The December Traverse City Business News is on newsstands today, with a cover story that will pique the interest of anyone expecting lower airfares out of Traverse City's Cherry Capital Airport.

"The Airfare War Is Over" is a comprehensive look at the airline industry, competition among Michigan's regional airports, and new Cherry Capital Director Kevin Klein. Most Ticker readers will want to get to the heart of the matter: What about lower airfares out of Traverse City?

"You have lower fares now," says Klein. And thus is his challenge: How to educate the public about a rapidly changing industry; demonstrate leadership in his new role while explaining he has no control over what airlines charge; and articulate that the fare battle is over – and we already won.

Back in May, Klein choreographed a series of meetings with Delta Airlines and "showed them that they're leaking tens of thousands of passengers to Grand Rapids." Klein urged Delta to see the opportunity for fuller planes and more profits out of Traverse City – and it worked. As of May, airfares out of TC are significantly lower than they were, and more in line with those from Grand Rapids.

"Maybe before, Orlando was $450 from Traverse City and $250 from Grand Rapids," says Klein. "Now it's maybe $250 from Grand Rapids and $280 or $300 from TC. We're in the ballpark."

A better deal? Certainly. But likely as good as it'll get for TC. As Klein explains, airlines are starving for profitability these days (case in point: American Airlines' bankruptcy filing earlier this week). As they're retiring planes in their aging fleets, they're not replenishing with new planes. With challenging economics and fewer planes to go around, the airlines are taking a harder look at where they fly and why. 

That's not good news for smaller airports, says industry expert Mike Boyd.

"Take a look at a map of airports in Michigan," he says. "Airports overlap all the way across. You have Saginaw, Flint, Kalamazoo, Lansing and Grand Rapids. At some point soon, airlines are going to go to one or two [regional airports in the state], but not all. You have the same situation in northern Michigan."

Though regional airport troubles are an increasingly real scenario, TC has good reason for optimism. Thanks to its regional population and strong tourism draw, and Cherry Capital Airport's proximity, airport facilities and runway lengths, TVC likely won't have to rely on government subsidies (as many regional airports do) or fear its airlines will pull out. In fact, if other small airports fold around it, TC stands to become a regional powerhouse.

"Basically there are ten major airlines who are part of three global alliances. We have airlines from all three alliances here, so we have superb connections worldwide," Klein says. "There are so many places that just can't say that anymore."

So what's next? Going forward, Klein and Boyd agree that Traverse City must embrace and leverage its strengths with airlines. "Our strength will always be high-end leisure travel. We're helping attract people coming here who have money and spend money here that they wouldn't otherwise," Klein contends.

To that end, his presentations to airlines recently have been focused on showcasing Traverse City and the region as a world-class leisure destination. He's been able to get extra flight and seat concessions from airlines when warranted, such as for the thousands of incoming Horse Shows competitors in July and August, as well as for a few large conference groups at area resorts, Interlochen students and families, and the NHL Prospects Camp in September.

Want to read more? Check out the December issue of the Traverse City Business News; you can find it at a local Shell Station, Horizon Books, Tom's Markets, Oryana, or dozens of other regional locations.

Cherry Capital Airport By The Numbers
$1.6 million: annual capital budget
$4.4 million: annual operating budget
$0: funding from local taxpayers
56, 25, 19: percent of airport's traffic handled by Delta, United, and American respectively
4th: Cherry Capital's state rank in number of passengers behind only Detroit, Grand Rapids, and Flint
18: number of Michigan commercial airports (behind only California, Florida, and Texas)