Despite presence of four major airports, many area businesses choose local services
By: Madeline Bayliss
Landing companies and executives to relocate or stay in Mercer County depends in part on how they can take off for business outside the county.
Mercer County is sandwiched between two major air transportation areas: New York and Philadelphia. With four major airports (Newark, Kennedy, LaGuardia and Philadelphia) available at the ends of this corridor, why do businesses choose local service?
In many industries, the largest providers do not always meet the needs of all customers. The same is true for certain types of flyers and types of situations where the local services in the county better fit the requirements.
Corporate travel is down nationwide. Overall, Mercer-area take-offs and landings are lower than last year. At Trenton-Mercer Airport, the total take-offs and landings in 2001 decreased to 125,000 from the 2000 level of 150,000.
"This year is on track to reach the 125,000 level again." projected Justin Edwards, director of the airport.
All three local airport managers believe the local decline is less than in other regions. In fact, they have seen an increase in private corporate flights, charters and helicopter trips.
A private developer is building nine new hangars at Trenton-Mercer to meet increased demand from corporations. There are nine companies as tenants of existing hangars. An additional 25 to 30 companies benefit from these facilities as sub-tenants of the current corporate fleet managers.
The one commercial airline at Trenton-Mercer, US Airways Express operated by Shuttle America, added a route from Trenton to Pittsburgh in October. According to Mr. Edwards, this contributed to a change in passenger departures from 1,800 in September to 2,350 in October. These routes represent about 5 percent of the traffic handled at Trenton-Mercer.
Kurt Neinstedt, regional sales and marketing manager for Shuttle America, said that about half the travel on this new route is business oriented. Some is direct to Pittsburgh. Some takes advantage of having a local connection to the 105 other destinations served by Pittsburgh. Their other route, to the regional airport of Bedford outside of Boston, is used predominantly by business.
Time, convenience, safety and alternative aircraft have been priorities of local business travelers for many years. In the tougher, post 9-11 economy, however, these features have taken on new meanings.
The holidays are a reminder that more people traveling means allowing more time to get to the airport and through the lines inside. Since 9-11, factoring in more time even before getting on the jetway is now an everyday concern.
Newark Airport was ranked in the top 10 for delays in air travel in a recent poll cited by Mr. Edwards.
That’s not the case at the local airports.
County officials, owners of Princeton Airport and US Airways local management were unanimous in citing time as an advantage of local services. "Within a half hour, you can be at the airport," said Herbert K. Ames, director, Mercer County Economic Development. The other airports are 50 miles away. The same major roads leading to the larger airports provide easy access to the local facilities.
"You can arrive 20 to 25 minutes before the flight and still have time to check-in and go through security checks," remarked Mr. Neinstedt.
"It’s the same amount of security, but not as many passengers," noted Mr. Ames.
The combined drive and processing time for local-based travel is only 25 to 30 percent of that involved in using one of the larger airports.
Mr. Neinstedt added the little-known fact that air speed limits in the Northeast corridor eliminate the typical advantage of faster, larger jets. Processing time for aircraft is also less at the county airports.
"You aren’t sitting on the ground," he said. "You never hear ‘You’re number 2 for take-off.’"
Increased security measures for airfields and aircraft have made the local airports more attractive to private pilots. Mark Straszewski, manager of the Trenton-Robbinsville Airport, explained that after 9-11, the larger airports prohibited pilots from driving on the runway, parking next to the airplanes and keeping tools and supplies on the ground while flying. Immediate access to aircraft is still possible at Robbinsville.
Time is also a critical factor when local air service is providing only one leg of a trip. Helicopters are often the transportation mode of choice to reach New York City or the NY-NJ major airports. Princeton Airport’s Naomi Nierenberg pointed out that Newark can be reached in 15 to 20 minutes and Kennedy in 20 to 25 minutes.
Ms. Nierenberg recalled the experience of an international cosmetics company that needed to transport 20 executives from Europe for meetings in the area. Helicopters picked up the visitors at Kennedy and brought them to Princeton. To accommodate their need to meet prior to the local appointments, Ms. Nierenberg transformed a hanger into a meeting facility, complete with white linen tablecloths. Later that same day, helicopters connected the executives to their return flights to Europe.
