Knoxville, Tenn. – Knoxville Mayor Madeline Rogero and Knox County Mayor Tim Burchett held a joint press conference at McGhee Tyson Airport today to announce a regional partnership that will promote competitive airfares. The initiative, called the Competitive Airfare Partnership (CAP), is part of an Innovation Valley strategy to encourage business relocation and industrial development efforts.
• A public/private initiative that currently includes the City of Knoxville, Knox County,
Innovation Valley, Visit Knoxville, and the Knoxville Chamber.
• Target fundraising goal: $3 million with approximately $650,000 in commitments to date.
• First time a regional partnership approach has been taken to recruit low fare carriers to McGhee Tyson Airport (TYS) – public sector, private sector, tourism sector, and airport.
• Lower the fares by enhancing low fare service at TYS. Regional initiatives like this have been successful in other markets in the United States.
• Long-term communication strategy to remind the business community about the
importance of supporting low fare carriers that serve TYS.
Situated For Success
• The Knoxville region has the population and tourism volume to support and sustain increased low fare service at TYS.
• Low fares have proven to stimulate growth in our region and directly impact the bottom line for both business and leisure travelers.
• Knoxville’s peer markets, such as Greenville and Charleston, South Carolina, have recently acquired low fare carriers like JetBlue and Southwest using a regional approach like CAP.
• Recent passenger leakage studies show that approximately 20 percent of Knoxville -area travelers are using other airports for their boarding points.
• Based on 2012 passenger levels for Knoxville, that 20 percent represents 310,000 additional passengers or 425 departing passengers per day.
• Lower fares will stimulate the market by 10-20 percent providing another 200-400 passengers each day
• Economic development as it relates to business recruitment.
• Growing the market of visitors to Knoxville region from other parts of the country.
• Lowering of overall air fares for travel from TYS.
About Innovation Valley:
Innovation Valley is the regional economic development initiative centered on a 25-mile Technology Corridor with world-class resources in science, technology, and business. Experience shows that a regional approach to economic development offers the most advantages to businesses planning a corporate relocation or expansion and the communities involved. Visit www.knoxvilleoakridge.com for more information.