Jim Fair
The $120 million GSP terminal improvement program, Wingspan, continues with steel girders in place that will anchor the terminal's expansion adjacent to the daily parking site.
Jack Murin, GSP Vice President, gave commissioners the black and white of bringing the low-cost carrier to the Upstate.
The economic report showed, since Southwest’s announcement, May 2010, it was coming to the Upstate, GSP revenue is up $8.1 million (46 percent), enplanements grew nearly 50 percent and net annual income is up $5.4 million.
The impact study claims GSP adds $170 million in local income, its operations and visitor spending supports 9,528 local jobs and tax revenues increase $113 million as a result of GSP.
“This measure of effectiveness is well worth it,” Murin said. “The bottom line is net income. We had a financial payback in less than one year.”
GSP waived $2.95 million in fees, spent $1.1 million for a gate buildout and $800,000 in marketing. “It shows if you incentivize and not subsidize it is well worth the investment,” said Dave Edwards, president and CEO, of GSP.
The “Southwest effect” also brought down airfares originating from GSP beginning half a year before the airlines serviced its first plane in the Upstate. GSP airfares averaged $141 more than other carriers in the fourth quarter of 2000 and averaged only $20 more compared to the same quarter in 2012.
“GSP ‘s gap between our airfares and others dropped dramatically,” Murin said.
Enplanements are forecast to be 927,000 this year and 950,000 in 2014, just as the $120 million terminal improvement project is winding down. After 2014 enplanements are expected to steadily over one million annually.
Southwest is eliminating its daily departure from GSP to Orlando on Aug. 11 and one of two flights to Baltimore International ends Sept. 28. The airline will maintain two daily non-stop flights to Chicago Midway, Houston Hobby and Nashville.
Edwards said he has had discussions with Southwest entering the Charlotte market, replacing AirTran it acquired in 2010 for $1.4 billion worth of cash and stock. Southwest offers six daily nonstop flights to Baltimore/Washington International airport, Chicago’s Midway airport, Houston’s Hobby airport and Orlando.
“We’ve seen we’ve lost some of that traffic from Gastonia going to Charlotte,” Edwards said.
Further discussion will be held, Edwards said, with Southwest concerning the airline giving up one of its gates. “We could benefit with the USAir/American merger and get the American gates aligned,” Edwards said.