Can T.F. Green Jump Start the RI Economy?

Friday, February 24, 2017

 

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Will an expansion of T.F. Green jump start the economy?

Rhode Island's T.F. Green Airport announced the addition of Norwegian Air on Thursday, marking one of its biggest developments in recent history, by adding five affordable direct destination flights to Ireland and Scotland. 

As Rhode Island works to improve on its national business rankings and revamp a botched tourism campaign rollout, how big is this for the state?

"Expansion is huge for us," said Martha Sheridan, President of the Providence Warwick Convention and Visitors Bureau. "When we're bidding on a convention, we're most often on a list of three, five, seven cities, that a planner is considering. It's a competitive bid process with a RFP we respond to and part of that response is direct flight information."

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"So if there's a grid comparing Providence to say Pittsburgh and Baltimore -- the more service we can show as direct from T.F. Green the better chances we have of landing [the convention]," added Sheridan. "Now we can offer direct international service, and that's a game changer."

SLIDES: 7 Things You Need to Know About Norwegian BELOW

Airport and Norwegian officials have touted the direct jobs that the airline's arrival will create -- initially, 75 Rhode Island-based employees will be hired and that number is expected to immediately grow to 200. Additionally, direct jobs tied to the expansion are expected to create another 200

Potential for Growth

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Thursday marked the official announcement of Norwegian at Green. (Photo: GoLocal)

Rhode Island Airport Corporation President and CEO Iftikhar Ahmad appeared on GoLocal LIVE Thursday, and spoke to the impact of passenger growth -- and where the airport is looking next. 

VIDEO: See Ahmad Talk About RI BELOW

"Each passenger that comes in is going to have a direct spend of $977 dollars. If you were to multiply that by say half of those folks coming over, we are talking tens of millions of dollars of direct spend," said Ahmad. "But it's also for us -- in terms of economic development --  it is about creating the atmosphere where other people notice us. All of that is very exciting and hopefully we will see expansion."

Ahmad spoke to what he sees as next steps for Green. 

"Our strategy is to fan out into Europe. We need Toronto, whether that's Air Canada, Porter, or WestJet, we need Toronto," said Ahmad. "We need to go into Latin America, for medical tourism coming to our area. And also more importantly, [we need to] get into the middle-central of the United States and to western United States. I'm talking about Denver, Houston, Las Vegas, Phoenix, LA -- these are the places we need to go next."

"We're talking to airlines, and we're going to try and convince them to come [here]," said Ahmad.

Ahmad came to Green in September 2016, after having overseen significant growth while head of the Louis Armstrong International Airport in New Orleans. As Green reported:

Mr. Ahmad spearheaded an unprecedented period of growth in New Orleans. Under Mr. Ahmad’s leadership annual passenger traffic grew from 7.8 million passengers in 2009 to 10.7 million in 2015, representing an increase of more than 36%. These numbers are projected to surpass 11 million in 2016, which would mark a 42% increase over 2009. During that same timeframe, passenger travel at peer airports declined by 6.6% while New Orleans broke all its previous records.

He grew the total number of airlines serving New Orleans to a record of 15 having recruited 10 additional airlines since 2010. He also significantly increased non-stop flights from 28 to 57. Additionally, Mr. Ahmad secured new routes to Latin America, Mexico, the Caribbean, Canada and Europe.

 

Related Slideshow: Seven Things You Need to Know About Norwegian Air

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#1

Where can you fly direct from T.F. Green?

Five direct destinations were announced on Thursday -

Cork, Ireland

Dublin, Ireland

Shannon, Ireland

Belfast, Northern Ireland

Edinburgh, Scotland

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#2

How much are the fares?

The initial flights are truly $65, but the 10,000 allotted tickets sold out before 6 p.m. on the first day.

The fares are now $99 each way.

As RI Governor Gina Raimondo said at the press conference about the $65 fare - "it is just $12 an hour."

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#3

Will they be adding other destinations?

Yes, already one new route is coming online in the near future.

It is rumored to be to Norway.

And there are strong efforts by Rhode Island officials to encourage more direct flights to more European cities.

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#4

How many other Americans go to Ireland every year?

According to Irish travel officials, 1.4 million Americans traveled to Ireland in 2016. 

Ireland captured 10% of all the Americans traveling to Europe.

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#5

How many jobs will be created?

Initially, 75 Rhode Island-based employees will be hired and that is expected to immediately grow to 200. Additionally, direct jobs tied to the expansion are expected to create another 200.

Included in these first 75 are the flight crews. Pilots on average earn $120,000 to $250,000.

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#6

What is the weekly schedule?

•    Year-round service to Edinburgh from Providence: Flights will operate on Mondays, Wednesdays, Fridays and Sundays starting June 16; Service will be reduced on certain routes during the winter 2017/2018 season.  
•    Service to Belfast will be twice weekly from Providence as of July 2. Days of operations will change between the summer 2017 and the winter 2017/2018 winter season. 
•    Service to Dublin from Providence: Flights will operate five weekly flights starting July 2. Days of operations from Providence will change between the summer 2017 and the winter 2017/2018 winter season. 
•    Service to Shannon from Providence will begin on July 3 with twice-weekly flights. Days of operations will change between the summer 2017 and the winter 2017/2018 winter season. 
•    Year-round service to Cork from Providence will start on July 1 with three weekly flights. Days of operations will change between the summer 2017 and the winter 2017/2018 winter season. 

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#7

Why is this such a “game changer” for Rhode Island’s economy?

In the early 1990s, then-Governor Bruce Sundlun envisioned and realized a redevelopment and expansion of T.F. Green. The airport exploded. When Southwest Airlines came, the airport reached new popularity and transformed as a significant alternative to Logan, but over the past few years competition took its toll on Green.

Now, Sundlun's dream and vision of Green being an international hub is becoming real. The airport has the opportunity to be a spark to international tourism and business.

 
 

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