The Flying Conspiracy

Connecticut Corporate Magazine
First Quarter 2006

Since its inaugural flight on a balmy summer’s day in 1931, Tweed Airport’s fate has been intertwined with the whims, passions and appetites of politicians and community leaders.

Its long and colorful history has taken on mythic proportions akin to the perennial themes found in classic Greek tragedy: life, death, resurrection (and ultimately redemption). But now thanks to state legislation creating a regional governance system, the appointment of new leaders, the selection of a professional management company and some tenacious business and civic leaders who plunked down millions to help secure its future, Tweed Airport is enjoying another beginning.

Located in once what was a thickly wooded and swampy area, the airport is now surrounded by quiet residential neighborhood in the area known as Morris Cove, less than 5 miles southeast of New Haven’s Green and 1 1/2 miles from the center of East Haven.

First established as New Haven’s Municipal Airport, it is partially in the Town of East Haven, so a special act of Connecticut General Assembly was necessary in the beginning before New Haven could acquire the land. For 66 years until 1997, the Airport was operated as a department of New Haven’s municipal government, but limitations imposed by the proximity of growing residential development and the circumstance and politics of straddling the border of New Haven and the Town of East Haven limited the airport’s growth.

In 1996 with much foresight, Mayor John DeStefano declared that the Tweed Airport (named for John Tweed who managed the airport for the city for the first 30 years) has a vital regional economic impact and that the taxpayers of the city could no longer support the airport on its own. His leadership along with business leaders organized as the Regional Leadership Council (RLC) led to recommendations for a new system of governance for Tweed Airport adopted by the 1997 session of the General Assembly.  Effective on January 1, 1998, the new legislation unleashed a whirlwind chain of events by creating the Tweed New Haven Airport Authority Board to manage, maintain, supervise, and operate the airport as a regional asset for south central Connecticut comprising fourteen cities and towns (Bethany, Branford, East Haven, Guilford, Hamden, Madison, Milford, New Haven, North Branford, North Haven, Orange, Wallingford, West Haven and Woodbridge).  The regime change ushered in a new era as the authority composed of community leaders from throughout the region hired AvPorts, a highly regarded firm with international experience in airport management, to handle operations and to develop a new master plan to replace the existing one adopted in 1983 that had outlived its usefulness and relevance.

The new authority, first led by Roger Joyce, vice president  of the Bilco Company and succeeded in 2000 by Dr. Lawrence J. DeNardis, then president of the University of New Haven (now president emeritus), began a new round of extensive meetings with federal and state authorities, the region’s mayors and first selectmen, business and neighborhood leaders to reach consensus for the new plan which was adopted in 2003.

Air Portal to a Region of Business, Education

After several years of decline and headline grabbing political warfare, Tweed Airport began to shake off its past, striving to fulfill its promise as the missing ingredient to the region’s renewed prosperity as a center for higher education, the arts, major research hospitals and bioscience companies.

Act II begins in the great Aristotelian tradition as a group of New Haven area CEOs and community leaders, including the RLC, sit around a boardroom high above the New Haven Green to seriously discuss how they can contribute to the advancement of Tweed. It was 2003 and the airport had been a clearly articulated high priority for some time recalls Will Ginsburg, president and CEO of the Community Foundation for Greater New Haven, the largest philanthropic institution in the region. Initially, he says, the idea was to energize Tweed by attracting a new carrier to the airport (at the time US Airways was only carrier flying out of Tweed).  The authority and staff, led by Airport Manager Rick Lamport, had already been in discussion with prospective airlines. Then came the seduction. The resourceful group quickly realized a monetary incentive would sweeten the pot. Fundraising commenced amongst New Haven’s powerbrokers led by the skilled and clever tactician, Bruce D. Alexander (Yale ‘65), Yale University’s vice president and director of state and local affairs. He assumed leadership of the group at the request of New Haven Mayor John DeStefano Jr.  Alexander was no stranger to urban development tales of woe. His previous career included revitalizing dilapidated downtowns, a talent he perfected in his lengthy career in real estate at the Rouse Company in Baltimore. As Yale’s ambassador to the city in pursuit of realpolitik, Alexander understands better than anyone else the importance of a viable Tweed-New Haven.

