27 January 2010

Business Leaders Form Regional Air Alliance to Bring Cheaper Fares, Better Connections to Grand Rapids Airport

mLive



If a group of West Michigan business executives have their way, airline flights out of Grand Rapids soon will be cheaper, more abundant and able to connect passengers to anywhere in the world.

That's the goal of the new Regional Air Alliance of West Michigan, an initiative launched today at a press conference in downtown Grand Rapids and led by Dick DeVos. It also includes Meijer Inc. and The Right Place Inc.

"From this point forward, we want to be sure that no one is forced to drive to Chicago or Detroit anymore," said DeVos, president of the Windquest Group, a former gubernatorial candidate and son of Amway co-founder Rich DeVos.

The efforts involve CEOs and company executives from Grand Rapids, Lansing, Kalamazoo and Traverse City who plan to launch an aggressive marketing campaign aimed at keeping airlines already operating out of Gerald R. Ford International Airport, and attracting new low-cost service.

"The cost of flying out of Grand Rapids has been historically higher than it needs to be to compete," DeVos said.

That's because competition for airline service is fierce, said Gerald R. Ford Airport Director James Koslosky.

"There are 200 to 400 similarly situated communities and regions that are literally competing for every airline seat we have landing here at this airport," he said. "Given the current airline economics and given the economy where we are, those are scarce resources."

The problem, he said, is compounded by the fact that all those markets want the same thing -- low fares, international connections and networked domestic service to all of those airports.

And they want that from airlines that have cut capacity and consolidated systems, but still lose money, Koslosky said.

Gerald R. Ford Airport currently commands about 65 percent of passenger travel from a market that includes airports in Lansing, Kalamazoo and Traverse City.

But the airport is still "under served" despite having seven long-established airlines and low-cost carrier Allegiant Airlines, which operates direct flights from point to point and does not fly every day.

"We need a low-fare carrier that serves both leisure and business travelers and goes to a focus city and feeds out of that city to other markets," Koslosky said.

Birgit Klohs, president of the economic development group The Right Place Inc., said when talking to existing or potential customers, the frequency, cost and connectivity of air service is always "90 percent plus" a part of the conversation.

"We are dealing really in a global economy; many of our local companies do business overseas," Klohs said. "We cannot afford not to have world class service in and out of here at prices people can afford."

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