Directors today agreed to support adding a federal inspections station, estimated to cost $5 million, that could allow flights to Latin America and the Caribbean. Vote in the POLL.
Lehigh Valley International Airport directors today moved toward putting meaning into the word “international” when describing local travel options.
Air passengers claim their luggage at Lehigh Valley International Airport. The airport is exploring building a federal inspections station to entice international travelers.
The endorsement from the board means officials at the Hanover Township, Lehigh County, airport can proceed with pursuing funding and obtaining project details for a customs station, estimated to cost $5 million.
Airport authority Executive Director Charles Everett said a customs area, which would require adding 20,000 square feet to the departure terminal, could be running in two years if plans fall in place.
“We just can’t cut our way to success,” Everett said. “There needs to be a growth element.”
The authority believes there is strong regional demand for travel to Latin America and Caribbean spots, immediate priorities for LVIA.
Airport officials estimate one million travelers bypass LVIA annually when flying to those destinations, instead opting for major airports in Newark, Philadelphia and elsewhere.
“This is an opportunity.” said board member Bert Daday, who is also chairman of an air service focus group established by the authority to promote ways of increasing business at LVIA. “We are Lehigh Valley International Airport. This would truly make it international.”
Everett listed Cancun, Mexico, among possible destinations.
Despite what its name entails, LVIA offers no overseas flights now. Flights to Canada in the past were arranged though a pre-approval clearance process.
The focus group says other segments that would benefit from overseas flights include local distribution centers with international cargo needs and college students interested in projects abroad.
Getting funding is critical for the cash-strapped authority, which has already agreed to cut services and positions in its 2013 budget.
Officials said a $1.5 million matching grant is available from the Pennsylvania Department of Transportation that can be used for an inspections station.
Additional funding would have to be generated by the airport authority while it satisfies other obligations. The authority is in the process of paying $16 million over four years to settle litigation with developers concerning land it condemned near LVIA.
Everett said one avenue is a $4.50 passenger facilities charge that is levied on every plane ticket at LVIA. That federally approved charge, used by airports nationwide for capital projects, has been in place at LVIA to build sound barriers to benefit nearby residents.
Everett said the airport would seek to extend that charge, which is set to expire in the coming years. It raises nearly $2 million annually based on current traffic.
The board also plans to lobby for federal funding. No formal action to accept or commit any money was approved today.
In the meantime, traffic continues to decline at LVIA.
The authority reported a 28.4 percent drop in passengers last month compared to November 2011.
So far this year, traffic is down 15.6 percent through November. LVIA has flown 667,102 passengers through last month, down from 801,832 at this time last year.
Much of the drop reflects the departure of Air Tran, now part of Southwest Airlines, which stopped flying at LVIA in August. Major carriers like U.S. Airways and United Airlines also report declines.