"This is very important to the fundamental growth of the region," Alexander says. "Without a functioning airport economic prospects are not very bright."

Ultimately the business community knew that stabilizing Tweed would significantly add to the growth of the region, attraction and retaining businesses and eventually, create jobs.

"In order to keep the momentum going behind New Haven’s growth," says former economic development administrator for New Haven, Henry Fernandez, "we need to invest in first-rate infrastructure to support New Haven.

Fernandez serves as the chair of Tweed’s air service committee and will continue as a board member on the Tweed Airport Authority.

In the space of several months, Alexander successfully persuaded 20 influential opinion leaders from national banks like Wachovia, Bank of America and NewAlliance to communications and healthcare giants SBC Communications (now ATT) and Anthem Blue Cross Blue Shield to commit nearly $2 million to guarantee the Delta Comair service (into Cincinnati) for  period of one year. The money raised by the guarantors would effectively cover any losses incurred from May 2004 to May 2005.

(Editor's note: Comair ceased Delta Connection service at Tweed on January 2, 2006.)

However, US Airways and America West airlines joined forces to create the world's largest low-fare airline, and US Airways offers passengers six daily flights from Tweed to their main hub in Philadelphia (PHL). From PHL passengers can connect to all of the same cities that Delta flew. The only difference is they now connect in Philadelphia as opposed to Cincinnati. In addition, the partnership with America West now offers passengers even more options.

Economic Impact

Some community leaders felt that without business support the airport would not reach its potential, ever. Kenneth Regan, supreme treasurer of the New Haven-based Knights of Columbus, convinced the members they had to do something. That was the general feeling.

It was in everyone’s interest, adds Jeff Klaus, market president for Bank of America. There is a direct correlation between a viable airport and economic activity in a region. We believe that local wealth creation helps businesses and economic development in the markets we serve which is very important to the bank.

Steve Hudd, Wachovia’s New York and Connecticut government banking believes the expansion of Tweed will help retain and attract major employers to the region. The bank, he says is highly committed to fostering economic and community development activities. Additional financial contributors like the president of the Greater New Haven chamber of commerce, Anthony P. Rescigno, credit Alexander with his measured determination and firm commitment to the project saying Bruce played a major role uniting businesses around the idea. It was no small feat.

The new Delta service took off  in 2004 and has performed well say officials. Now, airport representatives are diligently working on expanding air service further by increasing existing service.

"The upside of the Delta success" says DeNardis, chairman of the authority, "is the unlimited potential for expanded service among major airlines and also possibly for start-up aviation companies interested in under-served markets like Tweed."

“The Airport Authority is grateful to NewAlliance Bank for their multiple roles in the Delta transaction,” notes DeNardis. “The bank made one of the lead contributions, at $250,000, and also prepared numerous agreements and security instruments among the 14 parties and issued the letter of credit to Delta.”

Here is a role that is less well known:  At the time, Diane Wishnafski (now an authority member) was immediate past chair of the Foundation of the Greater New Haven of Commerce, which is the fiduciary for the business community contributions. Wishnafski joined forces with the chair of the chamber foundation, SBC Vice President Ann Rotatori, to lead the crucial discussions within the Board of the Chamber Foundation.  Due in large part to this combined leadership, the Chamber Foundation agreed to enter into a revenue guaranty agreement with Delta with a potential exposure of $1.6 million.

Who said that people can’t make the difference?

To Market, To Market

In support of new carriers, the airport launched a major marketing thrust aggressively pursuing a behavior modification approach within the New Haven market. Meanwhile, its ambitious expansion plans painstakingly advance. Arguments against adding 1,000 feet of runway (which would permit jet service to destinations like Atlanta, Chicago or Miami) remain unchanged. East Haven has resisted a lengthened runway, but DeNardis says that the current mayor, Mayor Joseph Maturo, Jr., has been open to making infrastructure improvements, particularly those that will improve safety. “He is the type of person who will listen to reason.” At the same time, overcoming resident’s fears of lowered property values will take heroic skill. That’s part of the reason why the affable and accomplished Larry DeNardis was brought in: to soothe wounds and mollify estrangements.

