Lakeland invests in Avelo

Lakeland is ready to take flight with Avelo. The city approved just under $2 million in investments for its airport facilities as part of a contract to secure commercial service from the airline.

The number one goal was to find the right partner, and we have done that. – Kris Hallstrand Director of Lakeland Linder International Airport

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Under the deal, Avelo gains preferential access to three aircraft parking positions at the terminal, four ticket counters, and the gate area. The carrier can also request that the city build a second gate area, allowing for sufficient advance notice. The deal is a non-exclusive arrangement, meaning other commercial airlines could also use the facility, though Avelo will leave only one parking position and one ticket counter available for others.

For its part, the city will spend $1.58 million on physical improvements to the terminal building, including construction of a TSA security checkpoint and renovations to the rental car facilities to support the new passenger service. The city will also invest in marketing, though the county tourism group will bear the brunt of that cost. Additional marketing support is on offer, but no revenue guarantees to the airline.

Avelo has not yet announced any flights to the terminal. Based on the construction contracts that service is not likely to commence until May 2024 at the earliest.

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City authorities note that approximately 2,200 passengers per day travel via either Orlando (MCO) or Tampa (TPA). Moreover, 1.4 million residents in the Lakeland catchment area are closer to Linder International than either of the neighboring major airports. Avelo plans to operate 11 routes from MCO and three from TPA in April 2024, with an average of seven daily departures, per Cirium schedule data.

The goal is to see many of those people shift their travel habits to the local terminal. Rent for the space will be based on passenger enplanements rather than a fixed fee. Those costs are set in five year increments over the 15-year agreement, with a potential adjustment every five years, not to exceed inflation.

Airport Director Kris Hallstrand suggests a breakeven point for municipal costs of around 22,000 passengers per month, or 5-8 daily departures from Avelo. No one expects the airline to start with that level of service. They do, however, hope that it can be realized within a year or two of service launch. That is a major stretch given the airline’s current operations size in the region. But not impossible.

The city must also contend with the challenges of growing its airport while mitigating the noise impact on residents. Amazon operates cargo flights on 767s and 737s today. Hallstrand pointed out that the Avelo 737s would be comparable in noise to the smaller Amazon fligths.

A commissioner in the hearing questioned whether homeowners were aware they would be purchasing a property so close to the airport. The city attorney confirmed that new developments have a note in the Title history of the property regarding that fact. 

One interesting quirk in the deal is that commercial operations are not the top priority for the airport. The annual SUN ‘n FUN aerospace expo still is the most important operation at Lakeland Linder International Airport. That means the event director gets to dictate operational schedules during the annual event, including suspension of commercial flights at certain times.