The Future, However, Looks Good

Industry-wide cutbacks have resulted in a decrease in the number of passengers flying in and out of Manchester-Boston Regional Airport (MHT) for the first time in recent years... while industry speculation of airline mergers could stall growth further.

For Manchester Airport Director Kevin Dillon, that means keeping a watch on merger proposals, while continuing efforts promoting MHT as a convenient regional hub and gateway to the Boston area.

"I think this is a shake-out going on in the aviation industry," Dillon told the Concord (NH) Monitor. "I think there continues to be hurdles to get over as airlines talk about further consolidation and mergers that could also lead to a reduction in service levels and seats."

A strong New Hampshire economy, high demand for an easy-access local airport, and a growing population with disposable income will likely keep the market strong, Dillon and state economic experts say, even if Manchester does see a second year of slowed growth.

"There is nothing that has changed dramatically for Manchester," said Robert Shumsky, an associate professor at Dartmouth's Tuck School of Business who studies airline operations. "The population is still there, the demand is more or less still there. I think they'll hold steady and slowly increase."

A study conducted by the New England Airport Coalition this fall predicted Manchester airport will see between 3.3 percent and 5.5 percent average annual growth over the next decade.

Traveler traffic is also being encouraged by improved amenities, as well as convenience in accessing the airport.

Manchester launched a national advertising campaign this year to attract travelers from across the country bound for Boston:

• In April, the airport changed its name to include Boston -- a move that will help put the airport on the map for travelers in other parts of the US who most likely know where Boston is but have never heard of Manchester, Dillon said.
• In November, the airport rolled out a free bus service to and from the Anderson Regional Transportation Center in Woburn, MA, and the Sullivan Square subway station just outside Boston.

"I don't think there are too many people in the New England states who haven't heard of Manchester airport," Dillon said. "Now we've started to turn our attention to national marketing. It's more directed toward the guy in Albuquerque who is now going to use Manchester as a gateway to access the Boston metro area."

More national advertising, particularly Internet advertising, will be an objective for the coming year, he said.

The airport also began offering free wireless Internet and installed a new terminal play area for parents traveling with small children.

An increase in the number of cargo flights this year -- chiefly FedEx and UPS flights -- has been an especially bright spot for the airport this year, according to Dillon. By the end of November 2006, the airport had seen a 13.3 percent increase in compared to the same period in 2005: 159,502,500 pounds vs. 140,808,270 pounds.

State officials will be working closely with the Manchester-Boston Regional Airport to ensure the success of the last decade translates to the next one, said State Economic Development Director Mike Vlacich.

"It really does serve as one of the great drivers of our economic success," Vlacich said. "It's a real asset as we're making the case to businesses interested in coming to the state. It's one of our real tools."

FMI: www.nerasp.com, www.flymanchester.com, www.nheconomy.com, www.tuck.dartmouth.edu/faculty