Some may call Mr Cote's letter as being negative or critical. Although I see the potential in ORG, can you blame anyone for asking questions like these when are track history of losses is unquestionable (currently losing $2,000,000 per year), current operating agreement decreases to 68% re-imbursement from MassPort on July 1st and completely ends in 403 days.
Mr James Cote--- great letter.
Tuesday, May 23, 2006
Study Worcester’s future without an airport
The Worcester Regional Airport’s financial impact to the city is no different from that of the former City Hospital off Chandler Street. Once we got over the sentimental feelings, it was easy to see the need to close the financial drain that was once an excellent hospital. The city infrastructure needs work and that work begins with the school system. Increased property values and our quality of life are impacted directly by the effectiveness of our schools. Please, has anyone ever spoken to anyone who told you they moved here because of the airport? There is no doubt that the airport is a valuable piece of property, but that value is not as an airport.
Any and all future studies should be conducted on what to do with the property after the airport closes. Hopefully, now that we are changing the name, the airport will go the way of radio station WAAF. Remember, they were WAAF Worcester, then WAAF Worcester-Boston — and now they are WAAF Boston and out of the city.
James Cote
Westboro, MA
Same Time Next Year
-
It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
22 comments:
My question is-can an airport actually be closed and sold as development real estate?
Is ORH destined to become a subsidized flying club?
just can't figure out why you will not publish the positive Letters to the Editor as well. But... It's your Blog! You make the decisions.
Anonymous:
I have published many positive things about ORH. Including my wife's good account with Allegiant just yesterday as well as various other passengers, who have told me about their positive experiences.
Just out of curiousity, are you the same "anonymous" who chastised me for not knowing there was 17 employees at the airport??? By the way I still do not know where it says 17 ees in the budget report. Anonymous, I am starting to think you have a vested interest at ORH--maybe you work at the airport?
This blog tries to portray as true picture of the airport and deal with facts. For the 100th time, Allegiant has been a great start at ORH but not nearly enough. As a tax-payer I do not feel four flights per week to Sanford costinig $2,000,000 is worth it.
Carl (by the way thank you for using a name), check out the blog on May 8th regarding Tacoma Narrows Airport. You questions should be answered there.
Thanks
Bill Randell
Checked out the May 8th article.
Looks like an airport always will remain an airport.
So what are some alternatives if Massport doesn't takeover and as taxpayers of Worcester we do not want to subsidize the airport?
Carl:
Alternatives:
1) Extend the current agreement with MassPort. I ask why?? We are coming to the end of the 5th year with MassPort, are you happy with the results? I am not and do not blame MassPort, since they have no real equity in ORH.
Not to mention our own consultant, IMG, says this will cost the tax-payers between 1 to 1.3 million per year.
2) Out sale the airport or long-term lease (99 years) to MassPort or anyone else for that matter.
3) Downgrade to a GA (General Aviation Airport). IMG has a good explanation of this in their reports which can be found on the city's website.
Before we are forced to downgrade to a GA airport, we need to pursue the 2nd option as agressively as possible.
James is correct about City Hospital and it took the council a number of years before it was finally taken off the respirator. The more city employees to be put out of work, the harder it is for the council to act rationally. However, please keep in mind that at the time Worcester had at least 6 other hospitals and was clearly "overbedded". We only have ONE airport.
Undoubtedly any older urban area could use some infrastruture work, but how many new schools have we built the in last 10-15 years. Not a perfect analogy but HC, Clark And WPI seem to well with many buildings that are 80 -100+ years old.
Has anyone ever told you they moved to Worcester because of the public school system?
Tried to access to IMG case study.Went directly to IMG website ans checked under aviation and case studies. Did not find Worcester.
Wanted to read up on your third alternative on downgrading to a GA airport and what this would involve.
Would this mean privatization with Worcester not paying the tab?
Dan:
Go to City web site (http://www.ci.worcester.ma.us) then hit the tab on the left that says reports. Scroll down to Airport and you will see three reports. They all say the same thing but in different levels of detail--start with the narrative.
Out right sale or long term lease (privatization) could mean many things to the City of Worcester just like any lease or sale. It all depends on the negotiations..
Bill
Thanks Bill for directing us to the IMG report. I was able to find it.
Looks like outright sale for non aviation uses is 99.9% unlikely.
Also privatization is also out of the question.
Looks like the only viable option is :
Massport
or
Reduction from Part 139 to GA status.
Dan:
I would not rule out privatization. There is an inherent conflict when you hire a consultant.
Let me ask you a question. Assume you are the mgmt of a mfg and you hire a consultant. How many times does the consultant say to the owner sell the company when he or she is hired by mgmt.
