in how many cranes are operating in the city – indicative of the degree of economic development occurring.”

Case Example 10: Long Beach

Interviewee: R. Reeves, Operations and Facilities Bureau Manager
All quotes are from personal communication with R. Reeves on January 29, 2024.

Located in Southern California, Long Beach Airport (LGB) is home to three airlines. “We can be very flexible due to our size. We pride ourselves in that. Our goal is to make each airline successful.”

LGB has not onboarded any airlines in the past 3 years but has onboarded two airlines in the past 10 years. This is not the result of a lack of airline interest but airport noise restrictions.

As stated in Chapter 16.43, Airport Noise Compatibility, of the Long Beach Municipal Code:

Referred to as “slots,” one slot represents one takeoff and one landing per day (or within 48 hours). To retain a slot, an airline must fly each slot 85% annually, 70% over 6 months, and 60% over 1 month. This prevents abuse of slots and can make slots available for additional flights (and airlines). In addition to the 41 permanent slots at the airport, LGB has an additional 17 supplemental slots because noise goals were met. These 58 total airline slots are in use; thus, the airport cannot accommodate additional airlines.

If LGB leadership is approached by an airline interested in starting service, the first consideration by airport staff is whether the airline can be accommodated considering available slots. If not, the airline is placed on a waiting list. Even incumbent airlines wanting to add flights may have to be placed on a waiting list if slots are not available. As airlines accept a slot or decline a slot, they are moved to the bottom of the waiting list.

If one or more slots become available, a new airline may be accommodated. All new entrants are entitled to two slots. New airlines have 90 days to serve the slot (i.e., advertise) and 180 days to operate the slot (i.e., operate their first flight). Additionally, new airlines must provide a $10,000 slot bond.

Once notified of the interest by the airline and assuming that slots are available, airport staff in multiple departments engage in the airline onboarding process. “We get other departments involved pretty quickly.” For example, the Airport Noise office begins discussion with the Airline Network Planners. The Airport Marketing and Public Affairs office begins discussion with the Airline Public Affairs staff. The Airport Maintenance and Properties departments begin discussions with Airline Facilities staff. Landside Operations, Airside Operations, and IT also speak to respective airline representatives to ensure that airline onboarding proceeds in an efficient and thorough manner.

Regarding airline onboarding, the Operations and Facilities Bureau Manager indicated that much depends on the financial strength of the airline and the airline’s ability to pay landing fees and other fees. “Knowing the industry is important. Each airline is different.” Also, “Understand how the airline is capitalized. Consider their financial structure to make sure they are well-funded to support operations at your airport.” It is also important to think in the long term. “Understand how the airline intends to generate revenues. What are their markets and are they viable? One airline intends to generate customers. Another airline, on the other hand, intends to service their existing customer base.”

Case Example 11: Charles M. Schulz—Sonoma County

Interviewee: J. Stout, Airport Director
All quotes are from personal communication with J. Stout on February 7, 2024.

As an airport with seasonal traffic located in Santa Rosa, California, the Charles M. Schulz—Sonoma County Airport (STS) currently has service by three airlines—Alaska Airlines, American Airlines, and Avelo Airlines. According to the Airport Manager, STS was actually one of Avelo’s inaugural airports for their nationwide airline launch, with a Burbank (BUR)—STS flight. Avelo also announced plans in early 2024 to create an airline crew base at STS. Although STS prefers significant advance notice from an interested airline, STS has successfully conducted airline onboarding in the past with only several months’ notice.

STS has streamlined the operation and onboarding of airlines. With a relatively small staff of 23, the airport director has found it most effective to lead airline onboarding at STS. With only four aircraft parking spots and two gate hold rooms, per-use is the norm, except for exclusive-use ticket counters. The airport has a template for lease agreements and airline operating agreements. Discussions are held with the airline regarding space needs.

In offering advice for other airports, the Airport Director shares, “Begin working on required agreements right away. Try to avoid a situation in which the Airport Board executes an agreement on the day of the scheduled inaugural flight.” Also, “keep elected officials and partners informed.” Communication is key, including informing incumbent airlines, TSA, and community stakeholders. Third, “Get the name out. Make them known.” Working with the County Marketing Department, local Chamber of Commerce and others can help “make the airline known” in the local community. “Help the airline promote their new service in the specific promotional channels they prefer.”

Case Example 12: San Bernardino International

Interviewee: M. Gibbs, Airport Director
All quotes are from personal communication with M. Gibbs on January 4, 2024.

“Although there were no hiccups, onboarding any airline takes a lot of effort.” According to the Airport Director of San Bernardino International Airport (SBD), successful airline onboarding requires constant communication. Bringing all airport staff together in the same room each week is key to ensure that all roles are identified, and tasks are properly delegated and addressed. “With potential overlap, I must ensure that roles are clearly defined.”

SBD has ensured that issues on the inaugural flight day are minimized by adopting a “dry run” approach. This concept involves airport staff tasking the system just as the new airline will, by bringing in suitcases to “check-in” for a flight, loading the baggage conveyor, loading the baggage claim device, and so forth. This dry run occurs during the 4 weeks prior to the inaugural flight. “You can only get so much done in the office.”

Lessons learned include the following:

To summarize, “Airport staff communication is key to successful onboarding of a new airline entrant.” With everyone working together and properly communicating, duplication of efforts can be avoided, and the airline can be smoothly onboarded.