September 30, 2006

Hanscom Adds Flights To Baltimore

Lets see the other airport owned by Massport has now added service to Baltimore along with the current flights to Elmira. We need to sell ORH to MassPort!


September 28, 2006
Boston-Maine Airways' introduction of service between Hanscom Field in Bedford and Baltimore-Washington International Airport will begin Tuesday, two weeks later than expected.


It took longer than anticipated to make arrangements for space ``at the very busy" Baltimore-Washington airport, said David Fink, chief executive of the Portsmouth, N.H.-based regional carrier, which this month began offering service from Hanscom Field to Elmira-Corning Regional Airport in upstate New York. Boston-Maine, which does business as Pan Am Clipper Connection, will have two flights a day, five days a week, between Bedford and Baltimore-Washington via Trenton, N.J.

The airline has been serving Trenton from Bedford since March 2004. Flights will depart Bedford at 8:45 a.m. Monday through Friday, Boston-Maine spokeswoman Stacy Beck said. They will arrive in Trenton at 10:15 a.m. and then take off for Baltimore-Washington at 11:10 a.m., arriving an hour later. A return flight will leave Baltimore-Washington at 1:30 p.m. each weekday, getting back to Bedford at 3 p.m.

An introductory fare is as low as $99 each way, Beck said. Separately, demand for the airline's Bedford-to-Elmira service ``has been good," Beck said, without elaborating.

Allegiant Adds Roanoke to St Pete's

Allegiant Air announces Roanoke flights to Tampa area

Non-stop service starts Dec. 12
By Christina Rogers
Allegiant Air officially announced new, non-stop service from Roanoke to the Tampa Bay area this morning in a press conference attended by both airport officials and airline’s spokesperson, Tyri Squyres.

Twice a week flights from Roanoke Regional Airport to the St. Petersburg-Clearwater International Airport, a regional airport across the bay from Tampa, will begin Dec. 12 with evening departures on Tuesday and Saturday.

An introductory one-way fare of $49 is available for passengers who purchase tickets before Oct. 28 for travel through Jan. 31, 2007. Regular one-way fares on the route start at $79 one-way.

September 29, 2006

WoMag Article

http://www.worcestermag.com/archives/2006/09-28-06/city_desk.html

9% tax, correction .09 cents, per gallon levied by they City of Worcester.. Do other airports charge a tax on fuel purchased a their airport?

IMG

I know that this is getting repetitive, but what can I tell you. The City of Worcester spends $100,000 on a study by IMG last year. Was it bad? No, it was actually a pretty good summary of where we stand, but I still do not see it being worth $100,000.

Since that time, we have used an additional $100,000 from the DOT Small Community Air Service Grant to retain IMG to help us recruit a commercial airline. How are they doing?? No idea.. Nothing!!! Evidently nobody on the airport commission even asks how IMG is doing either since there is never any mention in any of the Airport Board minutes???

IMG tell us that nobody wants to come to ORH and why. Fine by me, but nothing?? Exactly what have we gotten for $100,000??? Sorry for the frustration but watching Allegiant leaving no other city, except ORH, adding new destinations, like St Pete's, while we hear nothing from IMG as we lose $200,000 per month with 9 months left in our current operating agreement with MassPort makes it hard to keep the faith, like the Telegram editorial board urges us to do.

September 28, 2006

275 Days Left--To Do List

  1. Leigh Fisher--Master Plan
  2. Louis Berger--New England Regional Air Study Plan
  3. IMG-Results of their recruitment efforts
  4. RFP's--two pieces of land and restaurant
  5. Major announcements
  6. Negotiations with MassPort

September 27, 2006

Boyd on Skybus

THIS GUY IS GOOD!!!

Michael Boyd, president of The Boyd Group, an aviation consulting firm in Evergreen, Colo., questioned whether the Columbus market needs another low-cost carrier, since Southwest and JetBlue airlines already fly there and the region "has outstanding service for crying out loud." He predicted the airline will struggle to fill seats.

"I don't buy it," he said. "I'd like to see it. I'd like to buy it. The more competition the better. But I don't know where this huge underserved market is out of Columbus."
The low-cost airline industry is a difficult one to enter. Boyd cited as examples the bankruptcies of Washington, D.C.-based Independence Air last year and Columbia-S.C.-based Air South in 1997. Air South had received $12 million from the state of South Carolina to begin flying to 10 cities, mostly in the Southeast in 1994.

Boyd said he hopes Ohio isn't making a similar mistake with its money

September 26, 2006

Tacoma Narrows

Lets hope we read stories about our City Manager talking to MassPort about a price for ORH over the next 277 days. Note also how Tacoma Narrows received two bids from private parties that were unsolicited.



County Executive John Ladenburg is set to meet this week with Tacoma City Manager Eric Anderson to begin the process of negotiating a purchase price for the Tacoma Narrows Airport, which is on the Gig Harbor Peninsula on the west side of Puget Sound. A feasibility study shows the county could break even on the deal because of the economies of scale that could be achieved by running two airports. The County already operates the Pierce County Airport.

Ladenburg says he would consider the purchase price, the cost of capital improvements and the amount of help the county could get from state or federal grants before deciding whether to recommend the purchase. The city announced earlier this year it would sell or close the airport. The city has received at least two unsolicited offers from private parties.

September 25, 2006

September 24, 2006

279 Days

Items that we all await:

  1. Leigh Fisher (consultant) Master Plan
  2. Louis Berger (consultant) New England Regional Air Study Plan
  3. IMG (consultant) recruiting efforts
  4. RFP's of two parcels of land
  5. RFP of the restaurant
  6. MassPort negotiations

I have been following the airport now for two years and this is officially the lowest point. Right now I can say, without a doubt, that there is no way we will get another airline at ORH for this winter (peak season). Meanwhile Allegiant can not expand fast enough and will be rolling out their IPO. We missed a huge opportunity!!

Time to sell or close ORH. Asking MassPort to extend the current operating agreement is a complete waste of time, we need to convince MassPort to outright buy ORH or take out a 99 year lease. Extending the agreement will only cost the tax-payers millions more and the current airport management will merely hire more consultants.

September 23, 2006

Importance of the Airport Website

Recently I commented on how Allegiant added cities 5 thru 8 to fly to St Pete's. Based on the fact Allegiant sells 80% of their tickets on their website, I commented on how good the web sites were for these four cities, note their names and links below

Newburgh, NY
South Bend, In
Springfield, M0 Branson
Toledo, Oh

I then commented how ours still looks 3rd rate:

Worcester, MA

Although I think the difference is quite obvious between the first set of four and that of Worcester's, I would appreciate it if bloggers would take a moment to compare and make a comment.

