Kevin Dillon, the new president of the Rhode Island Airport Corporation, says during his keynote address yesterday that he sees “a very, very bright future” for T.F. Green Airport with the help of business leaders and the City of Warwick.

The Providence Journal / Mary Murphy

PROVIDENCE — In his first public address to the Rhode Island business community, the president of the Rhode Island Airport Corporation yesterday stressed the need for a longer runway at T.F. Green Airport and for cooperation between the state’s airport and its businesses.

“I’m thrilled to be here today and have an opportunity to talk to such a prestigious group and a group that’s going to be so important to us going forward,” airport chief Kevin A. Dillon said yesterday during the keynote address at Business Expo 2008 in the Rhode Island Convention Center. “I see a very, very bright future for this airport.”

When Green’s new terminal opened in the 1990s, the airport was a national model. “It was really the darling of the aviation industry,” Dillon said. From 2.4 million passengers in 1996, traffic at the airport climbed to 5.7 million in 2005, he said. But, since then, it has declined 13 percent, to almost 5 million. “I do believe that we are not competitive right now when it comes to cost structure.”

“We need to take a step back in this lull in the economy,” Dillon said, and use that time to look at infrastructure improvements at the airport.

“We don’t have gate concerns,” he said. “The terminal is not our problem. The thing we have to focus on is the runway. This runway has to be extended. The airport cannot be competitive with a 7,200-foot runway.”

Dillon acknowledged that expansion of Green’s runway has been a contentious issue for the last decade, but added that the tone of the debate needs to change. While he conceded that a longer runway would have a substantial negative impact on at least some residents of Warwick, Dillon said the airport adds $2 billion to the state’s economy, including $167 million to Warwick’s, and provides jobs to more than 1,000 Warwick residents. “I need the city to acknowledge that the airport is good.”

He said that is necessary because airlines across the country have noticed the acrimony in Warwick, and that can hurt the airport’s business and the state’s economy. “They have the ability to pick and choose. They’re going to go where they’re wanted,” he said.

Dillon also said he regretted that the environmental impact-statement process for an extended runway has taken eight or nine years. “That’s far too long.” He said it has left Warwick residents in limbo, not knowing whether their houses will be affected or whether they can invest in home improvements. “For their sake, this process needs to be brought to a conclusion.”

Dillon said that between runway improvements and controlling the cost to airlines for doing business at Green, he is hopeful of a resurgent state airport. “I’m very confident that the challenges that we have can be solved.”

Green has several assets that give it a competitive advantage, Dillon said. The airport is in an “extremely affluent market,” has 5.5 million people living within 90 minutes and is convenient.

But some dark clouds remain on the horizon, including how the airline industry solves the problem of soaring jet fuel prices, he said. “A big piece of that puzzle is air fares are going to continue to rise.”

Dillon announced that the airport will unveil an incentive package for attracting airlines sometime in the next 30 to 60 days.

He also asked the business leaders for their help.

“What I need is every business in this room, every business in the community, as your employees travel on business, I need you to consider Green Airport first.”

He said that even if fares out of Boston’s Logan Airport are lower, he figures using Green will still be a better bargain when businesses figure in the cost of parking and lost productivity while traveling to and from Logan.

“I need the business community to reaffirm their commitment to the airport.”

Dillon also asked business owners to tell airport officials about travel needs and business destinations. That type of local information will be invaluable when trying to attract airlines and to design profitable routes for them, he said.

pparker@projo.com