City of Bismarck Gives Wings To Next-Generation Air Service Model

Mayor John Warford has announced the signing of a revolutionary contract that releases $1.25 million under a USDOT Small Community Air Service Development grant. Bismarck's Board of City Commissioners and USDOT previously approved use of federal funds to launch Point2Point Airways. With the contract signing, Point2Point will now begin providing affordable, customized air travel to businesses in Bismarck and other communities in the region that wish to take advantage of the innovative new service.

"Network connectivity is the key to business success in the 21st Century. In the same way that the Internet wires us to the world, Point2Point Airways connects Bismarck's businesses to commercial centers and small communities alike throughout our region like never before," Mayor Warford said. "No longer will commercial activity in the region be constrained by the inefficiencies of long drives behind the steering wheel of a vehicle."

According to Bismarck City Commissioner Bryce Hill, "The last three years of researching this issue have convinced us that the American air transportation sector is poised to undergo a fundamental realignment. Technology and regulatory reform are shifting us away from a scheduled, hub-and-spoke system to an on-demand, customized air travel model. Point2Point Airways represents Bismarck's opportunity not only to participate in this new future, but actually to shape it."

Under the Point2Point Airways membership program, businesses purchase pre-paid blocks of travel time. When member companies wish to fly, Point2Point will dispatch an airplane and pilot to pick up passengers and fly them directly to their destination airport and home again - when and where they choose - according to itineraries that travelers customize for themselves to meet their own personalized schedules.

"Just like every Fortune 100 company in the United States today with a corporate flight department, regional businesses will very soon have their own dedicated fleet of on-demand aircraft available," said Point2Point Senior VP of Sales Robert Crumpton.

Point2Point will launch using new Cirrus SR22 aircraft built by regional manufacturer Cirrus Design. "We are delighted to be part of this exciting new opportunity and proud to have been chosen to help ensure the success of this new endeavor," according to Cirrus Executive VP of Sales and Marketing John M. Bingham.

Under the Point2Point plan, an affiliated network of regional air charter operators will provide service augmenting the Cirrus fleet's capabilities. An online reservations system is under development to allow Point2Point affiliates to promote their charter aircraft and book flights on Point2Point's Web site. Travelers booking flights on the Point2Point reservations system will be free to choose between affiliated operators' aircraft and Point2Point's fleet.

"After learning more about Point2Point, we are confident now that this venture represents a growth opportunity for air charter and fixed-base operators throughout the region," said Brent Seifert, president of GFK Flight Support in Grand Forks, ND, a full-service FBO offering aircraft fueling and maintenance services, flight instruction and air charters. "We look forward to a mutually rewarding business relationship with Point2Point Airways."

Other general aviation businesses in the region also are expected to benefit from increased fuel sales and the provision of maintenance services supporting Point2Point.

"We are excited by the new business opportunity that Point2Point represents for our expanding facilities at the Bismarck Municipal Airport," said Bob Simmers, president of Aircraft Management Services Inc., a Bismarck company operating a 26,000 square-foot hangar and maintenance facility at the airport. AMS is responsible for providing services supporting more than 150 area aircraft to include Northwest Airlines and Allegiant Airlines.

In 2002, USDOT awarded a $1.5 million grant to Bismarck. Under previous phases of the grant, the city used about $250,000 to research the feasibility of launching a new airline to complement existing regional air travel options. The city contracted with EASE LLC, a North Dakota air service development company, which was instrumental in assisting the city develop its launch plan for Point2Point Airways.

"Our role now is to ensure that Point2Point has every opportunity to succeed while honoring its obligations under the City's USDOT grant award," said EASE LLC President John Boehle.

As a condition of the contract award, Bismarck is requiring Point2Point to match - on a dollar-for-dollar basis - USDOT's Small Community Air Service Development grant of $1.25 million.

"The City's match requirement is a threshold fundraising goal," Boehle said. "We will obligate Point2Point's executive management team - which we are in the process of recruiting - to exceed this target by a substantial margin in a focused effort to build a sustainable regional air transportation business."

Research developed under Bismarck's USDOT grant indicates that affordable on-demand air service provided by Point2Point will save businesses considerable time and money by flying quickly and directly to hundreds of regional airports throughout the Northern Great Plains and Canada. Such travel eliminates long waits for airport parking, check-in lines, security processing, boarding, connecting flights and waiting for return flights. Point2Point provides businesses with the region's first-ever customized air travel option connecting regional commercial centers and smaller communities - affordably, time-effectively and safely.

"The City of Bismarck deserves a lot of credit for its sponsorship of this program, which so clearly benefits not only Bismarck, but communities throughout the Northern Plains," said Dakota Aircraft Services General Manager Larry Gustafson of Devils Lake, ND.

"In the 15 years that we've been in business, never has an opportunity as exhilarating as this come along. We can't wait for Point2Point to land at our airport."

FMI: www.flyp2p.com