September 22, 2006

Records Request

Letter that I have mailed to our Airport Liaison today:

September 22, 2006



To: Phil Niddrie
Re: Records request


1) The August Airport Commission meeting mentioned a July “yields” report under the airport director’s report concerning Allegiant operations. Can I have a copy of this report as well as the previous “yield” reports from December thru January.

2) Can I have a copy of the deal signed between the City of Worcester and Allegiant that resulted in Allegiant starting service this past December.


Sincerely,



Bill Randell

Skybus

As it prepares to begin flying next spring, fledgling low-cost airline Skybus Airlines will expand its Columbus operations with the help of incentives local and state officials are set to announce Friday. The Columbus-based company plans to add a corporate headquarters, aircraft hangar and flight operations facility at Port Columbus International Airport, creating nearly 900 jobs, according to the state.

The state plans to provide a $16 million package of incentives to help the airline get started. The economic impact of the airline's expansion in the region could be $1 billion a year, according to early state estimates. "This is the best economic development project in central Ohio in probably a decade," said Lt. Gov. Bruce Johnson, who also is the state development director.

The airline has said it plans to fly to 25 cities from its Columbus hub, using a low-cost, low-fare model aimed at competing with Southwest Airlines and other no-frills carriers. But spokesman Bob Tenenbaum said Skybus has a business plan that's all its own. "This is not Southwest," he said. "They have their own business plan designed to work in Columbus and the other markets they're going to serve."

Tenenbaum declined to comment on the details to be announced Friday. He said the airline has spent two years raising money. He said the cities to which Skybus will fly won't be announced until at least January.

September 21, 2006

Questions Outstanding

  1. 282 days left in current agreement with MassPort, which is currently paying 68% of operating deficit.
  2. New Regional Air Study Plan--awaiting final results.
  3. Leigh Fisher Master Plan--awaiting final report.
  4. IMG Recruiting Efforts---awaiting any word on current status.
  5. RFP's of two parcels of land--released shortly.
  6. Major announcements--- thought there were some being announced shortly when Allegiant stopped service?
  7. Part 139--how much would the airport save if they were no longer Part 139 certified?

September 20, 2006

Allegiant Adds 9th St Pete's City

10 News has confirmed that Allegiant Air will announce Wednesday that the airline is adding service from Knoxville to Saint Petersburg, Florida.Allegiant currently offers service through Las Vegas and Orlando.Last week, Allegiant announced that it would begin offering service from Saint Petersburg Airport to 12 cities on November 16th. Officials have not released when the Knoxville flights will begin. 10 News will have more on this story as the information becomes available.

September 18, 2006

Part 139 Designation

I know there was some talk earlier in the week about when you need to be Part 139 Certified--note below. I do not see us getting any scheduled service over the next year. If most of our GA activity is for planes with less then 30 passengers, why do we have to be Part 139 Certified? If we were not Pary 139 certified, how much would we save?? Lets hope the Master Plan by Leigh Fisher will lay this out for us...



http://www.faa.gov/airports_airtraffic/airports/airport_safety/part139_cert/?p1=what



Part 139 Certification
What is Part 139?

14 CFR Part 139 requires the FAA to issue airport operating certificates to airports that---

  • Serve scheduled and unscheduled air carrier aircraft with more than 30 seats;
  • Server scheduled air carrier operations in aircraft with more than 9 seats but less than 31 seats; and

The FAA Administrator requires to have a certificate. This Part does not apply to airports at which air carrier passenger operations are conducted only because the airport has been designated as an alternate airport.


Airport Operating Certificates serve to ensure safety in air transportation. To obtain a certificate, an airport must agree to certain operational and safety standards and provide for such things as firefighting and rescue equipment. These requirements vary depending on the size of the airport and the type of flights available. The regulation, however, does allow the FAA to issue certain exemptions to airports that serve few passengers yearly and for which some requirements might create a financial hardship

September 17, 2006

City Revenues

In the past month:

1) Shaws on Grafton Street was paying $215,000 per year in annual taxes. Once they are closed, I would imagine they would get an different assessed value and a much lower tax bill.

2) City wants to waive $200,000 in fees for a Performing Arts Center that will pay nothing in taxes.

3) Allegiant terminates service at ORH hurting our chances tremendously to turn around the airport and a $200,000 per month loss.

Not a good month for the city's bottom line.

Allegiant Financials

Found this story in a Lehigh Valley local paper. Interesting points:
  • 7.3 million profit in 2005 for Allegiant
  • 11.5 million profit first half of 2006 for Allegiant!!!
  • Allegiant will serve 50 cities by the end of the month
  • Allegiant pays close attention to expenses
  • 80% of Allegiant tickets are sold on their website. The importance of a well run website is huge. Take a look at yesterday's blog and the links to the 4 airports listed then look at http://www.flyworcester.com. There is no comparison.

Allegiant must have been losing lots money at ORH, maybe the best thing to do right now is to take a look at the "yield" reports Airport Director Waldron mentioned in the August minutes. Unlike some other second-tier carriers that were not as well run or financially strong (SouthEast, TransMeridian or Hooters), I fear we are going to read alot about Allegiant's IPO and expansion over the next couple of years.


Allegiant goes public
The airline, which is adding a route to St. Petersburg, Fla., from LVIA, also plans to sell its stock.

By Jeanne Bonner Of The Morning Call
Allegiant Air, which confirmed Wednesday it will begin flying to St. Petersburg, Fla., from the Lehigh Valley, is unlike other small, low-cost airlines that have flown here before.One difference is Allegiant is going public. The Las Vegas-based carrier has filed its prospectus with the Securities and Exchange Commission, and plans


A look at the prospectus shows other ways Allegiant differs from airlines such as Southeast Airlines, TransMeridian Airlines and Hooters Air — airlines that have come and gone at Lehigh Valley International Airport.Allegiant company recorded a profit of $7.3 million in 2005, and had net income of $11.5 million for the first six months of the year, up 73 percent from the same period last year.

The company also makes money by bundling its flights with hotel packages and car rentals. It filed for bankruptcy in 2000 and reorganized, with a new business approach, in 2001.The company has targeted small airports that often did not have nonstop service to Florida or Las Vegas before it arrived. That means the airline typically doesn't directly compete with other airlines in its markets. That way, Allegiant intentionally avoids the overcapacity and intense competition at the larger airports.

Like other carriers that have flown to Florida from here, Allegiant targets the leisure travel market, and does not fly every day. Most companies in that niche have razor-thin profit margins, in part because leisure travelers are more sensitive to cost increases than people who fly for business. But the company, which employs about 1,000, appears to be doing a better job at managing costs than some of the other airlines. For example, the company arranges its flight schedule so that the crews sleep in their home cities. That saves the company lodging expenses, Squyres said.

