Myrtle Beach International Airport reduces landing fees

By Michelle Carolla
WBTW Reporter
Published: August 12, 2008

During the Horry County Council meeting Tuesday evening, Council Chair Liz Gilland announced the Myrtle Beach International Airport will lower its landing fees from $1.97 to 50 cents per 1000 pounds of weight. The new program starts September 1.

The county will absorb the 1.2 million dollar cost, saving the airlines the money.  And, for the second year, in an effort to bring winter traffic, the county will suspend all landing fees for December, January and February. The fee suspension will cost the county another 400,000 dollars.
The county is also considering more incentives for new service airlines and waiving all fees for international flights.  The county is also examining the idea of creating an airport authority with members from the surrounding cities and the county.
   
Senator Luke Rankin( R) Horry County and Representative Alan Clemmons ( R ) Myrtle Beach, presented the idea of an authority to the council during the meeting.  At the end of this year’s legislative session, Rankin introduced legislation to the senate, but it didn’t pass.
   
Senator Rankin said the airport needs a transparent governing body and a business model to attract airlines.  ”We need to try to incent them financially with a vision of tranparency and a vision of a marketing standing point where it’s not them carrying their own weight or trying to pitch our area, but out area joining them and trying to make it more competitive,” said Rankin.

Rankin said the airport needs the most competitive structure and efficient use of taxpayer dollars.
   
Clemmons said, “It’s not solved with lower landing fees on and of itself, it’s not solved with better marketing of the facilities, in and of itself, it’s not solved by having a prettier face on the airport in and of itself, these are all components of the package,” said Clemmons.

The county was given the opportunity to appoint four people to the proposed authority. They were unable to decide on whom to appoint during the council session and deferred the vote to their next administration committee meeting August 21st.

Clemmons said in an area based on leisure travel, it’s tough to entice airlines to fly out of Myrtle Beach. He said the airport should be used as an efficient economic tool.

For a complete look at the proposal and landing fee details read the county press release below:

COUNTY ANNOUNCES NEW AIR SERVICE DEVELOPMENT
PROGRAM AT MYR

Conway, South Carolina –Today, Horry County together with the Myrtle Beach Area Chamber of Commerce and Myrtle Beach Golf Holiday, announced a new air service development program for the Myrtle Beach International Airport (MYR). This new program will benefit all current airlines servicing Myrtle Beach, encourage air service to new markets, and grow our international travel markets. The County has offered incentives for new air service since fiscal year 2007.  This new program will begin September 1, 2008.

During the Horry County Council meeting, Liz Gilland, Horry County Council Chairman, announced that the landing fees at MYR will be reduced from $1.97 to $.50 per 1,000 lbs landing weight, which will benefit all airlines currently servicing Myrtle Beach at an estimated cost savings to the airlines of $1.2 million. “It is extremely important that we let Myrtle Beach Direct Air, Spirit Airlines, US Airways and others know that we appreciate and support their business and that they are an important part of our community,” stated Liz Gilland. “It is also great to be standing here side-by-side by with the Chamber and Golf Holiday knowing that we are all working jointly for the betterment of our community and marketing our area as one of the premier tourism destinations in the world.”

In an effort to overcome the challenges of the seasonality of the traffic at MYR and encourage stronger year-round service, MYR will waive aircraft landing fees for all regularly scheduled passenger aircraft operations for the months of December 2008, January 2009, and February 2009.  The estimated cost savings to the airlines is $400,000. This will be the second year of the seasonal landing fee waiver from MYR.

The county has also developed two new incentive plans for the airlines. Incentive Plan A is a new incentive plan for newly scheduled non-stop, round trip service between MYR and any airport where MYR is not currently served. In order to reduce an airline’s risk while developing new service to MYR, the airport will offer air carriers the option of being invoiced at a rate of $2.00 per available seat, in lieu-of being invoiced based on the rate formula contained in the standard air carrier agreement. The airport will calculate the fees using both methods and invoice the airline the lower of the two amounts. To be eligible for this option, the air carrier must not discontinue any service to any airport it currently serves from MYR.

Incentive Plan B is a new incentive plan for service to international markets, where MYR will waive ALL fees, to include landing fees and terminal rents, for any scheduled non-stop, round-trip service between MYR and any international destination, including Canada, where MYR is not currently being served.

“It’s definitely not typical in today’s market, that an airport can and will offer such incredible incentives, but we are willing to give it a try.  In early spring we will get back together to see if we can sustain these extremely low incentives and continue to offer the airlines these same cost saving measures,” Gilland said. “A potential $1.6 million contribution from our airport enterprise system is quite an investment in attracting new service to MYR.”

For more information about the Myrtle Beach International Airport and the airlines servicing the airport, please log onto http://www.flymyrtlebeach.com.

Air Service Development Program Fact Sheet
(Effective September 1, 2008 through Fiscal Year Ending June 30, 2009)

To encourage air carriers to establish service to new markets, encourage additional air service during certain months of the year, and to further partner with and assist the Grand Strand community’s air service marketing efforts, the Myrtle Beach International Airport offers the following assistance programs:

LANDING FEE REDUCTION FOR ESTABLISHED SERVICE

The landing fee will be set at $0.50 per 1,000 lbs of Gross Certified Maximum Landed Weight (GCMLW), which is a 75% reduction. Previous landing fee was $1.97.
SEASONAL LANDING FEE WAIVER

In an effort to overcome the challenges of the seasonality of the traffic at MYR and encourage stronger year-round service, the Myrtle Beach International Airport will waive aircraft landing fees for all regularly scheduled passenger aircraft operations for the months of December 2008, January 2009 and February 2009.  This will be the second year of the seasonal landing fee waiver.

INCENTIVE PLAN A – FOR SERVICE TO NEW DOMESTIC MARKETS

A new incentive plan for newly scheduled non-stop, round trip service between MYR and any airport where MYR is not currently served. In order to reduce an airline’s risk while developing new scheduled non-stop round trip service between MYR and any airport where MYR is not currently served with similar scheduled non-stop round-trip service by any air carrier, the Myrtle Beach International Airport will offer air carriers the option of being invoiced at a rate of $2.00 per available seat for the common use terminal area fees and security fees associated with such eligible new service, in-lieu of being invoiced based on the rate formula contained in the standard air carrier agreement.  (This plan allows an airline to calculate the not-to-exceed amount of fees paid to the airport in advance, rather having the fee depend on, not only the airline’s traffic, but also the number of airlines and the total traffic at the airport. The airport will calculate the fees using both methods and invoice the airline the lower of the two amounts.) To be eligible for this option, the air carrier must not discontinue any service to any airport it currently serves from MYR.

INCENTIVE PLAN B – FOR SERVICE TO INTERNATIONAL MARKETS

The Myrtle Beach International Airport will waive all landing fees and terminal rents for any scheduled non-stop round trip service between MYR and any international destination, including Canada, where MYR is not currently served with scheduled non-stop round-trip service from any carrier.

GENERAL REQUIREMENTS – INCENTIVE PLANS A & B

1.  An air carrier will not be eligible for credit during any calendar month in which the provider is past due on any payment to the airport of any valid charge.

2.  Service must be provided with aircraft having 50 or more seats