Atlantic City International Airport (ACY) Introduces Air Service Incentive Program
December 187, 2013 - Atlantic City International Airport (ACY) introduced its new Air Service Incentive Program today—another measure to attract, expand and retain air service to the region. The airport’s incentive program waives airport fees and provides marketing support to help offset the substantial airline costs associated with introducing new or expanded service in a market.
The Port Authority of New York and New Jersey and the South Jersey Transportation Authority developed the incentive program in accordance with FAA guidelines. The incentive program is based on information that the Port Authority has gathered from numerous discussions with airlines and other air service stakeholders as part of its ongoing efforts to attract air service to Atlantic City. The new incentive program addresses some of the risk that an air carrier faces when committing its most valuable asset to a new market. By providing marketing support and waiving landing, rent, and other airport fees, ACY demonstrates its willingness to share risks by helping support the service as the market matures. The total value of the incentive will vary based on the weight of an aircraft, the number of new routes, and the amount of airport support space that is required. The term of the incentive, which is regulated by the FAA, is limited to 24 months. It is available to any carrier that serves a new nonstop, year-round route at least three times a week. There are also other incentives available for new international service, and for new seasonal routes that are operated for a minimum of six months.
The air service incentive complements the recent announcement of new air service by New Jersey Governor Chris Christie and United Airlines Chairman, President and Chief Executive Officer Jeff Smisek. United will begin providing daily nonstop flights from ACY to United’s hubs at Chicago O’Hare International Airport and Houston’s George Bush Intercontinental Airport.
“This program offers every airline the opportunity to begin new service in Atlantic City, which is great news for the region’s local business who will benefit from increased air service to ACY,” said Port Authority Chairman David Samson. “In order to succeed in the long term, airlines that serve destinations like Atlantic City rely on the support of those communities, and I am confident that any airline beginning service to ACY will find meaningful and enthusiastic partners in the chambers, economic development agencies, and local businesses, including hotels, casinos and attractions, of Atlantic City.”
U.S. Congressman Frank A. LoBiondo (NJ-02), Chairman of the House Aviation Subcommittee said, “The aggressive approach by the Port Authority of NY/NJ is a welcome resource in ACY’s ongoing efforts to bring additional air service to our region. As the Port Authority of NY/NJ recognizes, the untapped potential of ACY and access to the greater South Jersey region is a win-win opportunity that I hope all airlines seriously review.”
“Since taking over the business operation of ACY on July 1, 2013, the Port Authority has worked hard to aggressively court new carriers. The incentive program fulfills the Port Authority’s objective of establishing ACY as a strong regional airport and alternative international gateway that addresses the growing needs of the region while developing the airport as a strong economic driver,” said Sam Donelson SJTA Acting Executive Director.