Building Air Service Sustainability: Analytical Approach to Documenting Air Carrier Incentive Programs in Airport Sustainability Plans

Airport operators occupy the complex space between managing a major economic generator for their region and operating a piece of municipal infrastructure that generates significant environmental emissions. Airport operators document airport environmental impacts and economic vitality and development, as well as study initiatives to improve in these areas in airport sustainability plans. However, neither airport sustainability planning guidance nor plans in practice document the economic or environmental impacts of air carrier incentive programs, which are municipal and airport-funded programs to waive fees for airlines launching new routes. As air carrier incentive programs (or airline incentive programs) are a mechanism through which airports and cities invest in growth and economic development while contributing to the environmental impacts of their airport, these programs are a natural fit for study within the structure of airport sustainability plans. This study presents a methodology for estimating the air traffic, investment costs, and environmental emissions from new flights launched under airline incentive programs and compares these values with existing economic development and sustainability initiatives documented in airport sustainability plans. It is found that the scope of airline incentive programs is significant in terms of air traffic, costs, and emissions, providing justification for documenting airline incentive programs. How a gap in the understanding of the economic value of incentivized flights hinders a comprehensive evaluation of airline incentive programs is discussed. The lack of a planning process for airline incentive programs keeps airport operators from learning from the experiences of their peers.