Porter Airlines and Hamilton Airport this week announced infrastructure investment to YHM in addition to service to four Canadian cities; Calgary, Vancouver, Halifax and Edmonton. Robert Kokonis, president and managing director of Toronto-based AirTrav Inc., shares his thoughts on both moves with Open Jaw.
Q. Airlines have come and gone from Hamilton Munro Airport. Will Porter be any different?
A. Porter has strong marketing and that should help attract passengers. Many Hamilton-area residents have grown tired of the long journey to YYZ, particularly with increasing road traffic. Demographics in the Greater Hamilton Area (GHA) have changed tremendously since WestJet’s first foray into YHM in the early 2000s. The expansion of higher paying jobs in the medical, education, and R&D sectors, along with many work-from-home professionals who moved from Toronto to Hamilton during the pandemic, means that Porter could generate higher average yields (ticket prices) than in past years. Low yields have often been a criticism of the YHM market. Then again, Porter is not coming in as a discount carrier, so through its service model, it should be able to tap into this stronger Hamilton economy.
The community and travel trade need to rally behind Porter’s new Hamilton service. Porter is not a low-cost discount carrier. It’s a value-add full-service model, with varied seating zones and different fare bundles throughout economy class, will appeal to all passenger types.
The 132-seat Embraer E2-195 jet is probably the right size for YHM and for the targeted market demographic. Passengers who have never flown this aircraft type will be impressed with how quiet it is, and will appreciate being no more than one seat away from the aisle with the jet’s 2 x 2 seating configuration.
Q. Porter says it has plans to add more flights in Hamilton. Will there be enough demand?
A. Porter’s initial set of domestic destinations represent 3,564 weekly departing seats. Filling these seats should be achievable based on a GHA urban population of 800,000. Yes, the number of seats should grow as Porter is looking to add U.S. transborder service later this year. But demand exists I believe, though it is dependent on the specific destinations Porter has under consideration.
Q. Is Hamilton Munro an underutilized resource?
A. For passenger traffic, 100%. For air cargo, no. YHM is the third busiest cargo airport in Canada.
Q. How will this deal impact the city of Hamilton and the passenger airline sector?
A. Porter’s arrival in Hamilton will represent a significant, positive economic impact for the GHA in terms of economic output, GDP, labour income, and jobs. Getting from “here to there” underpins economic growth, and the presence of Porter should act as an attractant to businesses and provide the city with a strong, new tool in their economic and tourism development toolkits. Like attracts like. If Porter, the airport, and region can demonstrate sustainable success in supporting these new flights, additional air carriers may be tempted to give YHM service a try.
Q. Does Porter’s new service and expansion of Hamilton Munro’s passenger flights represent a threat traffic that leaks to western New York state?
A. Porter’s domestic flights represent no threat to Niagara Falls International Airport or Buffalo Niagara International Airport. Should Porter later add flights to say, U.S. transborder sun destinations, that would take some traffic away from both the New York State airports as well as from both Toronto Pearson and Region of Waterloo International Airport. However, the impact to any one competing airport should be minimal.
Also important to bear in mind are the onboard service elements such as free fast WiFi and a premium snack and beer or wine for all passengers – regardless of fare paid – should be attractive to new and returning customers. Porter is further differentiated from traditional discount carriers in that it has a frequent flyer program, VIPorter, and a newly launched co-brand credit card, the BMO VIPorter Mastercard. Both of these items should help Porter make the case that passengers flying out of Hamilton will not have to forgo the mileage earning opportunities of competing full-service carriers out of Toronto Pearson.
