Soaring fuel costs could give Red Deer Regional Airport’s bid to land a low-cost air carrier, says the airport’s CEO.
“With gas prices the way they are and traditional airports raising their rates it just makes the Red Deer airport even more attractive,” said Graham Ingham.
Airport fees at the Edmonton and Calgary airports run around $50 per passenger. In Red Deer, it is just over $2 per passenger.
“There is a price point that you hit, where it doesn’t matter if you are a low-cost carrier or not, people just can’t afford it,” he said.
“That’s why airports like Red Deer and Abbotsford are so important to the success of these low-cost carriers.”
Being able to offer a ticket for nearly $50 less on landing fees savings alone could be the difference in some people choosing to fly or not.
The new president of budget airline Swoop warned travellers earlier this month that ticket prices will have to go up to cover at least part of the rising cost of fuel.
Swoop is WestJet Group’s ultra-low-cost subsidiary and has been named as one example of the kind of passenger service that could find Red Deer an attractive destination. New airline, Lynx Air and Flair Airlines are others with a similar business model that is seen as a good fit in central Alberta.
Air Canada is also expected to announce fare increases to compensate for fuel costs and general inflationary pressure as well as the financial impact of sagging business travel.
Meanwhile, construction on the first phase of a major $18 million redevelopment plan is expected to get underway soon.
A project to widen the runway to 45 metres from 30 metres is expected to begin in mid-May and be completed in October. The airport taxiways and paved aprons are also being upgraded.
Other initiatives are also being considered.
“We have some additional federal grants we’re chasing right now, which, should they come to fruition, would be really cool.”