Regional Airports Feasibility In 2025 - A Comparison on Competing Travel Modes

Introduction

The global economy is recovering after the recession caused by the novel Covid-19 pandemic. International air travel came to a standstill after closing borders, leading to large losses and limited growth for international and regional airlines. However, global air travel is expected to grow (Gelhausen, Berster, and Wilken, 2021). However, the maturity of the demand dictates the growth. In regions like the United States, where there is a high likelihood to fly, the demand is mature; thus, the growth rates are expected to be low compared to other markets. However, changes in the strategic approach of air travel as a strategic instrument in the local economy have led to rapid or planning of more integrated transport systems that are not heavily reliant on air travel for connection between major transport hubs.

In line with the National Plan of Integrated Airport System (NPIAS) (2021), the development will subsequently focus on the core transport hubs leading to such airports while the traffic in regional airlines is expected to decline to be allocated lower capital investment. Consequently, to complement the regional air traffic, resources will be dedicated to the development of infrastructure and operational facilities of other modes of transport, such as rail, pipeline, and the road, to avoid latency in the flow of goods (Goyal, Reiche, Fernando and Cohen, 2021). However, the capacity building to accommodate growth in demand by 2025. The capital investments required for infrastructure expansion and capacity building will result in higher operating expenses that will be transferred partly to the customers.

Delaware Regional Airlines Competitiveness with Other Modes of Transport

The Delaware Valley Regional Planning Commission (DVRPC) is responsible for the Philadelphia metropolitan area and is accountable to the Federal Aviation Administration (FAA). DVRPC is responsible for intercity and intercounty planning and vision of the growth of the Delaware region. The Delaware region includes Bucks, Chester, Delaware, and Montgomery and the cities of Philadelphia and Burlington (DVRPC, 2001). The agency provides technical assistance and services, and research to determine demand changes and market trends. It also fosters cooperation among constitutes, facilitates operations of the private sector, and ensures public awareness.

The FAA collaborates with the NPIAS to identify core airports to identify public-use airports that are core to the transport hubs. Commercial service airports and general aviation airports meet the NPIAS and those identified by DVRPC. The NPIAS controls 65% of the public-use airports. Airport functions of NPIAS are to oversee operations and raise the capital required to maintain or develop the airports (NPIAS, 2020). Being enlisted under the NPIAS led are eligible for developmental funds from the AIP, PFCs, and reinvestment of airport profits. The DVRPC operates under the Regional Airport System Plan (RASP), which measures airport facilitates demand, airport facilities, and all necessary enhancements.

In 2020, the DVRPC revised the rasp for the Delaware region in response to the market, physical, and system policy changes at the regulatory levels and community integration levels. For example, there has been continued growth in urbanization and the concertation of a population in the suburbs (DVRPC, 2001). The demand increase has led to the growth of the market needs that have not been matched by the development capital allocated to increase the capacity of the existing airports. The incongruence between the demand for air travel and the capacity...

Road Transport. Road transport in the Delaware region offers access to the growing suburban population. The government has established an intercounty network dedicated to providing local intercounty services. Road transport serves as the primary mode of commute for the local population. Road transport offers competition to air travel in the Delaware region due to the accessibility, low capital requirement for development and maintenance, and interconnectivity of the Delaware region. Notably, road transport offers many benefits to commuters, such as instantaneous movement of freight and passengers, unlike air travel which requires planning (Sentance, 2014). To meet the growing transport demand in the region, DVRPC prioritizes the development of transport mediums to derive the highest economic value from the developing estates in the region. Therefore, road transport is the leading competitor to air travel in the Delaware region compared to air travel and is likely to remain this way past 2025.

The comparative advantage of different transport modes relies on the connectivity of transport modes. At the regional level in Delaware, air travel facilitates business and is not the primary mode for residents. However, rail and road transport presents many benefits to users, such as low costs, accessibility, and urgency, that are not available while using air transport. Consequently, the recovery from the impact of COVID-19 by 2024 postulates a decline in the growth of air travel compared to the growth expected before the pandemic (Gelhausen, Berster, and Wilken, 2021). The capital and operational costs for the maintenance and expansion of the current airports also present a challenge due to the lack of complementary capacity for the region's population growth, making road and rail transport the preferred areas of expenditure…