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Advocates for Change

Capital Region International Airport Executive Director Robert Selig described it as the “coming storm” of the airline industry. That storm is further airline consolidation set amidst gloomy economic times, and local and regional airports had better be prepared for the fallout.
Air travel is being reshaped across the country. Airlines are seemingly in a perpetual round of consolidation, and with fuel costs continuously on the rise, it’s expected there will be fewer airlines to fill gates and terminals at airports everywhere. That could include Lansing’s Capital Region International Airport.
Selig said the best way to combat dwindling air service and attract new airlines is to have local businesses demonstrate regional support of the airport.
The Capital Region Airport Authority and the Lansing Regional Chamber of Commerce created the Regional Business Travel Trust in 2004 to provide a larger voice for the business community hoping to improve airline travel options at Capital Region International Airport.
The broad-based coalition of business, educational and governmental organizations has more than 200 members, including the State of Michigan, Michigan State University, Jackson National Life Insurance and Auto Owners Insurance. Members can book discounted airfares through the group’s official website, www.flylansing.com, and receive discounted parking fees and car rentals.
Travel Trust members share information regarding travel budgets and which destinations their employees travel to most often. The companies are encouraged to have their employees fly from Lansing’s Capital Region International Airport when possible. Collectively, Travel Trust members spend in excess of $25 million annually in air travel. Most major employers in the mid-Michigan area belong to the Travel Trust.
“The Travel Trust in concept is intended to inject the business community and organize the business community into the airport’s air service development program,” Selig said. “This philosophy puts the customer at the negotiating table for airport service along with the airport authority.”
Membership in the Travel Trust is open to any business and is a way for local companies to come together and present a unified voice, Selig explained.
“By getting these companies together, we can emphasize to airlines that these are people with significant travel budgets who are willing to support local air service. It gives our business community a chance to communicate regional needs directly to the airlines.”
“The Regional Business Travel Trust (RBTT) recognizes Capital Region International Airport as a vital cog in the regional economy,” said Ross Woodstock, administrator of RBTT. “Capital Region International Airport is worth about one billion dollars a year to this region. Good air service is good for the economy, which is good for area businesses.”
The Capital Region Airport Authority contracts with Kolt Communications for the administration and marketing of the RBTT. Funding for the RBTT comes out of the airport’s annual half-million dollar marketing program.
Since its launch in 2004, RBTT has been actively involved in talks with airlines to bring additional service to Capital Region International Airport, Woodstock said.
“We have had recruiting visits with various airlines. The airlines are definitely aware of our presence. Airlines are interested in data and how popular a certain route might be. Through the information we collect from our members, we can give them tangible data for arguing that we should have more air service,” Woodstock noted.
A crucial development is the airport’s new designation as a U.S. port of entry. The Capital Region Airport Authority announced earlier this year an agreement with the U.S. Customs and Border Protection for port of entry designation, which allows the airport to handle international passenger and cargo flights.
“This will be very beneficial as we look at international opportunities. There are a lot of challenges out there right now, and they will persist for at least the next several years,” Woodstock added.
The airport officials say the customs operations could draw flights to the Caribbean, or maybe Mexico or Canada. The airport earlier announced charter service to Ireland beginning in 2009.
Passenger traffic at Capital Region International Airport fell to a near 20-year low in 2007.
International cargo shipments coming through the airport will certainly help local businesses doing business globally, Selig said.
Charlotte-based specialty vehicle and chassis maker Spartan Motors Inc. participates in the Regional Business Travel Trust because the success of the company is tied directly to the amount of air service at Capital Region International Airport, said John Sztykiel, Spartan’s president and chief executive officer.
“A strong airport is absolutely essential to the economic viability of this area. It gets back to alignment. The alignment of a variety of businesses and organizations can have more impact and be more effective in improving the efficiency of the airport and insuring the success of the airport.
“And as society becomes more and more customer-centric, it will be imperative for the local business community to have access to more and more transportation services, and the airport will be the central figure in all of that,” Sztykiel said.
Spartan Motors’ travel policy requires its employees to use Capital Region International Airport for travel whenever possible, he added.
Meanwhile, the next growth step for the Regional Business Travel Trust will likely be officially formalizing the group, likely through the incorporation process, said Selig.
“Right now (RBTT) is a loosely knit fraternity of businesses. We want to give it more structure, either through incorporation or making it a LLC. That will give the organization even more power to negotiate with airlines.”
Author: Randy J. Stine
Photography: Terri Shaver
Capital Region Airport Authority
Capital Region International Airport
Robert F. Selig, Executive Director
4100 Capital City Blvd., Lansing
517-321-6121
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