It also charges passengers for minor items such as advance seat assignments. About 80 percent of tickets for its scheduled air service are sold on its Web site.Allegiant officials say the Lehigh Valley is one of its best markets. Indeed, LVIA has the most reservations of any airport Allegiant serves, according to the airline's planning director, Scott Tyra.That's good news for LVIA, which could use a boost. Its passenger traffic declined about 18 percent last year, and has been down every month of this year. Last month, passenger traffic was down about 5 percent.Allegiant will fly four times a week to St. Petersburg beginning Nov. 16. The airline, which will fly Tuesday, Thursday, Saturday and Sunday, will offer fares ranging from $59 one way to about $240. Passengers will typically pay about $79 one way, Squyres said.LVIA is the first of 12 airports Allegiant will name as departure points for service to St. Petersburg-Clearwater International Airport. By the end of the month Allegiant will be operating in 50 cities.

Other airlines that have flown here have expanded rapidly. Within two months of beginning service here, Hooters was flying to four cities from LVIA. In April of this year, less than a year later, Hooters ceased operations.Allegiant's expansion is a concern for George Doughty, LVIA's top official. He has tried to persuade Allegiant to move away from the very small airports it serves so it can increase service here. Right now, the airline does not have enough planes to add even more flights to St. Petersburg, Squyres said.Doughty is pressing Allegiant to introduce flights to other destinations in Florida. Allegiant had considered beginning service to Sarasota, before deciding on St. Petersburg.''We'll take anything to Florida,'' Doughty said Wednesday.LVIA will spend $127,000 to promote Allegiant's flights. The airport provides marketing money to any airline that introduces a new destination. Allegiant has already shot the television advertisement for the new flights; LVIA will pay for air time, Doughty said.Allegiant flew 8,966 passengers to and from LVIA in August, becoming the fourth-busiest airline here.

September 16, 2006

Eclipse

As the VLJ's begin to roll out, they will need maitenance areas around the country... Check out below. Albany already has Eclipsed lined up, we should target other VLJ's:

http://timesunion.com/AspStories/story.asp?storyID=516430&category=BUSINESS&BCCode=HOME&newsdate=9/13/2006

Groundbreaking set for jet service center

Eclipse to open airport facility for increasingly popular type of aircraft


COLONIE -- Capital Region residents will get their first look at one of a new generation of very light jets when Albuquerque, N.M.-based Eclipse Aviation breaks ground next month for its new Albany factory-service center. The twin-engine jets, which carry up to six passengers and are much smaller and lighter than traditional corporate jets, will be coming to market later this year and in 2007. One Eclipse 500 jet will be flown in for the groundbreaking ceremony Oct. 4 at 10:30 a.m. at Albany International Airport.

The new jet received provisional certification from the Federal Aviation Administration in late July. Eclipse spokesman Andrew Bloom said Tuesday afternoon that complete certification is expected in "the next couple of weeks." About 2,500 of the jets have been ordered. They sell for about $1.5 million each. So far, Eclipse plans major factory-service centers in Albany, Albuquerque and Gainesville, Fla. Four other sites haven't been announced yet.

The $8 million project, which includes the building, apron space and about $800,000 of equipment that Albany County Airport Authority will purchase and lease to Eclipse, is expected to be completed next summer.

Allegiant Adds 4

Allegiant announced the second set of 4 cities that they will fly from to St Pete's:
  1. Newburgh, NY
  2. South Bend, In
  3. Springfield, M0 Branson
  4. Toledo, Oh

Lets look at Newburgh and Stewart International. The distance from Newburgh to Sanford is approximately the same as ORH to Sanford. Not only has Allegiant continued to fly to Sanford out of Newburgh, but now they have added St Pete's as a destination. Assume for a second that passenger loads were not the reason Allegiant left, what in the Stewart International cost structure not only allows Allegiant to stay but add destinations, while they had to leave ORH???

Maybe the people who say General Aviation is the future for ORH are right, but I know we just blew a huge opportunity to grow with a great airline, Allegiant. It really bothers me to see Allegiant expanding, while we are on the sidelines. Mark my words, Allegiant is probably looking at other destinations as we speak. Here is my guess:

  • Myrtle Beach during peak season
  • Fort Lauderdale and Fort Myers

IMG where are you ????????

September 15, 2006

August Minutes Again

I was just looking at the August minutes. Take a look at page two and the BOLD section which basically says that the Aiirport Commission took a vote to rescind the imposition of taxes on the sale of aircraft fuel that started in 1989. Keep in mind that this was merely a recommendation, like the name change, to the City Manager and the City Council and that they should vote on it at the next City Council meeting to make it a reality...

Couple thoughts.

First, I have read all the minutes or airport meetings for almost two years and I have never seen a section printed in BOLD like this.. Why this in BOLD??? Why would the airport decide to do something drastic like this??? Obviously Allegiant must have indicated that they were losing money and needed help, so the Airport Commission approved this measure. I have no problem but how can a measure like this be approved with no explanation as to why?

Second, the measure did not benefit Allegiant, who announced the end of service 8 days later on August 23 with the last flight departing from ORH on September 3rd. If this had been done 6 months ago, would it have helped Allegiant to stay at ORH. Had Allegiant asked for this previously???

Third, the airport commission board minutes in January of 2005, when nobody was reading them, consisted of 9 pages full of information detailing a 58 minute long meeting . Now that the Airport Minutes are readily available on http://www.flyorh.com or the City of Worcester website, the 41 minute August Airport Board minutes was summarized in two pages and leave a reader with more questions then answers when they began.

Fourth- photo shoots?? Can the board please pass a measure that leaves the discretion as to whether or not we allow photo shoots at ORH up to the Airport Director and/or Airport Liaison??

Lastly it is pretty hard to believe that on August 14th, 8 days before Allegiant announces ending service to ORH, that there is no documentation in the Airport Board Minutes that Allegiant has been expressing grave concern and may pull out of ORH.

August Minutes for a 3rd Time

We have paid IMG approximately $100,000 to help us recruit commercial air service, after we paid them $100,000 for their study. You can not find any information on the status of how IMG is doing in their recruitment efforts?? I find it hard to believe again this information escapes the board meeting minutes and makes one wonder if there are not some violations of the Massachusetts Open Meeting Laws occuring.

80,000!!

Blog passed 80,000 page loads yesterday!!

September 14, 2006

August 14 Board Minutes

You can see them on-line at

http://www.flyorh.com/user/airport%20commission%20august,%202006.pdf

Considering Allegiant ceased operations on August 22nd, you would think there would have been more discussions regarding Allegiant at the Board Meeting on August 14th?

