On Robert Selig’s watch,
Capital Region International Airport is avoiding the natural reflex to retreat inward in tough economic times. Instead, the airport’s executive director is spinning the globe in search of opportunities.
To reflect its recent U.S. Port of Entry status, the airport’s name incorporated “international” into its title. Additionally, the airfield’s runway was expanded to 8,500 feet while work continues on a $25 million terminal expansion that includes a federal inspection U.S. Customs area.
Such progress has been achieved against the backdrop of losing
Allegiant Air’s service to Las Vegas as well as a 20-percent workforce reduction to pare $1 million from the authority’s $8 million annual operating budget.
Selig recently talked with Capital Gains freelance writer, Larry O’Connor.
Capital Gains: In what ways has the "Fly Lansing" campaign changed people's perception of Capital Region International Airport?Robert Selig: We started the "
Fly Lansing" campaign originally back in 2003, and it has really served as a constant reminder or encouragement for the mid-Michigan public about the importance of using their own airport.
From that process, what evolved is the
Regional Business Travel Trust, which is now a group of approximately 220 businesses and corporations that are directly focused on working with the airport, promoting the development of the airport and recruiting air service to mid-Michigan.
CG: How will becoming a U.S. Customs port this summer contribute to the Capital Area's overall economic vitality?RS: Mid-Michigan traditionally has not focused much on global or international trade. So, what this does is provide the facilities to process international trade. But it also provides the training and education opportunities that will allow a business in mid-Michigan to diversify and focus on generating revenues, and not just focus on reducing expenses.
What we're trying to do through the Port Lansing process is say, "What a minute, perhaps as part of your strategic business plan, there's another option you can take before you start laying everybody off. Maybe you can expand the marketing and sales of your products and, in this downturn in the economy, you can strategically focus on growing and expanding your business instead of reducing it."
CG: Any tangible results so far?RS: It's still a growing process. The
Chamber of Commerce is working with us on educating and getting people to focus in this area. There are a number of air cargo processes we are working on, too. We don't have all the facilities exactly in place yet, but they will be in place here in the next four to six months. We are beginning to clear air cargo in and out of here.
The Chamber of Commerce
, along with international trade people, [and the] supply chain management people from
Michigan State University, have come together. They have begun having monthly presentation meetings, the Global Business Lunches, where they pick a topic every month that allows people to come in and get some education on a particular topic, but also meet with
Department of Commerce folks and international trade folks that are available in the region to help them explore how to expand that business plan.
CG: What is the strategy for dealing with fluctuations in fuel prices and other adverse issues facing the travel industry?RS: When we looked at reviewing our strategic plan, we quickly figured out that we had to diversify our business. Federal regulations require us to provide a certain level of fire, police and other services, so we can't cut our costs. In some way or another, we had to look at developing new business lines to develop new revenue.
We focused on diversifying in the international side of the aviation business, which means we would apply for a U.S. Port of Entry and also apply for a foreign trade zone, and we would look at new business lines that would be an extension of our existing business lines in air passenger, cargo and corporate aviation.
What we've been doing is investing our mill-levy dollars—the tax dollars we receive—for airport development and capital improvements. We have been channeling that money into building facilities.
CG: How has the airport coped with the loss of Allegiant and Delta airlines?RS: We’ve had to absorb both the loss of Allegiant and
Delta—though Delta returned in name with the recent merger with Northwest. The original Delta service we did have—to Cincinnati and Atlanta—is also gone. Now all that is left is the original
Northwest service [with] six flights a day to Detroit and one flight a day to Minneapolis, as well as four flights a day to Chicago.
We’re adding the two flights on
Air Azul—the non-stops to New York and to Washington D.C.
The New York and Washington D.C. areas are two of our top business markets, so all indications are that should be a very successful service.
We didn’t lose the (Allegiant) flights because of a lack of interest. We lost the flights because Grand Rapids economic development folks had more money. They wrote them a check for a million bucks and they took the million bucks [and] moved 60 miles [west]. It had nothing to do with the community. It had nothing to do with mid-Michigan’s support of the facility or the service. In fact, mid-Michigan really stepped forward and put the Allegiant name on the map from the very beginning.
CG: What does the future hold for other airlines similar to Air Azul coming into Capital Region International Airport?RS: Our big push right now is the federal inspection and U.S. Customs station, which should be completed by the end of May. So, we're in the process of marketing that to international airlines. We hope within the next six months to be able to announce a new international air service to Mexico and the Caribbean.
Also, we are in conversation with airlines about the replacement of Allegiant’s air service to Florida. We're hoping to offer that by the end of the year as well.
CG: Any chance of offering air service to Europe?RS: We have talked about that. Originally, we did have a group called the Shamrock Express that was going to fly to Ireland and they had made that announcement a year ago. But the (soaring) fuel costs threw that into the dumper.
If the fuel costs hang in there—and that's what all the airlines are hedging their bets on right now—the airlines are going to get more comfortable that there is some stability in the fuel market and they will be more encouraged in bringing back service.
CG: What is the potential for business development outside the immediate airport area?RS: The other thing we are doing that would stimulate development is looking at expanding our commerce park. We are re-naming that the Port Lansing Global Logistics Center. We are looking at recruiting logistics companies, distribution companies, to come in here to locate in a foreign trade zone or do logistics throughout the region. Hopefully, they would tie into air cargo somehow.
We have this land—there's probably 120 acres out there or more—that is immediately developable. Beyond that, there are another 500 acres that have not been made developable yet, meaning that it doesn't have access to sewer, water and roads. So there is an opportunity for the growth for those businesses supporting that type of distribution.
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Larry O’Connor is a freelance writer based in mid-Michigan and has written on Michigan State’s multi-tentacled links into China and the Capital Area’s thriving adult hockey subculture for Capital Gains.
Dave Trumpie is the managing photographer for Capital Gains. He is a freelance photographer and owner of Trumpie Photography.
Photos:
Capital Region International Airport Executive Director Robert Selig and scenes from the airport
All Photographs © Dave Trumpie