The Oklahoman

NONSTOP INCENTIVES

OKC picks up marketing tab for some flights

- BY KAYLA BRANCH Staff Writer kbranch@oklahoman.com

When American Airlines launched its first nonstop flight to Philadelph­ia from Oklahoma City earlier this month, Will Rogers World Airport kicked in $150,000 in free marketing.

The city-owned airport also waived a year's worth of landing fees for the flight.

In the past five years, the airport has provided about $925,000 in free marketing and thousands of dollars in other incentives to airlines providing nonstop flights to new destinatio­ns.

“The airport recognizes that air service is really important not only to the airport, but to the community of Oklahoma City,” airport spokeswoma­n Karen Carney said. “We also recognize that we are in a very competitiv­e environmen­t ... . So the incentive programs help get the word out to the community that they have this new service and help it get off the ground, so to speak.”

Providing new nonstop flights on unserved routes can garner an airline up to $75,000 in marketing incentives depending on how many times a week the route is flown. Nonstop flights to destinatio­ns targeted by the city can receive double that amount, which is why the Philadelph­ia route received the higher sum. Airlines also can receive discounts on gate and ticket counter rentals.

Typically, only a small number of routes qualify each year for any kind of incentive, Carney said. But this year, four airlines have introduced nonstop flights to new destinatio­ns, receiving about $475,000 in marketing incentives, as well as discounted landing fees based on passenger traffic. One of the airlines, Via Air, received an additional $75,000 because it was a new carrier at the airport.

The airport, operated by the Oklahoma City Airport Trust, took in more than $67 million in revenue in 2017, the majority from landing fees, parking lot receipts and rental and concession income, according to an annual financial report.

Money the airport trust spends on incentives comes from revenue received from advertisin­g placed in and around the airport, Carney said.

The marketing money doesn't go directly to the airline, but instead goes to Oklahoma City-based marketing firm Ackerman McQueen, which buys advertisin­g and plans promotiona­l events, among other things, said Cynthia Reid, vice president of marketing and communicat­ions for the Greater Oklahoma City Chamber

of Commerce.

The existing relationsh­ip between the Chamber and Ackerman McQueen keeps down expenses by limiting overhead, allowing more money to be spent on marketing, Reid said. The chamber also lobbies airlines for new routes and helps with

airport marketing.

The chamber receives no money for its work on the incentive program, Reid said.

While the incentive program is a bonus for airlines that charter new flights out of Oklahoma City, it is not a decision swayer, said Victoria Lupica, a spokeswoma­n for American Airlines.

“Incentive agreements are not the driver for adding new service. Airports may have different reasons for offering incentives and to what scope and degree,” Lupica said. “We fly where people want to go or fly from, and, I believe, that we don’t consider the incentive as much as the population that wants to travel and our ability to get them safely to point to point and connectivi­ty.”

Carney, the airport spokeswoma­n, agreed, saying the growing number

of flights is a product of the growing community.

“I think these announceme­nts have a lot to do with how well Oklahoma City is doing as a whole,” Carney said. “The airlines look at the communitie­s, and I talk about new businesses that are starting, the convention center, MAPS constructi­on . ... I think that was part of our story this year, as well as airlines over the last couple years having expanded their fleets and capacities and we were able to benefit from that.”

It takes businesses and a traveling community to attract air service, Reid said, but it also takes air service to attract potential businesses. When Amazon announced it was looking to build a second headquarte­rs, the company's request for informatio­n to cities made it clear that air service would play a huge role in the decision.

With new services and a terminal expansion

in the works, Oklahoma City is on its way to being a noteworthy airport, Carney said. And as the Oklahoma City area benefits economical­ly from new flights, she said it is vital that the routes are actually used.

“One of the things we always try to remind people is that it takes a long time to develop relationsh­ips with the airlines and to make cases for the routes you hope to get so that when we do get them, it’s really important for the community to utilize them,” Carney said. “If you’ve got a healthy airport and air service, we’ll have that economic growth.”

The airport is still looking to fill routes to LaGuardia Airport in New York City and a nonstop flight into Miami, Florida, Carney said.

In November, the airport will spend roughly $150,000 to promote a new Southwest Airlines flight to Ronald Reagan Washington National Airport.

 ?? [OKLAHOMAN ARCHIVES PHOTO] ?? A passenger jet takes off in June 2016 from Will Rogers World Airport in Oklahoma City.
[OKLAHOMAN ARCHIVES PHOTO] A passenger jet takes off in June 2016 from Will Rogers World Airport in Oklahoma City.
 ?? [THE OKLAHOMAN ARCHIVES] ?? A Southwest Airlines flight prepares to leave for Reagan National Airport in Washington, D.C.
[THE OKLAHOMAN ARCHIVES] A Southwest Airlines flight prepares to leave for Reagan National Airport in Washington, D.C.

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