Allegiant Air and St Pete's

St. Petersburg, Florida - You’ll soon have some new low cost flights from the St. Peterburg-Clearwater international airport. Starting November 16th, you’ll be able to fly non-stop to 12 cities in the mid-west and eastern United States on Allegiant Air. Las Vegas- based Allegiant is making the St. Petersburg-Clearwater airport one of its focus destinations. Las Vegas, and Sanford/Orlando are the airline’s other two focus destinations.

It’s good news for an underserved airport that needs a new airline. The St. Petersburg-Clearwater International Airport had a record 1.33 million passengers in 2004, but that dropped to 600,000 passengers in 2005 after three airlines left in nine months. Maury Gallagher, Allegiant Air President/CEO: “We’re going to customers that are probably not coming to your area because fare does that. It’s a well proven fact in our business if you lower fares, people will travel.” Introductory fares the next three weeks are $59-dollars one way. Fares will range from $79 to $239 after that.

Allegiant Air will fly from St. Peterburg-Clearwater to Allentown, Lansing, Peoria and Rockford.
The airline is announcing four more destinations Thursday and four more by the end of this month

Arnold Palmer Airport


I do not know why I am bringing this up, since we will never have an access road. If we ever get an access road, it really should be via a new exit off the MassPike onto Route 56 in Leicester which has plenty of room for exit ramps. From there you take Route 56 up through Leicester into the back of ORH.

Just look what the Milbury exit has done for property values there. It would be a boon to Leicester and alleviate much of the East-West traffic across the City of Worcester. The only way this could ever happen, however, is if we were to sell the airport to MassPort.

Check this out:

http://www.thepittsburghchannel.com/news/9841918/detail.html

Adding an exit to the Pennsylvania Turnpike for the Laurel Highlands and Latrobe areas has been an idea kicked around for years, but now golf legend Arnold Palmer is speaking up on the issue.

The new exit would be where the current turnpike intersects with Route 981 in Mount Pleasant Township. From there, officials said it would be a straight, 20-minute shot to Latrobe.
On Tuesday, Palmer prompted the county's Airport Authority to pass a resolution supporting the "Laurel Highlands Connector

We have a road situation between dangerous traveling along Route 30," said Palmer.
With a recent surge in business development came increased traffic, and with increased traffic, came accidents, said Palmer. The Turnpike Commission said the project is being studied but is not on the front burner

September 13, 2006

Analysis

Since I started doing this, today marks the worse that I have felt about the state of ORH. Looking at ORH, this is what I see:

  • Allegiant, great second-tier airline servicing secondary cities to popular leisure destinations stopped service after 9 months.
  • Allegiant has not only not stopped service anywhere else, but have added six other cities to fly out of and has one one more destination St Pete's.
  • Airport administration refuses to believe there is anything wrong at the airport and all fault lies with Allegiant
  • IMG has been paid over $100,000 to recruit commercial service, in addition to the intial $100,000 for their study, and I have heard nothing.
  • Master Plan, Leigh Fisher, is still not done
  • New England Regional Air Study Plan, Louis Berger, is still pending
  • Approximately $300,000 remains in the Small Community Air Service Grant
  • RFP's seem never to get issued
  • Airport Commission board meeting minutes take over a month to become public.
  • Relatively new terminal roof leaks
  • Losing money at an approximate rate of $200,000 per month
  • 290 days left in current operating agreement, which when it ends the entire deficit (2,300,000) falls on the tax-payers of Worcester.
  • Worcester Telegram editorial basically says all is well, not to give up??????

Let me say here uncategorically all is not well and we seriously need to consider "retreating". Maybe we we will have some good news from Festival Airlines or IMG, but I doubt it. We need to seriously consider an outright sale, or 99 year lease, to MassPort (or another private party) or the scaling back to a General Aviation Airport.

September 12, 2006

IMG

Quick reminder. After the initial $100,000 study paid to IMG, we have spent according to my calculations approximately another $100,000 to help us recruit a commercial airlines. Lets hope that we see an update on how they are doing.

Even if it is bad, what are the airlines saying?
Are they scared off by Allegiant leaving???

Nemeth Story

Bob Nemeth story below in today's paper.

Typically 85 to 90 percent full, how can you say that?? I translate this to mean the "major" announcements coming in the future will be General Aviation related, not commercial air service. Not saying this is a bad thing, but if anyone expects to be flying out of ORH on a commercial airline this winter think again. Also it looks like Steve F's comment yesterday is quite true---"Obviously, the administration feels it's a problem with Allegiant, not something with Worcester, so it's unlikely that the city will change anything."



Looking aheadAirport effort proceeds on several fronts

The city manager’s report to the City Council tonight on passenger load levels on Allegiant Air flights to Florida offers more evidence that there is a healthy demand among area air travelers for commercial service at Worcester Regional Airport. Equally encouraging is the updated information on efforts to pursue corporate and general aviation opportunities. When Allegiant bailed out this month, nine months into its five-year contract, company officials suggested that unprofitably low passenger loads were a factor leading to the decision. The day-by-day list of load figures, from December through August, tell a different story: Typically, inbound and outbound flights were 85 percent to 90 percent full, even in the traditionally slow summer months. The report also allays concern about the effect of weather on service at the airport. Weather forced cancellation of Allegiant flights on only three days.

The strong passenger demand and reassuring reliability figures vindicate the belief of city officials and Massport, which operates the airport, that the facility can play a vital role in the region’s air transportation network. The figures constitute a valuable marketing tool for the airport as Massport and the city administration court commercial airlines. The report also reaffirms the administration’s commitment to expand general aviation, already a significant presence at the airport. Next month, Massport and the city plan to advertise formal “requests for proposals” for aviation-related development on two airport parcels. The intent, said City Manager Michael V. O’Brien, is “to capture the demand for hangar development and aviation-related business opportunities.” Seven companies already have inquired about the parcels, indicating the demand is brisk. Meanwhile, officials are pursuing another promising revenue source: corporate and charter jet services. A single large corporate jet based at the airport would generate hundreds of thousands of dollars in revenue annually, and Mr. O’Brien estimates that the total economic impact — including jobs, fuel purchases, maintenance and other support services — could exceed $1.5 million a year. The efforts are welcome. For city residents and policymakers to give up on the airport because of Allegiant’s disappointing retreat would be a mistake.

September 11, 2006

Loads

If the airport commission had posted the numbers from Allegiant every month in their board minutes like they should have, we would not be wasting all this time trying to figure out what the passenger loads have been the past nine months.

I believe Allegiant is a well-run business and if they were making money at ORH, they would still be flying out of ORH. We need to find out why Allegiant is still flying Newburgh/Portsmouth (similar distances to Sanford as ORH) and not ORH???
What makes these routes profitable and not ours??
Is it solely passenger count?
Is the price of fuel?
Was it rent??

