“If you’re not a hub, you’re working twice as hard on air service development,” says Carol Hewitt, director routes development, Edmonton International Airport (EIA). There are good rewards on offer, however. An airport actively engaged in its own air service development controls its own destiny.
It allows the airport to compete, to establish its market position and its network. Most importantly, it provides a stronger revenue stream by increasing the size of the business and the many benefits that accrue from that.
There are challenges and expectations to manage, of course. New services can have a cannibalisation effect on existing services, for example. And securing a new service is subject to many variables, such as the airline strategies, global economic situation or perhaps the availability of new aircraft. There is a huge backlog on aircraft orders, and delays, particularly on new models, are not uncommon.
Hewitt reveals that it took a long time for EIA to realise some of its services. London took more than five years to develop as did Dallas and Reykjavik. Houston, New York and Mexico City each took over three years. And when it comes to stakeholder involvement, “you need to give clear and concise boundaries and ensure you have the resources to manage their expectations and your own,” says Hewitt.
EIA’s Icelandair win is a classic example of air services development. The first presentation to the carrier was made in 2007 at World Routes in Stockholm. Although there was a bilateral restriction between Canada and Iceland in place at the time, Icelandair was an obvious target carrier for the airport due to the northern geography of both parties. And that bilateral was due to be lifted.
The relationship developed over the next few years, particularly at World Routes events, and in 2012 it started to get serious. The tourism and economic development boards in Edmonton got involved, the specifics were ironed out and a firm offer was proposed.
The carrier’s original intention was to treat EIA as a seasonal route and fly there three or four times a week. But forward bookings were so positive that this idea was quickly shelved in favour of a year-round service with increased frequencies in summer.
Even the first flight was moved up the schedule and the first Icelandair service from Reykjavik touched down at Edmonton on March 5, 2014. The Iceland prime minister attended the launch, there have been follow up trade missions and Icelandair even held their annual sales meeting in Edmonton.
“Icelandair hit the market at exactly the right time because Edmonton is a very hot prospect right now,” says Hewitt. “We’re both really pleased with the results.” EIA has sponsored World Routes since 2012. Hewitt stresses the global exposure this affords the airport. “It gives us an identity,” she says. “It tells people who we are and where we are. It’s a big plus from an air service development perspective.”
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