Airport Expansion: A Losing Bet

Often depicted as drivers of local economies, airports have struggled to stay profitable as passenger air travel continues to languish. Steve Malaga presents the case that throwing money at this particular problem can actually make things worse.

2 minute read

November 21, 2012, 7:00 AM PST

By Ryan Lue


The first decade of the 2000s has not been particularly kind to commercial air travel. Following heightened nerves in the wake of 9/11 and the greatest economic slump since the Great Depression, industry growth has practically screeched to a halt. Scrambling to keep their boats high in a sinking tide, many local governments have poured vast fortunes into building or expanding airports – to little avail and much taxpayer dismay, Malaga argues.

From rural Beecher, Illinois to metropolitan Pittsburgh to the Florida Panhandle, government agencies have been pushing a platform of resuscitation through investment and expansion. Often perilously financed and accompanied by devastating claims to eminent domain, these expansions and new airports require exorbitant fees from the airlines that operate there, which are in turn passed on to passengers, who then make their travel arrangements from a more affordable nexus.

Such is the case in Cincinnati, where some three-quarters of businesses fly employees out through the airport in Dayton, Ohio, over an hour away by car, to avoid higher fares at Cincinnati/Northern Kentucky International. "Unless you’re suffering from delusion," says aviation expert Darryl Jenkins, "you realize that the Cincinnati airport is now really in Dayton."

"Expanding airports isn’t always a bad idea, of course," concedes Malaga. "In a growing, thriving region, it may make sense: Atlanta’s Hartsfield-Jackson, for example, has spent $6 billion over the last decade to add needed terminal space and parking. Dallas/Fort Worth International Airport is investing $2 billion in new space to meet rising demand."

But when expansions and new construction require long-term commitments from airlines already on rocky footing, a bad gamble can turn into an onerous burden on taxpayers. MidAmerica St. Louis Airport, built in the nineties and based on optimistic projections for future demand, was one such gamble: "It took MidAmerica two and a half years to land its first scheduled passenger service, by Pan American Airways... That service started in August 2000 and ended in December 2001, a casualty of lackluster sales. Three other airlines—Great Plains, TransMeridian, and Allegiant—tried to make a go of MidAmerica, only to pull out quickly, even though they had received financial assistance to operate there."

Malaga closes with a dose of scrutiny for airport subsidies slated to generate economic growth: "Last spring, investigative reporters for Scripps Howard News Service boarded 11 flights at subsidized airports and found just two of them carrying more than two passengers. Together, the 11 flights had 130 empty seats, for which taxpayers nevertheless paid a total of $155,000."

Sunday, November 18, 2012 in City Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of park ranger in green jacket and khaki hat looking out at Bryce Canyon National Park red rock formations.

National Parks Layoffs Will Cause Communities to Lose Billions

Thousands of essential park workers were laid off this week, just before the busy spring break season.

February 18, 2025 - National Parks Traveler

Paved walking path next to canal in The Woodlands, Texas with office buildings in background.

Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50

A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.

February 19, 2025 - Greg Flisram

Small rural USPS post office in manufactured one-story grey building with American flag in front.

Delivering for America Plan Will Downgrade Mail Service in at Least 49.5 Percent of Zip Codes

Republican and Democrat lawmakers criticize the plan for its disproportionate negative impact on rural communities.

February 12, 2025 - Cowboy State Daily

Chicago

Test News Post 1

This is a summary

April 8 - 2TheAdvocate.com

test alt text

Test News Headline 46

Test for the image on the front page.

March 5 - Cleantech blog

Military humvee driving through gate at Fort Indiantown Gap Natl Guard training center in Pennsylvania surrounded by winter trees and dead leaves.

Balancing Bombs and Butterflies: How the National Guard Protects a Rare Species

The National Guard at Fort Indiantown Gap uses GIS technology and land management strategies to balance military training with conservation efforts, ensuring the survival of the rare eastern regal fritillary butterfly.

February 24 - Esri Blog