News
Airport is named U.S. Port of Entry
Capital City now able to add customs, international flights.
With domestic passenger numbers down, the Capital Region Airport Authority is looking abroad for a way to boost airport revenue and the local economy.
Authority officials Tuesday announced an agreement with U.S. Customs and Border Protection for a port of entry designation for Capital City Airport.
The “Port Lansing” status will allow the airport to handle international passenger and cargo flights with on-site customs inspectors.
The airport is slated to spend $220,000 for a temporary customs facility, expected to be operational by May. It could cost $4 million to remodel the airport terminal for the permanent facility, expected to open next year
“There’s an opportunity there to open up a door,” said Robert Selig, the airport authority’s executive director. “As air service continues to decline with U.S. major carriers, airports in Michigan, like Lansing, have to start looking at other opportunities.”
Passenger traffic at Capital City fell to a near 20-year low last year, largely because of cuts by major carriers Northwest Airlines Corp., Delta Air Lines Inc. and UAL Corp.’s United Airlines.
Selig hopes customs operations can draw flights to the Caribbean or Mexico, as well as those flown by Canadian carriers. Capital City already is slated to host a charter service to Ireland later this year, although passengers are slated to be screened in Shannon, Ireland, instead of in Lansing.
Airport officials are considering renaming the airport “Capital Region International Airport” to mark the change.
The airport authority board is expected to act on the new name in April.
Airport and economic development officials think the “port” designation also could lead to more jobs and business in the Lansing region.
Capital City is being positioned as a centrally located alternative to Detroit Metropolitan Airport for manufacturers, warehouse operations and logistics companies importing to and exporting from Michigan.
The airport already has a major United Parcel Service Inc. operation. The Atlanta-based package delivery company shipped about 57 million pounds of cargo through the airport last year.
Local officials say there likely are a handful of area companies that could move existing shipping to the Lansing airport. More, it’s hoped, could be drawn to the area.
The airport authority owns about 120 acres of vacant land it could develop into an industrial park. At current rental rates, that could generate $1.5 million a year for the airport.
Area officials praised the effort as one of a number of activities to help area companies do business globally.
“We aren’t just going to be victimized by the changes in the global economy,” Lansing Mayor Virg Bernero said.
The Lansing Regional Chamber of Commerce is working with the airport to get federal Foreign Trade Zone status for the airport. That would allow manufacturers located in the zone to defer or avoid paying duties on the parts they import to their factories
“If you want to grow a local economy, the only way to do that is to get outside of your community,” said Matt Dugener, chief executive officer of the Lansing Economic Area Partnership, or LEAP Inc. “Look at the companies that are growing. They’re the companies selling products and services outside of our community.”