Buffering the storm and pressure of the moment with relative dexterity, DeNardis is very conscious politically of Tweed’s precarious nature that it assumes in the Connecticut transportation landscape. A former state senator and U. S. Congressman and currently president emeritus of University of New Haven, he has a real feel for the project and the mammoth challenges that lie in wait. He plays a pivotal role in maintaining the peace. But at the end of the day, he knows a higher authority (the governor, state legislature or the courts) could step in if they want the Airport to become a bigger player in New England aviation.

DeNardis says plainly that he and the authority have made a conscious effort to be open and transparent in the expansion planning process. We’ve agreed to minimize impacts and have been very sympathetic to the community’s concerns, he explains. We’ve also been very aggressive in pursuing state and federal grants. We would even go so far as to offer to buy homes immediately affected by the expansion plans, on a voluntary basis if we had the resources. He also proposed tax help to residents immediately impacted which he plans to introduce to the General Assembly in 2006. Though points out that studies show property values have remained stable in light of the proximity to the airport. But that doesn’t deter residents (or the East Haven mayor) from opposing the extension even though all parties (national, state, city and local officials as well as community representatives) signed off on the airport’s Master Plan in January 2003. To date, no opposition group has organized itself against the plan or the environment impacts, though a handful of locals voiced concerns at community meetings.

"We’ve scrutinized, argued, debated, going very carefully, tempering the public’s concerns, trying to reassure them that we’re not trying to create a mega-airport," explains Rick Lamport, airport manager of Tweed who handles day-to-day management and operations. "This facility has a lot of money in it. Given the transportation issues in the state, it makes sense to make Tweed economically efficient."

Efficient Air Service

Airport Manager Rick Lamport

Since the launch of the new Delta service, there have been no complaints from residents regarding increased noise says Mayor Maturo. He is supportive of the increased air service but not supportive of lengthening the runway by 1,000 feet. Over the years, he’s argued vehemently about quality of life issues as well as troublesome environmental issues, something that really bothers him today.

"Where the heck are all the environmentalists?" he asks quizzically. "Where’s the outrage? They’re opposed to a cross-sound cable and its effect on shellfish but not the salt water marshes in East Haven? If this was in another community they would be crying not in our backyard. The wetlands Maturo mentions are what airport officials deem low quality co-called fresh water wetlands not the saltwater variety that nurtures cattails who suck up contamination."

It is true that parts of the airport are located in a sensitive environmental area. Phase one of the three phase of the Master Plan project would add runway safety areas to the north and south of the major landing strip which would basically require the relocation of Dodge Avenue, Morris Creek/Tuttle Brook as well as wetlands mitigation. The DEP application for this phase is already under review and in late March airport officials received a preliminary stamp of approval by the Federal Aviation Authority (FAA) and the DEP issuing a joint AROD (a record of decision) regarding the environmental impacts thus paving the road to imminent approval.

Since Delta arrived, emplanements at Tweed are up all around; Delta is operating at near 70 percent seat capacity. Last year, some 41,000 passengers flew from Tweed compared with a meager 16,000 in 2003. DeNardis expects the numbers to more than quadruple this year to 180,000. Moreover, the fixed base operator (FBO) Robinson Aviation, has seen an increase in its corporate jet service. Executive Jet Management, a NetJet company, which provides business aviation services including on-demand charter and aircraft management, added a new Challenger 601 base at Tweed for fractional and retail charter in November 2004 to meet increase demand.

Forward, Ho!

Despite all the recent success, there continue to be speed bumps. In 2004, Northwest Airlines announced it was putting on hold any consideration of potential service between Detroit and New Haven due to internal company issues. Again, a package of about $1 million containing $500,000 from the state was offered as an incentive. That money remains up for grabs as talks with other airlines continue. Nevertheless, DeNardis remains hopeful. On the agenda in 2005, was getting the governor and ConnDOT to endorse a dual airport strategy.

"There have been arguments against investing in this airport but the numbers show there is a real market here, says DeNardis. The success has surprised everyone," adds Bob Santy, director of the Regional Growth Partnership (RGP), and Susan Godshall, vice president of the Greater New Haven Chamber of Commerce, who together provide important staff assistance to DeNardis and Lamport. “We believe this is Tweed’s time.”

