Routesonline: "Seattle on the Rise"

Link to article: https://www.routesonline.com/news/29/breaking-news/252326/seattle-on-the-rise-leaving-a-lasting-legacy-for-seatac/

Seattle is now on the route maps of ten air carriers from outside the Americas, including major brands like All Nippon Airways, Condor, Emirates, Hainan Airlines, Icelandair, Lufthansa and Korean Air which have added to long-standing routes from Asiana Airlines, British Airways and EVA Air. A lasting legacy for managing director, Mark Reis as he steps down from the helm during February 2016.

When Mark Reis turns out the lights in his Port of Seattle office in early February, it will mark the end of a 27 year career at the Port of Seattle and 18 at Seattle-Tacoma International Airport (Sea-Tac) during which time the west coast US airport has been transformed into the newest US major hub and not just a competitive domestic facility, but a growing international gateway into the country. 

In fact, last year it was the fastest growing major airport in the US, handling 37 million passengers and boosting traffic by 7.7 per cent and positioning it as the 13th busiest passenger airport in the nation. This year it is on track to exceed that growth with an expected 13 per cent annual increase in traffic. 

Over his eleven year tenure as airport managing director, Reis has seen significant change in Sea-Tac’s demographic within the US aviation system with over a dozen new international air services being introduced during this period, versus only a small number in the preceding years. 

“As the world has become more connected, Seattle’s biggest companies have become more globalised and focused on new international opportunities, so the demand for international connections has really ballooned here,” he toldRoutesonline during an exclusive interview this month.

“This has really influenced  our air service development strategy.  We have been working hard to match our network offerings with the business and leisure requirements of the city and greater Seattle region to bring the services they need and routes that can further benefit their development,” he added.

Seattle is now on the route maps of ten air carriers from outside the Americas, including major brands like All Nippon Airways, Condor, Emirates, Hainan Airlines, Icelandair, Lufthansa and Korean Air which have added to long-standing routes from Asiana Airlines, British Airways and EVA Air.

North American traffic at Sea-Tac has grown by just under a third over the last ten years, but intercontinental traffic has more than doubled during the same period.  Alongside the new foreign arrivals this has also been driven by growth from US carrier Delta Air Lines as it has moved away from a partnership arrangement with Alaska Airlines to develop its own hub operation at the airport. 

While other US majors have been closing hubs across the nation following industry consolidation, Delta has effectively made Sea-Tac the gateway for its flights into Asia, supplementing Tokyo Narita.  The carrier needed a hub on the US west coast following its merger with Northwest Airlines, and Sea-Tac’s geographical position means it can offer significantly shorter flight times for connecting passengers to Asia.

To support its increasing long-haul network across the Pacific from Seattle, which now includes flights to Beijing, Hong Kong, Seoul, Shanghai and Tokyo, Delta has also been growing its domestic activity at Sea-Tac to provide additional feed for the intercontinental services.  Historically this had been provided by Alaska Airlines, the largest operator at Sea-Tac, but Delta is now seeing the value of flying into Sea-Tac on its own equipment.  Over the past two years Alaska Airlines has grown its Sea-Tac network capacity by 19.8 per cent, while Delta has almost doubled its offering with growth of 96.5 per cent.

“We have seen a shift with these two carriers that has brought great benefits for Sea-Tac and our community. Delta’s growth has brought enhanced network connectivity, while Alaska Airlines has become a stronger competitor in the process,” said Reis.

Around 40 new Delta markets have been added at Sea-Tac since 2013, including three brand new destinations for the airport: Hong Kong, Jackson Hole and Shanghai.  This has seen its peak day departures rise from just 38 in August 2012 to 129 in August this year and an expected further rise to around 148 in August next year, based on published schedules.

These have intensified competition with Alaska Airlines to the benefit of the airport and travellers, with the latter itself adding 20 previously unserved markets over the same period as it has re-focused its activities in Seattle.  Brand new destinations from Sea-Tac have included: Cancun, Charleston, Colorado Springs, Helena, New Orleans, Oklahoma City, Omaha, Raleigh/Durham, San Antonio, Steamboat Springs and Tampa.

Alongside Delta, Seattle gains from being the hub of non-aligned Alaska Airlines, which has developed highly successful partnerships with a number of foreign flag carriers including Emirates, Hainan, Icelandair, and British Airways. Alaska is continuing to actively seek to expand its partnerships as Sea-Tac works to attract further airlines into the facility.

Alaska Airlines remains the pre-eminent carrier in the Sea-Tac market, a position it has held since the mid-1990s.  For the 12 months ending September 2015 the airline (including Horizon Air) carried 21.1 million passengers, almost three times the traffic of Delta Air Lines, which has grown to a record 7.8 million passengers. 

This growth has helped Sea-Tac present record numbers for the third quarter of 2015 with all three summer months breaking the passenger records set by the previous month.  Year to date growth is more than twice the average for North America, and Sea-Tac is on pace to set an annual record for passengers for the fifth straight year. The strong performance in the first three quarters surpasses the numbers for the entire year of 2007 (32.1 million in Jan-Sep 2015 versus 31.3 million in 2007).

“We continue to see growth above our expectations. That’s how fast this region is growing," said Reis, “but we are at a critical juncture where we have to make sure our airport can continue to serve the needs of this region’s growth that benefits business and leisure travellers as well as our entire economy.”

The capital budget for the airport includes $1.9 billion in projects over the next five years. This includes the renovation and expansion of the North Satellite, a new International Arrivals Facility (expected in 2019) which will include a new passport control and customs facility that will make use of the latest technological advancements in order to provide a streamlined arrival experience, a new high-speed baggage system and the reconstruction of its centre runway.

“We will be building the facilities that meet the region’s needs, providing a higher quality customer service, more contemporary services and an easier and more enjoyable facility to use,” said Reis.

In addition, the Port of Seattle is working on a Sustainable Airport Master Plan to look ahead five, ten and 20 years into the future to manage growth. Projections see passenger traffic reaching 66 million by 2034.

These projects will help sustain future air service growth and Sea-Tac has already secured two new airlines for 2016 in the form of regional carrier SeaPort Airlines, which will provide service to two cities in Washington State, as well as ultra-low-cost domestic operator Spirit Airlines, which will commence twice daily services from Los Angeles from March 24, 2016 followed by twice daily flights from Las Vegas from April 14, 2016 with connections on offer to an additional 15 cities via the US cities.

“It is a testament to the strengths of the Seattle market that a successful airline like Spirit Airlines has made the decision to fly to Sea-Tac and bring an alternative travel proposition for the city supporting different needs for different customers,” said Reis.