Flying High: Cape Air closes out another growth year

Now in its sixth year ferrying travelers between Cape Girardeau and St. Louis, Cape Air in 2014 experienced 6,511 boardings -- people flying from Cape Girardeau to St. Louis -- with 5,833 making the reverse trip.

That compares to 6,431 boardings in 2013, and adds up to a nearly 37 percent increase in boardings since full-year service began in 2010.

The $50 one-way fare for the one-hour flight between Cape Girardeau and St. Louis -- at an altitude of 3,000 to 7,000 feet, depending on conditions -- is attractive, and Bruce Loy, manager of Cape Girardeau Regional Airport, said he doesn't think the recent drop in gasoline prices has dented Cape Air's appeal.

Adding to the lure is free parking at Cape Girardeau Regional Airport, compared to daily parking rates of up to $20 at Lambert-St. Louis International Airport. Also, security screenings for a handful of passengers in Cape Girardeau may be somewhat more tolerable than the lengthy lines often experienced at a larger airport.

Loy attributes the carrier's success to Cape Air's "excellent customer service" and its "completion rate."

"During the month of December, for instance, we had 100 scheduled landings, and we had 100 completed landings. [Cape Air's] completion rate has been phenomenal, excellent. Their being on time has been really, really good," Loy said.

"Our total occupancy factor for the year is typically 60 to 65 percent, which is considered good. With nine seats, that's pretty good," Loy said, adding, "Our average load factor for 2014 was 62 percent."

The nine seats to which Loy referred is the passenger capacity of the airline's Cessna 402s that Cape Air manages, making 24 flights a week between Cape Girardeau and Lambert-St. Louis International Airport -- four daily roundtrips Monday through Friday and two roundtrips Saturday and Sunday.

Cape Air's growth in Cape Girardeau is emblematic of the company's development.

"Cape Air has grown significantly over the last three years, with 8 percent growth each of the last three years. We have been consistently profitable the last seven years; 2014 was our greatest growth year, with 10 percent growth ... ," said Erin Hatzell, Cape Air regional marketing manager.

As a privately held company, Cape Air isn't required to disclose financial results.

The four-year contract with Cape Air expires Nov. 30, and Loy expects the U.S. Department of Transportation to issue a request for proposal to carriers for providing Cape Girardeau's air service as of Dec. 1.

This is likely to be done through the department's Essential Air Service Program.

"The U.S. DOT provides service between Cape and St. Louis, and the DOT will put out a bid package to all carriers that may be interested in providing services to Cape. We'll review all proposals, and get back to the DOT on what we feel would be best for our market," Loy said.

The bid process takes into account four criteria, according to the DOT website: a carrier's service reliability; business relationships with larger carriers at a hub; interline arrangements with a larger carrier at a hub, meaning the transfer of passengers and baggage from one carrier to another using a single ticket or check-in procedure from departure to destination; and community views.

Cape Air has interline agreements with American Airlines, Delta Air Lines, Jet Blue Airlines, United Airlines and US Airways.

"Cape Air has every intention to bid on the Cape Girardeau contract once it is open for bid," Hatzell said.

The Essential Air Service program was established in 1978 with the passage of the Airline Deregulation Act, which gave airlines near-complete freedom to determine what domestic markets to serve and what fares to charge.

Its mission is to guarantee small communities' access to the national air transportation system, and it subsidizes commuter airlines serving about 163 rural communities nationwide, the DOT said.

Loy said certain stipulations come with EAS, some of which are linked to the cost of service.

The number of boardings also could affect funds for which the airport may be eligible -- money may come directly from the Federal Aviation Administration or from the Missouri Department of Transportation; MoDOT aviation administers state and federal funding for airport maintenance and capital improvements.

"We work with MoDOT aviation for a lot of our funding," Loy said. Projects range from the recent construction of 10 T-hangars, re-striping the airfield, control-tower upkeep or acquiring snow-removal equipment or firefighting vehicles.

In addition to Cape Girardeau, Cape Air flies from St. Louis to the Missouri towns of Kirksville and Fort Leonard Wood, to the Illinois towns of Quincy and Marion and to Owensboro, Kentucky.

Overall, Cape Air operates a fleet of 80 Cessna 402s, annually flies more than 735,000 passengers, and serves 44 destinations in five regions in the U.S., the Caribbean and Micronesia.