October 18, 2006

Allegiant Operating Agreement w/ ORH

Section 12.1 Termination

Either party may terminate this Agreement without cause at any time by providing not less than thirty (30) days prior written notice to the other party, in which event this Agreement shall terminate on date set forth in such notice (but not less then 30 dyas after the date of the notice); provided, however, that Allegiant agrees to keep the City and Authority apprised of the existing and future market demand (bookings) regularly throughout the Term (December 22, 2005 thru December 21, 2010), and will contact the City and Authority as soon as possible upon determining the market is experiencing difficulties or is at risk.


My point here is that I believe Allegiant did notify the City and Authority that it was in fact experiencing difficulties. Why then was everyone upset with Allegiant when they exercised their rights under the Agreement when they provided a 30 day written notice after initially expressing their concerns??


PS September 11, 2006 Airport Board Minutes still not on-line today.....

5 comments:

Anonymous said...

Open question to employees , tenants , and customers who currently work and utilize the airport. What do you want Worcester Airport to be. You're the representatives not only of the airport , but of Worcester for alot of people who fly into the airport.

Bill Randell said...

Paul:

I know that I should let others answer but real quick. It needs to be a miz of General, Corporate and Commercial.

Commercial only needs to be some direct flights to points south (Florida) and maybe a Myrtle Beach during their peak season. Does not even have to be everday day.. We do need, however, multiple daily flights (at least to) to a major hub; for example, NYC to connect direct to anywhere.

General and Corporate need better hangars and a reason to come to ORH. By that I mean a more competitive FBO and a place to eat.

Thanks

Anonymous said...

I'll offer my opinion and I am neither a customer nor a tenant nor an employee unless renting a car there once qualifies.

As a taxpayer, Id like the airport to be self supporting, efficient, effective, and deficit free as a city enterprise should be.

Continued redink in the long run means there will be no customers nor employees nor teanants.

Bill Randell said...

Jahn:

Dittos.

Bill

Anonymous said...

I was looking at the MP annual report, specifically page 92, ten year traffic statistics. See link in post entitled MP website. I am throwing out a lot of figures here that coould probably be formatted for a better presentation. I am wondering how those more familiar with aviation than me would interpret these stats?

I think we have to keep Sept 11 in mind here but, trends I noticed in the last 10 years:

1. TOTAL Flight traffic is DOWN 10% over the last 10 yrs.

a. Domestic and Int'l flights show NO INCREASE over the 10 year period.

b. Regional flights are DOWN 25% over 10 years.

c. GA flights are up 33% over the 10 years.


Questions:

A. Should we be chasing GA business or Comm. air service at ORH?

B. Why does Logan need a new runway if total flights are off by 10% over 10 years and the decrease is in flights using larger planes?


C. Is Logan losing flights to and uncompetetive with Bradley, Green,& Manchester?




2. Passenger count is UP 10% over the 10 years

a. Domestic passenger count is barely up over the 10 years.

b. Int'L passenger count is up 25% over the 10 years.

c. Regional passenger count is up about 35% over the 10 years.

d. GA passenger count is up 35% over the 10 years.


Question:


A. With domestic passenger count and domestic flight numbers about level over 10 years does ORH belong in the comm. air business and will ORH have to cannibalize Logan (and others) to succeed in comm. air travel and if MP owned ORH will they allow that to happen?


3. Average passengers per flight for domestic flights is currently running about 95 per domestic flight. Allegiant's MD 80's carried 130(??) passengers x 80% load factor = 104 passengers per flight....well in excees of Logans average. So just why did they pull out?