IMG said there were no potentialbuyers, but why don't we test the waters and find out.. Bet you when Mayor Murray said someone out there would be the Worcester Center from CIGNA, there was alot of skepticism.
I went on the Massport website and saw the current business up at the airport.
How about Swissport, Radio Shop, Jp Aviation Enterprises, Amity Flight School,and Euro American Air Freight working together to takeover the airport.
seems to me you have a wealth of experience already at the airport.
Rick, I have spoken to Euro American personally. They have NO INTEREST in the future of ORH. It would seem that an AIR FREIGHT company would. Isn't that odd to anyone else here? It's really a shame. One would think that the tenants of a commercial property would do everything they could to promote and preserve what could be a valuable resource to them. If a longer runway is needed, advocate for it. If environmental studies are needed, work for them to be done. If an air freight company has no use for the airport b/c of current airport inadequacies, and they are located on airport property, we're losing alot of business to other airports.
Wow. Ok the air freight company is out! How about the other business'.
Rick:
We need someone with very deep pockets to pull this off like a MassPort... The businesses up there would have a very tough time putting together the financing, etc.
We have monies left from the Small Community Air Service Grant that we could use to market the airport. Below is an idea from Harry from an earlier comment:
Create a little buzz, or at least some interested parties in the bidding process. You know the Chamber of Commerce business expo that occurs in the fall every year at the DCU Center?
Invite any of the following CEO's to come give a keynote address on the airline business and how to improve ORH: Herb Kelleher/Southwest Airlines CEO, Don Carty/Virgin America CEO , Stelios/EasyJet CEO (European discount airline looking to make US inroads); here is his contact info: To apply for Stelios to speak at your event, please email:
engagements@easyGroup.co.uk.
This way if you have some major players who are not under the thumb of Massport you a) make them aware of ORH b) possibly get them interested in ORH c) drive up the price so Massport doesn't buy ORH for a song.
Rick:
We need someone with very deep pockets to pull this off like a MassPort... The businesses up there would have a very tough time putting together the financing, etc.
We have monies left from the Small Community Air Service Grant that we could use to market the airport. Below is an idea from Harry from an earlier comment:
Create a little buzz, or at least some interested parties in the bidding process. You know the Chamber of Commerce business expo that occurs in the fall every year at the DCU Center?
Invite any of the following CEO's to come give a keynote address on the airline business and how to improve ORH: Herb Kelleher/Southwest Airlines CEO, Don Carty/Virgin America CEO , Stelios/EasyJet CEO (European discount airline looking to make US inroads); here is his contact info: To apply for Stelios to speak at your event, please email:
engagements@easyGroup.co.uk.
This way if you have some major players who are not under the thumb of Massport you a) make them aware of ORH b) possibly get them interested in ORH c) drive up the price so Massport doesn't buy ORH for a song.
Good idea Bill. Seems like we should add Swissport to the mix. Went on their website. They're global. That's deep pockets. Throw them in the mix with the other suggestions you mentioned and we might just have something.
Rick:
That is a good-point about SwissPoint... Imagine a full page story in the Wall Street Journal "Airport For Sale"...
Bill
Rick and Bill, I've also spoken at length with Doug Robinson of Swissport. He's a great guy, was completely candid with me. Why would he suggest to his employer that they buy ORH? What is their motivation? They know the shortcomings of the place as well as we do. As for the other businesses, collectively they might have bargaining power, but the obstacle is leading all of them in a constructive direction, against an administration that is financially strapped, in a tough economy, when all they really want to do is go home at the end of the day. You're fighting deep-seated apathy with those folks.
Today's T&G leads me to believe that Mr Cote's concern has more to do with money for schools than with the airport. My opinion only.
IF WHAT TOM WRITES IS TRUE, AND APATHY IS THE SHARED SENTIMENT OF THE AIRPORT, THEN ITS TIME TO GET NEW PLAYERS IN THE MIX, WITH FRESH IDEAS, ESTABLISHED CONTACTS.
Steve, I think that was Bills' intention when he started this dialogue: get new people with fresh ideas involved and interested in the current situation and try and flesh out a better direction for ORH. With qualified success, his group has done so, but as I said above, apathy runs deep. The political machine is in overdrive, and some, not I, claim Worcester missed her opportunity when they defeated the access road. As for established contacts, we have spoken with Congressman McGovern's office, City Hall, the Chamber of Commerce, higher education reps, and local business leaders to urge their support of our regional airport. Your thoughts have merit, but have also been approached before.
Tom,
THANKS FOR YOUR INSIGHT.
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