In the August Airport Commission Minutes (http://www.flyorh.com/user/airport%20commission%20august,%202006.pdf), Airport Director Eric Waldron mentioned in in 4) Reports of the Airport Director:
"we do not have figures for their "yield" for the month of July and that remains, as reported last month, a significant concern for Allegiant and Worcester."
As a result of this mention in the Airport Board Minutes, I asked for these "yield" figures for the month of July, as well as prior months. Here is the response from Airport Liaison Niddrie:
During his monthly reports, Eric Waldron, Airport Director simply described what figures play into the development of the yields for an airline and that Allegiant and Worcester had concerns with Allegiant's bottom line figures from Worcester. There was no written information presented to the Commission at any time.
Obviously I am aware that none of these numbers were presented to the Commission, since they are not present in any of the minutes. Maybe a better questions should be why wasn't any writtten information presented each month on the "yield" numbers during the Airport Commission meetings, if they were in fact such a concern to Allegiant and the City of Worcester?? Maybe if these had been presented monthly since Allegiant's arrival, the Commission and the public would have been aware of Allegiant's problems and it would not have been such a surprise? Better yet, maybe the City of Worcester could have made changes when they saw the negative trends and made changes to have help keep Allegiant at ORH..
If you review the August minutes (http://www.flyorh.com/user/airport%20commission%20august,%202006.pdf) , Airport Director clearly states that he is awaiting figures that represent a yield. Now we are being told that there are no such reports and Eric Waldron was merely discussing what figures play into the development of the yields. In the private sector, these figures are referred to as Revenues and Expenses.
WRRB/Telegram District City Council Forum 10/18
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6 months ago
4 comments:
I see nothing in the minutes that says the airport director is awaiting figures on the yield. Where am I missing it?
I would doubt Allegiant would give "yield" figures to anyone. I would think someone could figure out if you new their average ticket price in a given month along with the numbers released by the City Manager on passenger levels. The bottom line is they said they were loosing $$. They must be a "bottom-line carrier" not a "market share carrier". They could make more money somewhere else. This does not mean someone else could not make money. Most carriers would kill for the numbers they got out of Worcester for passenger levels- at least as I read them from the City Manager's release.
"We do not have for their "yield" for the month of July" in Section 4 of the August Board Minutes. Maybe I am reading this wrong, but I read this to me that he would be getting them for July?
Jim, I do not know if you are aware of this but airline companies have become to realize that if they are a "market-share" company, they go out of business. Not only is Allegiant a "bottom-line carrier", but so is the airline industry after all of these bankruptcies.
Most carriers would kill for these passenger levels?????? If this is the case Jim, why hasn't ahyone stepped in when Allegiant departed??
Jim:
How can you seriously say that airlines would kill for the numbers Allegiant got out of Worcester when 1) Allegiant has not pulled out of any other city and 2) no other airline has come to Worcester?
Bill
Jim:
I hate to make another comment, but here goes. You do make a good point, however, when you say that you were surprised Allegiant would give their yield figures. I agree, that was maybe why it peaked my curiosity when I read about them in the August minutes.
Jim, how did you know the "yield" figures were a result of the average ticket price times the passenger levels?? Who told you that????
Jim, you make it sound like being a "bottom-line" company is a bad thing. Gaining larger market share while you are losing money only ends up in bigger losses. The only way to run a successful company, whether it is a airline or not, is to look at the bottom line.
Lastly, it amazes me you can say other carriers would "kill" to get the Allegiant passenger levels,when not one airline has hinted at coming to ORH.
My point in all of this is simple. Allegiant is a very well run company that is focused on the bottom line, like any well run company. Instead of the City of Worcester trying to figure out why Allegiant was not making money and had to leave ORH, we have guys, like Jim, trying to say somehow it was Allegiant's fault.
Until this "Jim" attitude changes we will continue on the same track since nothing is wrong at ORH, despite the fact we have no passenger service and lose $200,000 per month.
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