Seattle-Tacoma International Airport
The intensified competition with Alaska Airlines has seen the carrier add 20 previously unserved markets over the same period as it has refocused its activities in Seattle. Brand new destinations from Sea-Tac have included: Cancun, Charleston, Colorado Springs, Helena, New Orleans, Oklahoma City, Omaha, Raleigh/Durham, San Antonio, Steamboat Springs and Tampa. Alaska Airlines remains the pre-eminent carrier in the Sea-Tac market, a position it has held since the mid-1990s.
Critical juncture
“We continue to see growth above our expectations,” Reis notes. “That’s how fast this region is growing. But we are at a critical juncture where we have to make sure our airport can continue to serve the needs of this region’s growth that benefits business and leisure travellers as well as our entire economy.” The capital budget for the airport stands at $1.9 billion over the next five years. This includes the renovation and expansion of the North Satellite, a new international arrivals facility (expected in 2019), which will include a new passport control and customs facility that will make use of a new high-speed baggage system and a revamped centre runway. In addition, the Port of Seattle is working on a sustainable Airport Master Plan to look five, 10 and 20 years into the future. Projections see passenger traffic reaching 66 million by 2034.
These projects will help sustain future
air service growth and Sea-Tac has already secured two new airlines for 2016 in the form of regional carrier SeaPort Airlines, which will provide service to two cities in Washington State, and ultra- low-cost domestic operator Spirit
Airlines, which will commence twice daily services from Los Angeles from March 24, 2016 followed by twice-daily flights from Las Vegas from April 14, 2016. The airport is predicting a 5.5% rise in traffic for 2016, but with passenger demand far exceeding forecasts for the past three years, Reis says it could be as much as a 7% rise during the calendar year.
Industry changes
The aviation sector is much changed since Reis started out at the Port of Seattle in 1988, taking roles as general manager of commercial development at Sea-Tac and director of finance for the Port of Seattle as a whole before taking the position of deputy managing director at Sea-Tac from 2000 and latterly as managing director since 2004. “I have seen the industry change dramatically during my time at Sea-Tac, but airlines and airports have been co- evolving,” he says. “As airlines struggled after 9/11, the dot com bust and then the great recession, airports have had to respond to those dynamics. The airline business in the US is much stronger today than it has been for decades, and I think a stable, profitable airline business can only be beneficial for airports.” There is a sense that the airline- airport rivalry is becoming a thing of the past and that there is now more mutual respect between the two businesses to develop collaborative partnerships. “We have seen the improving
relationship between airlines and airports through our experiences working closely with Alaska Airlines and Delta Air Lines over recent years,” says Reis. “Whether this is at an air service development level or more senior
management level, we have seen the value of strong business relationships and take great pride in these.” Sea-Tac can point to a number of
developments in its recent history that measure the success of strong, reliable airline operations. Reis cites the arrival of Emirates Airline into the Seattle market as one example of the change in the global industry and how airlines have responded to the internationalisation of the economy, developing benefits for all concerned and fulfilling the interests of the airline, airport, stakeholders, consumers and local business region. “Emirates arrived at Sea-Tac in 2012 and was almost immediately successful; it upgauged that aircraft not long after, added a second daily rotation and maintains larger aircraft on those services,” says Reis. “Its loads are certainly good, and as far as we can tell its yields are too. A visit to the terminal to see the profile of the inward and outward flows on the Emirates service is dramatically tilted to India and south Asia and that is very reflective of the growth of our high-technology industry in Seattle and across the wider US.”
Reis has been succeeded at Sea-Tac by Lance Lyttle, who joined the Port of Seattle in January, 2016 as a member of the executive team reporting to CEO Ted J Fick. Lyttle brings with him a breadth of experience and knowledge of airport operations, having worked in Atlanta and Houston, where he led multi-year strategic development. He was previously chief operating officer for Houston’s three-airport system. Reis leaves a lasting legacy for Sea-Tac and the city of Seattle. It is in a strong position as a hub for two airlines that are showing no signs of slowing their growth. This has placed a growing importance on the city within the aviation system and is one of the biggest success stories in the modern US market.
Serving Seattle
With a regional economic impact of more than $16.3 billion in business revenue, Sea-Tac generates more than 171,750 jobs, of which almost 110,000 are direct jobs, representing more than $2.8 billion in direct earnings and $565 million in state and local taxes.
30 Routes News 1, 2016
routesonline.com
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