SeaPort started up back in 2008 during the middle of the economic recession, and has been able to grow to a reasonable size flying mostly Essential Air Service (EAS) routes. It has reported being profitable, transporting nearly 100,000 passengers in 2011 on its 9-seat Pilatus PC-12 and Cessna Caravans.
To get off the ground SeaPort used the operating certificate of an already existing carrier established in the 1980s named Wings of Alaska, by buying it out for $750,000. This method of entry into the market place is different compared to other startup airlines. By partnering with Wings of Alaska for their operation SeaPort did not have to undergo the daunting task of getting their own FAA operating certificate, but it did not come without its own troubles. Wings of Alaska still owed about $1.6 million on a hangar and had to find a way to pay it back.
SeaPort started out flying between Seattle and Portland (its namesake, and a route it has since dropped) as well as other places in the Pacific Northwest, appealing to business travelers who wanted a convenient schedule, affordable fare, and a no-hassle travel experience. This business model seemed to work at first, but the 2008 recession seemed to hit the startup airline hard, forcing them to go back to the drawing board and readjust their business model.SeaPort then came back with the profitable idea of bidding for EAS routes to rural communities. Because of numerous multi-million dollar EAS contracts SeaPort's route network now has a Mid-South region to it, serving numerous cities including Memphis, Nashville and Kansas City.
Many have criticized SeaPort for being quick to pull out once a subsidy ends, but these subsides have guaranteed SeaPort profitability while developing its brand in the communities it serves.
SeaPort also notes it's advantage with 9-seat aircraft, touting that they are more fuel efficient and meet capacity demands better and do not over-flood the market with unprofitable 50-70 seat jets.
It has been interesting to see SeaPort's development over the past few years, and I will enjoy seeing how this airline grows in the future. They have seemed to revolutionize the comfort of short-distance travel by offering "private-jet-like" service in small communities, but it will be interesting to see if SeaPort can support many non-EAS routes in the future.



0 comments:
Post a Comment