I have no idea what the answer is but this is what we need to find out.
City Council Report:

http://www4.ci.worcester.ma.us/weblink7/DocView.aspx?id=147275&searchhandle=22385

We have spent alot of time on what the loads were and were not. In the end Allegiant pulled out because they were not making a profit. We need to figure out what we need to do differently so another airline that comes to ORH will make money and stay. Here are the average loads from the report in case you can not open:

Dec 80.04%
Jan 83.19 %
Feb 80.95%
March 84.95%
April 81.03
May 69.34%
June 71.32%
July 88.68%
August 84.77%

avg monthly load 80.47%

Lets hope Festival Airlines takes a serious look at ORH

Nick K

Today's paper:

http://www.telegram.com/apps/pbcs.dll/article?AID=/20060911/NEWS/609110590/1008/NEWS02

While the head of Allegiant Air said the airline pulled out of Worcester because the local market failed to support its service at a profitable level, City Manager Michael V. O’Brien has provided the City Council with a report disputing that contention. Mr. O’Brien cited statistics derived from reports generated by Swissport, the ground handler for Allegiant Air. He said Allegiant had strong passenger numbers that were consistently increasing, even over the traditionally slower summer months. He said passenger loads on flights in mid-June to mid-August were in high-80-percent to mid-90-percent range for inbound and outbound flights. He said passenger loads began to decline after Allegiant’s announcement on Aug. 22 that it was terminating its service here Sept. 3. “The statistics clearly show that Worcester and Worcester County did a tremendous job supporting Allegiant Air and its service at Worcester Regional Airport during its eight months of operation, evidenced by the broad community and media support and substantiated by passenger load factors that were strong, and more significantly, trending upward,” Mr. O’Brien said.

September 10, 2006

Rockford Airport

Letter in the the Rockford Star from their Airport Director. Has anyone heard anything from our airport director since the announcement by Allegiant to leave ORH??


Published: September 10, 2006
Opinion Columnists
RFD grows with more places to go
By Bob O’BrienSpecial to the Register Star

We have started on a journey of creating economic wealth and increasing the quality of life for the citizens of the Rock River Valley regional community. Your continued support and efforts have helped the Chicago/Rockford International Airport grow to the 226th largest passenger-service airport in the United States and the 19th fastest-growing air cargo airport in the world. Once again, we are asking you to show your support for the airport and airlines servicing our community.Allegiant Air has been successfully providing nonstop service to Orlando and Las Vegas for nearly a year. And now at 10 a.m. Wednesday in the Main Terminal, Allegiant will host a news conference to announce a new nonstop destination.This will be a great opportunity for us to show our continued support of the airline’s ongoing operation at Chicago/Rockford International Airport. We hope you will join us.

This is just one of the exciting announcements this week at the airport.In March of this year, Festival Airlines announced its intention of starting a new leisure airline for the Chicago region with its base of operations in Rockford. Festival is committed to our community and has invested more than $40,000 in being part of our On the Waterfront event held over Labor Day weekend.At 4:30 p.m. Thursday (date pending), Festival Airlines will host a news conference to announce these destinations that it will fly to from Chicago/Rockford International Airport and from Chicago Midway Airport. We hope you can join us for this exciting announcement, as it will be a great opportunity for area residents to meet Festival Airlines’ senior management and to wish them well on their business venture from Chicago/Rockford International Airport.And just last week, additional good news was announced. Beginning Oct. 8, United Airlines will increase its seat capacity to Denver by over 6 percent with the addition of a second nonstop flight on Sunday, increasing the total weekly flights from 13 to 14.We encourage you to continue your support of Allegiant Air, Apple Vacations and United Airlines, and please join us as we welcome our newest air-service partner Festival Airlines.

Bob O’Brien is executive director of the Chicago/Rockford International Airport.

FlyLeb

Here is an airport trying everything to wipe out a $200,000 annual deficit:


LEBANON – Lebanon Airport has broken ground on a project aimed at boosting revenue.
Planners broke ground Friday for a new ramp, apron and four hangars for corporate and private planes.
Lebanon Airport has been losing about $200,000 a year, and hopes the new construction will bring in increased revenue from leases, fuel and fees from aircraft based at the airport and fuel.

The companies that use the two corporate hangars will build and pay for their construction, airport officials said, then lease land beneath the hangars from the city."It will be a great boon to the local economy and certainly to our airport specifically," Airport Manager Steve Miller said. The airport will build the other two hangars using a $900,000 bond, then pay it off with money from individuals and businesses that lease spots in the two hangars. The hangars built by the airport are expected to bring in about $100,000 a year in revenue, while the land leases for the corporate hangars will generate about $35,000, said Jay D. Fitzgerald, airport operations supervisor.

In addition, every airplane based at the airport must pay a New Hampshire registration fee depending on the value of the aircraft, part of which goes to the airport. Also, fuel flow fees of 4 to 6 cents per gallon that fliers pay go to the airport. (A corporate jet uses nearly 50,000 gallons of fuel per year, generating some $2,500 in fuel flow fees.) The airport has a yearly budget of about $800,000 and brings in about $600,000, said Miller.
Construction of the ramp is scheduled to finish in mid-November. Work on the hangars will begin in the spring

September 08, 2006

Tampa/St Pete's added by Allegiant

I have been saying for months (patting myself on the back) that St Pete's would be the 2nd city in Florida for Allegiant. Today looking at the YNG blog, the following link was mentioned:

http://www.allegiantair.com/jobs/job_fair.htm

Not only has Allegiant not pulled out of any other cities, but have added I think added 6 orgiination cities and one new detination (Tampa/St Pete's). Wonder if we called Alegiant back and offered whatever remained in he DOT Small Community Air Servie Grant, approximately 300,000, would they come back???

Lets hope Festival Airlines considers ORH??

Private Jet Boom

Good story:

http://www.forbes.com/global/2006/0918/022.html?partner=yahoomag

Thanks Harry

Allegiant Adds three cities

September 7, 2006ALLEGIANT AIR ANNOUNCES NEW NONSTOP AIR SERVICE TO ORLANDO: FAYETTEVILLE TO ORLANDO FOR JUST $49* (Fayetteville, NC.)- Low-cost airline Allegiant Air, LLC today announces new, nonstop jet service to the fun and sun of Orlando, Fla. from Fayetteville, NC. beginning Nov. 7.

September 6, 2006ALLEGIANT AIR ANNOUNCES NEW NONSTOP AIR SERVICE TO ORLANDO: KINSTON TO ORLANDO FOR JUST $49* (Kinston, NC.)- Low-cost airline Allegiant Air, LLC today announces new, nonstop jet service to the fun and sun of Orlando, Fla. from Kinston, NC. beginning Nov. 10.