There are a number of companies that operate their own heliports. Merrill Lynch has one at its Plainsboro campus. According to AirbaseOne, an airport database, organizations maintaining separate heliports include St. Francis Medical Center, PSE&G, Atsion, Congoleum, Carnegie Center, Wyeth-Ayerst, ETS, Dow Jones, Sarnoff, Firmenich, Hillside Farm and Mid-Hudson Helicopter Service.
Most private heliports do not maintain their own fueling, drawing that business to the local airports.
Same-day turnaround seems to be a major promotion for the Trenton-Bedford route. Mr. Neinstedt observes that the average flyer is male, 25 to 45 years of age, carrying a laptop for a daytrip or one overnight. "These customers are usually salespeople or consultants who have a Boston office or client. The airport up there is usually just 5 to 10 miles away from their office."
Construction near Boston’s Logan airport has caused longer ground trips for those who fly into that facility. "The Big Dig [for the Boston Tunnel] has done more for our business than any advertising. Business people don’t want to take 4 to 6 hours for traveling for a one-day trip."
The same is true for business people who fly private planes, as seen by Mr. Straszewski. "If they can fly an hour and a half instead of driving 3 to 4 hours, they will usually choose to fly."
Shuttle America’s Mr. Neinstedt was aware of a pharmaceutical company that moved a department to the county because of how much commuting to Boston was done out of that group.
Turnaround time affects aircraft as well. "Princeton’s rapid refueling capability is a major benefit," said Princeton Airport’s Ms. Nierenberg.
In business terms, lost time has an opportunity cost. The local airports house corporate and executive planes as well as the fractional-time aircraft and charters that serve the need for flights not held up by any other demands but the schedule of the people flying.
Often these are executives. The Mercer County area is known as home to many individual executives and as the headquarters location of numerous firms. The value of top-level time was cited by a number of local business people as the appeal of private air travel made possible through the local facilities. They also spoke of the sense of urgency needed in today’s tough business environment. An executive is more often being brought to the client to solve a problem or close a deal and often on short notice.
Mr. Ames went beyond the work-time factor. "Corporate executives aren’t just thinking about themselves and where the business plan is going," he said. "They are thinking about the people flying for them and flying in to see them. Convenience and giving back more personal time builds positive relationships with employees and clients."
One of the conveniences associated with local travel is the ease of parking. Close to the terminals and free, parking becomes a pleasure rather than a struggle. "It’s what flying used to be many years ago," remarked Mr. Neinstedt.
Even if the local airports can recreate the benefits of long ago, simple operating rules are long gone. The focus on safety of facilities, pilots and passengers has prompted the need for upgrades at the airports. Princeton has just completed a $6 million improvement. In turn, the enhancements are expected to make the airport and its multiple services more attractive to businesses and individuals.
The county has been evaluating a number of considerations since last year in deciding whether to make other improvements at Trenton-Mercer airport. The environmental impact study has just been submitted to the FAA.
There has been discussion of an economic impact study. The push for expanding the foreign trade zone in Trenton may weigh into review of the area’s transportation system.
According to Charles Chambers of Global Aviation Associates in a speech delivered to the FAA in 1999, "The State of New Jersey found … that general aviation airports are a major factor in relocation decisions for both small and large businesses. … It is clear that a general aviation airport with the right facilities will attract business."
Business results have suffered since that speech. Costs such as travel have been cut and the use of private aircraft scrutinized.
But when companies look at how to do business, serve their clients and be efficient, transportation and access close to their offices is considered critical. Ms. Nierenberg said that in the week before Thanksgiving two separate executives relocating to the area one from England and one from Atlanta made personal visits to the Princeton Airport. The proximity of the airport was a significant advantage.
"We have to help companies do business outside Mercer County with easier ability to fly in order to save them time and money," declared Mr. Ames. "We promote our mass transportation and air transportation together."
Local facility managers commented that experiences immediately following 9-11 have had an impact on location decisions. Stories of stranded travelers having to drive to their final destination have made proximity to other company facilities a more important element. If offices that need air transportation are retained by or attracted to the county, they may draw additional facilities as companies cluster their offices.
One recent study found that even without this factor, the airports fueled over $200 million in economic value. Direct and indirect jobs credited to air service in the late 1990s numbered 2,000.