Another consideration is regional airport planning. According to State Transportation Commissioner Stephen Korta airports across New England including Connecticut’s 24 commercial and commuter hubs, municipally-owned and state-owned, are undergoing a reevaluation by the Massachusetts Port Authority (Massport) funded by the FAA. Korta knows first hand the challenges involved in creating airport strategy: prior to his appointment as commissioner at the DOT, he was administrator of Bradley International Airport and also holds a pilot license. It’s part of a larger interstate effort to aggressively establish a stronger transportation partnership, Korta explains. They plan to map a regional air strategy similar to one completed back in 1998 to determine each airport’s future role and responsibility in the Northeast.

He continued to say that some, smaller airports like Tweed, could assume a larger position in the Northeast’s air transport strategy. "However, the role it is playing today – serving the commuter segment-very well maybe what it will be doing because that’s what it is doing right. Korda admits it’s true that in the past Tweed like Sikorsky in Stratford has been mentioned as perhaps assuming a larger role in Connecticut’s transportation network but there are no plans to do so in the immediate future."

Future Challenge

One of Tweed’s biggest challenges is articulating its economic impact and relative importance in the state without taking the spotlight away from Bradley International Airport, Connecticut’s primary airport. Tweed has no plans to compete with Bradley. They can co-exist peacefully. It has its own market, implores Lamport. “We have ours. But it is in the best interest of the state to support Tweed because of the economic benefits to the region.”

Lamport, airport manager since 1998, is passionate about making the airport thrive and points to the successful privatized economic models of worldwide behemoths like London’s Heathrow or Sydney Airport. He is well-known and well-versed when it comes to firing up people’s imagination surrounding Tweed: Two things make or break air service at an airport: the first is infrastructure and the second is market. “We have the market. But do not have the infrastructure to support the market. This airport has never had a chance to work but studies show it can work.”

Make it Known

In charge of marketing and selling the airport’s identity, is Dave Greco, hired by Delta funders to attract business travelers. He is well aware that many of the 1.4 million people in south central Connecticut still prefer Bradley, T.F. Green or JFK when it comes to flying. With a preliminary federal grant of $250,000, new ads are running on television, radio, billboards and in newspapers with the slogan: Right Choice, Right Time. Greco has been busy presenting to local rotary groups as well as corporate and institutional clients based in the area like Bayer, General Electric and others highlighting Tweed’s convenience and ease.

"Flying out of Tweed might sound like a dubious proposition but not one that should be overlooked," says Greco. "Airfares have become more competitive, as long as you book in advance," he adds. And as Renny Loisel of the Greater New Haven Visitor’s Bureau recently found out, "you can get to Tucson from Tweed with a smile. She flew out there on a business trip last winter and was pleased at how easy the trip was. Everyone was so friendly and helpful, even at 5:30 in the morning, she says. People at the conference were amazed that I could get to Tucson from New Haven."

What Tweed will look like in 20 years is anyone’s guess. A mere additional 600 feet of tarmac and it can reinvent itself (once again), perhaps this time as the regional hub of Southern New England. Late bloomers always amaze.

Tweed Nabs Regional Airport Award

Tweed New Haven Regional Airport for “controlling its own destiny by securing government grants and developing extensive community-based support to boost its air service” and awarded it the 2005 Regional Airport of the Year Award.

The Regional Airport of the Year Award, recognizes a regional airport's “outstanding leadership team for demonstrating innovative thinking, tenacity and marketing prowess in attracting new regional carriers, implementing a successful business model, and demonstrating expertise in providing air service and quality customer service.”

 A key factor according to the agency was Delta Air Lines' decision in 2004 to begin daily service to Cincinnati from New Haven, service provided on a 40-seat regional jet by Comair.

Airport managers, with the help of Yale University, secured $1.6 million in revenue-guarantee money for Delta from the local business community, as well as $250,000 for a marketing campaign. Then, New Haven successfully applied for a $250,000 federal Small Community Air Service Development grant to match the local marketing dollars.

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