September 5, 2006ALLEGIANT AIR ANNOUNCES NEW NONSTOP AIR SERVICE TO ORLANDO: SHREVEPORT TO ORLANDO FOR JUST $59* (Shreveport, La.)- Low-cost airline Allegiant Air, LLC today announces new, nonstop jet service to the fun and sun of Orlando, Fla. from Shreveport, La. beginning Nov. 15.

Rockford

The example all secondary airports should follow has updated their web site:

http://www.flyrfd.com

now check out

http://www.flyworcester.com

September 07, 2006

Community Meeting

I did not attend the last community meeting by Leigh Fisher & Associates. Please note that it has now been added to the airport website:

http://www.ci.worcester.ma.us/air/pdf/ORHMasterPlanUpdate.pdf

Alot of the information in it, I have seen before. It is, however, a good summary and if I am reading this correctly (page 24), Leigh Fisher is recommending that we maintain FAA Part 139 certification (commercial air service). This, however, was recommended when we still had Allegiant, I wonder if this will change(General Aviation Airport) in their final recommendations.

Lets also hope that their Land development--market driven is a little more specific..We have waited three years for this Master Plan the report should address items like whether or not we should have another FBO or dedicate land development to corporate hangars.

September 05, 2006

DOT Small Community Air Service Update

I mailed copies of the three qtrly reports that I had received to our airport liaison and asked him to mail me whichever ones that I was missinig. Today I received one in the mail, here is an update as to how monies have been spent:

  • IMG 49,125.51
  • Advertising 44,989,37
  • Events 12,276.82
  • Radio 1,500.00
  • Docent Services 1,260.00
  • Printing 1,001.15
  • Fliers 920.00
  • Posters 740.0

Total 111,812.90

We submit these qtrly reports to the DOT and they reimburse us (assume all expenses are appoved) at a 72.73% level or $81,321.49. Here is my question, the total Small Community Air Service Grant was $442,615.00. If all the expenses from the 4 reports are submitted and the DOT mails us $81,321.49, we still have $361,293.50 left unused in the grant that expires 9/10/2007.

Parking

Sorry, I know the numbers are hard to read. I am trying to print out 4 columns (month/Revenues/Expenses/Net).

Month Rev Expenses Net


12/5 2,350 1,112.91 1,237.09
1/6 3,770 1,196.00 2,574.00
2/6 7,715 2,394,.05 5,350.95
3/6 13,006 3,411.25 9,594.75
4/6 11,879 3,164.70 8,714.30
5/6 6,945 3,124.52 3,820.48
6/6 7,308 2,841.46 4,466.54
7/6 7,217 2,848.04 4,368.96

Totals:
Gross Receipts: 60,190
Gross Expenses: 21,092.93
Net Revenues to ORH 40,097.07

Although $40,097 is alot of money, I still believe in the whole scheme of things we could have gotten a much bigger return in ticket sales and good will, if we had offered FREE PARKING. All the other successful secondary airports in the country, who have been able to recruit and retain airlines offer FREE PARKING.

Guess in the end we technically offer FREE PARKING now.

September 04, 2006

Boyd Aviation

As far as I can tell these guys are the best consultants in aviation. I was on their website tonight and check out their presentation in May on trends in the airline industry. Very very good.

http://www.aviationplanning.com/RAAPres/BoydRAAPres.pdf

Skybus

Although the emphasis will be on 1) GA activity and 2) cutting expenses, I will keep updates on commercial airlines. Here is a small piece I ound on Skybus. Keep in mind that alot of these start-ups come up with graniose predictions like this, but never have their first flight (DJ Air Group).

http://www.midhudsonnews.com/News/Skybus_SWF-29Aug06.htm

Stewart Airport – Startup airline Skybus Airlines is “very interested” in flying from Stewart Airport at Newburgh when it starts up operations next year. The airline, based in Columbus, OH, hopes to begin flying by the end of the first quarter of next year, CEO Bill Diffenderffer told MidHudsonNews.com Monday.
“Stewart is something we are considering,” he said. It is one of many cities under consideration in New York State.

Stewart spokeswoman Tanya Vanasse would only say she has heard of the airline, but would offer no other comment about the possibility of it providing service to the Hudson Valley. Skybus expects to serve up to 25 cities non-stop from Columbus using full-size jets and offering discount pricing. The airline’s business plan models that of Ryanair, Europe’s most profitable airline.

Diffenderffer previously was a partner in IBM’s global travel and transportation consulting practice.

Fuel Comments

From http://www.airnav.com

From Bob Henry on 08-Apr-2006
Excellent service! Called ahead the day before arrival and they were waiting for me. Avis dropped the car for after hours pickup, n/c. Line personnel were prompt, courteous, diligent and exceedingly helpful. They'll earn your business.

From John Dolan on 18-Mar-2006
Stopped here to visit the Higgins Museum of Armor. Fuel was $4.96 but the waived the $10 parking fee. Very friendly desk person but they'd sell a lot more fuel with a more reasonable price. Avis, in the terminal 200 yards away will drop off the car at the FBO while Enterprise is an off field rental. Museum was worth the visit.

From Steven Oxman on 28-Nov-2005
The people were great, the facilities were nice. Rental car arrangements with Enterprise were great. However, after purchasing over $500 of fuel to top off, they charged me $200 per night to hangar my plane (Twin Beech) for 2 days. So my two day stay there cost me nearly $1,000.00. Going to ORH saved me nothing in expenses compared to BED and I had to drive over one more hour to get anywhere I was going. I think management their needs to rethink their policies if they want business at ORH. I was totally surprised with my bill there.

From John Watkins on 10-Sep-2005
As of 9Sep05 100LL was $5.74/gal. I found a way to park somewhere else on the airport for 8 hours and stopped at Brainard on the way home for $3.95 fuel. Prices at other area airports I called were in the $4-4.50 range. I think Swissport prices are a rip off.

From Dave O'Donahoe on 27-Jun-2005
The security at this airport is ridiculous. Every time I go there I feel as though I have flown back in time behind the iron curtain. I know that this has more to do with Massport than Swissport but combined with expensive gas and high fees it's enough to keep me miffed. If not for the terrific avionics service at the Radio Shop, worth traveling for, I would never go back.

From Ray Lupkad on 03-Jan-2005
Excellent service, easy arrival and departure. Parked right outside of FBO, with good facilities. You are not able to leave unexpectedly at night as the planes are locked on the ramp. Was great to see a significant reduction in fuel prices.

From Paul Hertzberg on 16-Sep-2004
I had an excellent experience last time. The rental car was provided per the arrangements on very short notice, and the fueling was done per plan. Ramp fees were waived with the fuel purchase.

From Mark Coleman on 26-May-2004
I had an average experience but didn't get to meet the manager - :) . I requested a top off, an overnight tie down and a taxi. Taxi came quickly and the plane was topped off when I came back the next day. Not a remarkable place but no complaints with service.

From Tim Roberts on 01-May-2004
Very bad experience. The manager was very determined to make us miserable. However the woman at the front desk was extremely friendly.

From Jim Gilpin on 09-Oct-2003
Called FBO for pricing. Jet A is 3.49/gal with minimum purchase of 80 gal

RFP's

Please note sometime RFP's can just be an excuse. "We are putting together an RFP on that". If I told you how many times I have heard that the last five years, you would be amazed. Check out last January Board Minutes in regards to the RFP for the Restaurant. Although it was 19 months ago and we must have gotten it back from MassPort, it has not been issued. Why?? The airport administration did not want to issue it unless there was some interest.

Believe me I can understand that they did not want to waste time, but what do you got to lose?? At the same time we tried to create some interest start talking about an RFP for the restaurant slot, maybe that would cause some interest. You do not own a plane, but I would imagine that a place to eat might even draw people to ORH??

We need to make sure that the RFP's for the land need to be put out in a timely way and make sure what is needed at ORH is requested.

Bill

General Aviation

Now that Allegiant has pulled out, as I have said before, I think it will be quite difficult to get another commercial airline to commit to ORH in the short-term. That leaves us with two options to reduce a $2,300,000 deficit either 1) cut expenses (as Jahn as pointed out numerous times) or 2) increase General Aviation revenues. I am going to request a break-down of expenses and forward it to Jahn. Lets take a moment and read a comment last week from an anoymous blogger that I think is worth of a second look:


We need to scale back and look at what we have and support that. We have GA business there doing well. Lets see how we can support them. Maybe incentives of some sort. Like we will fix the roof that leaks or we will fix the heat for the winter. We 13 or so colleges in the area. There must be people going to them that want to fly. I would say all of the business at ORH would do better if accomadations were better. Offer real low lease of land if they will build a building. Offer a long time lease if they will build.

Make whatever it is appealing to business. Every business in aviation is crucial to which airport they go to. That airport will make or break a business. So the business must ask, why should I go to ORH? What does this airport have to offer that will benefit me the most? This is were incentives comes in to play. But whatever it is. Make it availible NOW. People want to build NOW. Not when the study is done or the master plan is done. Most other airports around have land avialible now. Even if more than 1 party is interested in it. It's first come first serve.

People from other airports like to train here because it has all the good stuff without the traffic. But they will not stop here because there is no reason to. They don't even know anything is there except for expensive fuel. Lets capitolize on what we have. Not what we don't have. You can't build a house without a foundation. We have the start of a foundation but we to finish it. We have awsome runways and taxiways with lots and lots of room. Pilots say all the time that this place is great. Meaning, flying into it and getting around by plane. We have the potential for great foundation. But WE need to build it from the bottom up 1 brick at a time. The city has a problem of jumping into a pool before they know how to swim.

Rome wasn't built in a day.

September 03, 2006

Concord, NC

http://www.independenttribune.com/servlet/Satellite?pagename=CIT%2FMGArticle%2FCIT_BasicArticle&c=MGArticle&cid=1149189904767&path=!news

The Concord Regional Airport wants to add two new hangars.

http://www.ci.concord.nc.us/airport_0.asp

Tonight, Concord City Council will consider leasing airport property to two companies - S&D Coffee and BNW Properties - that will independently build their own hangars, both of which are said to be worth more than $1 million. The leases will be for 20 years, with an option of one five-year renewal. At the end of the lease, the hangar will become city property. S&D Coffee will lease its property for $391 per month and plans to build a hangar no smaller than 10,000 square feet. The hangar will also include parking for vehicles, offices, a lounge area and restrooms.

Dick Lewis, aviation director for the airport, said at a Tuesday City Council work session that S&D officials fly regularly all over the country. The move to a new, larger hangar will give S&D the ability to add aircraft, Lewis said, which would also boost the tax base of the airport. S&D is leasing its current hanger with Concord and can request an assignment of that lease to another company, which would be a City Council decision.
Lewis said S&D’s move to a new hangar will help create a “domino effect” in which the company’s current hangar opens up for another organization’s planes, and in turn, opens up more plane parking space at the airport. And more planes means more tax base, Lewis said.

At Tuesday’s work session, Lewis reported the airport has about $160 million in aircraft. BNW does some flying for race teams at the airport but has no hangar. The company’s move into a new hangar - leased for $315 per month and to be built no smaller than 6,400 square feet - will also open up space at the airport for new planes, which again increases the tax base, Lewis said.

Annette Privette, the city’s public information manager, said each of the hangars could be worth between $1.5 million-1.7 million. If approved, Lewis said, the companies must start building the hangars within six months, finishing construction one year after that time. Also, if the leases are approved tonight, only one lot for a corporate hangar will remain. “We’re almost built-out in hangar area,” Lewis told City Council.
And the grassy area south of the runway, known as the “salad bowl,” will be the next spot for hangar construction. To this end, and also at today’s meeting, City Council will consider authorizing city staff to undertake large hangar design for potential development for the south hangar area. “(The design work is) more of a marketing tool,” Lewis said. “We know what we want to do with it. We want to get a visual. I want to show the work we can market to our clients. Most people are visual.”
The city owns the site, and the study will detail what can be done to the area, which sits at a lower level topographically than the rest of the airport.
Assistant City Manager Jim Hipp said the study would also recognize the physical realities of the site and demonstrate how those realities can be tackled.
Lewis put it simply.
“We’ve got to bring in more dirt to fill it up.”

Primary Airport Status

Just thought of this today. An airport that has primary airport status, which is attained when you have 10,000 emplanements, entitles the airport to $1,000,000 from the FAA. Although we did not have 10,00 passengers in 2003, 2004 or 2055, we were still given the $1,000,000. At the same time we were endanger of losing primary airport status and the $1,000,000.

Allegiant alone qualified ORH for the 1st time in 4 years to attain primary airport status ensuring ORH of the $1,000,000. For this we should thank Allegiant.

Hangars

Check this out:

http://www.flyleb.com/HangarIntrestForm.aspx

Can someone tell me if we have available hangars for rent?

Can anyone else tell me how plans call ORH home and has this number been declining or increasing?

Jahn

Jahn keeps asking for expenditures and I will try to accomodate over the next month. In the meantime, check out page 19 of 91 in the IMG report.

http://www.ci.worcester.ma.us/reports/IMGFinalReport.pdf

It gives a pretty good snapshot over 7 years, here are some highlights:

  • total operations went up slightly
  • commercial passengers went to 0
  • expenses increased $867,803 per year, approximately 40%
  • personnel expenses increaseDd59% --757,448 to 1,202,801 per year (445,353)
  • friinge benefits increased63%%-- 262,999 to 428,994 (165,995)

Looking at increasing expenses like this, you would think the airport would be growing dramtically between 1998-2004. How did we offset these dramatic increases in expenses, check out the MassPort Funds line-- zero to 1,632,460.

Besides focus on GA business, we need to get a grasp on how expenses are increasing so much?

300 Days

Not only is today the last day for Allegiant Air at ORH, it marks 300 days from today the current operating agreement with MassPort ends. The last flight from Sanford departed 11 mintues and go here 19 minutes latem while the last flight was about 25 minutes behind schedule on an very foggy day . No matter now you feel about Allegiant's departure, I think everyone has to admit that Allegiant provided very reliable affordable service the 9 months that they were here including their last day.

Right now we need to put that behind us... There is alot to do the next 300 days:
  • Leigh Fisher Master Plan
  • New Regional Air Study Plan
  • Extenion of the agreement with MassPort

These next 300 days will be quite pivotal in deciding what kind of airport that we will have 10 years from now.

Lastly my brother-in-law was on this last flight back to Sanford, called me and told me that after he got through the security the terminal section which contains the gates had many many leaks in the roof.. Has anyone heard about leaks in the terminal roof before?

September 02, 2006

Million Air ---Provo

Million Air FBO below:








Million Air, the second largest fixed-base operation (FBO) chain in the world. Picture of Million Air FBO in Provo above..

Dave Houghes made a good comment below, the purpose of the blog is to show support for the airport. There has been alot of frustration the past week with the ending of service by Allegiant, lets put that behind us. Now we need to focus on the general aviation business, since I do not see any commercial business the next 6-9 months.

It seems to me the having a good FBO and a place to eat would help GA business alot. Lets focus the next couple of months on the FBO and whether all of things that being said are true, the RFP's for the land when are they coming out and should one RFP be for another FBO?? Lets hope the Master Plan from Leigh Fisher and Associates addresses some these questions.

FBO

I have heard various people complain about SwissPort, the FBO at ORH, here a few of the things that I have heard:
  • Gas prices are way too high
  • Airplanes avoiding gassing up at ORH
  • US Air Express pulled out of ORH because of SwissPort

Since we have availabe parcels, why can't an RFP be put out for another FBO??? Check out this story on Million Air:

http://www.capitalnews9.com/content/headlines/?ArID=190020&SecID=33

Would you fly million air? If you have the money, you can. Million Air has landed at Albany International Airport, and what better place to celebrate than at the Million Air terminal. The terminal is set apart from the main terminal and serves business jets and aircrafts flying in and out of the Capital Region.

The flying experience is a bit different with members of the staff acting as a conduit between flyers and the city. Staffers make it a point to familiarize their guests with whichever city they're staying in and pay close attention to any concerns they may have at the end of their trip. It's all about customer service and satisfaction.

Million Air is based out of Texas and now has more than 30 sites across the US. Now since it's called Million Air, all flyers are treated as such, and are even give a lotto ticket when they board.

September 01, 2006

Anonymous

Tom Moore just left a comment that deserved a blog. Let me take this moment to pat Tom Moore, Tim MacDonald and myself on the back for actually putting our names out there. I can understand, however, how some people may be shy, or their job itself, may force them to post anonymous/ fake name blogs-fine.

This got me to thinking maybe that this may be one of the biggest problems with our airport. Everyone is afraid to talk and the overall cloud of secrecy as evidenced by our own airport commission minutes on http://www.flyorh.com the past year:
  • passenger numbers from our sole commercial carrier-- not there
  • IMG, how are they doing with over $200,000 of our money--not there
  • Allegiant indicated that they were concerned the past couple of months and may want to leave ORH, what are we doing to keep them--not there
  • $455,000 for the Small Community Air Service from the FAA, how are we spending it--not there
  • Parking, how much are we making--not there
  • budget--not there. How can the budget not be part of the monthly meetings?

Due to the lack of a free flow of information, instead of trying to focus on our deficiencies as to why Allegiant pulled out of ORH, we waste time on things like what the Allegiant passenger loads were and were not that past week. Maybe some of our answers are in the August Airport Commission minutes, but we can not see them until the September meeting when they are voted on. Then we need to wait typically another week after that until we get them e-mailed or they are posted on the City website. By the way, has anyone heard anything regarding the departure of Allegiant from ORH from our Airport Director or Airport Liaison?

If we truly want ORH to be the airport that I honestly feel it can be, we need to have a more open process, where information is readily available as well an airport management, and hopefully less people need to be anonymous. There will be no "magical" answers in the Master Plan from Leigh Fisher, the New England Regional Air Study Plan from the Louis Berger Group or from the recruitment efforts by IMG. The answers are right here and need to be developed through lots of hard work or ORH will not survive.

As I See It

In case anyone missed the "As I See It" on page 13 of today's paper. Maurice Gallagher, President and CEO, of Allegiant Air wrote the following letter.

http://www.telegram.com/apps/pbcs.dll/article?AID=/20060901/NEWS/609010432/1054/OPINION

Allegiant’s early exit: It’s just a matter of economic realities

In the past week, several articles have appeared in this newspaper disparaging Allegiant Air for our decision to discontinue air service to Worcester. Local politicians have been among the most vocal critics. One politician was quoted questioning my personal integrity while categorizing me as “an example of the charlatans that exist in the corporate world.” A simple truth underlies the events of the past week: Corporations must generate profits or they die. This is both a fact as well as the catalyst for our nation’s economic prosperity. Allegiant Air would never categorically commit to any market for the “long term” without regard to economic performance. That said, Allegiant would also never intentionally enter a new market expecting it to fail.

The airline industry is littered with the carcasses of companies run by management teams that were afraid to make difficult decisions about markets unable to economically sustain profitable air service. This is not to say that Worcester would be unprofitable for another airline with different criteria for acceptable economics. However, at Allegiant, all markets we serve must either stand profitably on their own or at least show a clear trend toward profitability. Worcester did not meet either of these criteria. Allegiant does not fault anyone in particular for this result. To the contrary, we believe local Worcester officials performed to their best of their abilities to provide the community with affordable nonstop air service to Orlando. Similarly Allegiant Air management believes it is acting to the best of our abilities in making a straightforward business decision to eliminate future losses at Worcester.

To summarize: In our view the market has spoken; it does not support Allegiant Air service at Worcester at a level necessary to sustain profitability. We sincerely believed Worcester would be a good market for Allegiant Air, but we were wrong. We hope Worcester finds another airline for which it is a good market, we thank those of the Worcester community who flew us during the past year and we wish the Worcester community the best.