Scheduled Service
Dec. 2006 Dec. 2005 Change
Passengers 213,627 127,258 67.9%
Revenue passenger miles (000) 198,393 137,537 44.2%
Available seat miles (000) 253,188 178,795 41.6%
Load factor 78.4% 76.9% 1.5 pts
4Q 2006 4Q 2005 Change
Passengers 531,718 323,405 64.4%
Revenue passenger miles (000) 512,657 349,668 46.6%
Available seat miles (000) 652,469 446,680 46.1%
Load factor 78.6% 78.3% 0.3 pts
YTD 2006 YTD 2005 Change
Passengers 1,940,456 969,393 100.2%
Revenue passenger miles (000) 1,996,559 1,029,625 93.9%
Available seat miles (000) 2,474,285 1,294,064 91.2%
Load factor 80.7% 79.6% 1.1 pts
Same Time Next Year
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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
15 comments:
Go ahead Bill say it! "We hate to be the ones to say we told you so, but .... WE TOLD YOU SO !!!!!"
:-)
Harry Tembenis
Worcester, MA
Harry:
Allegiant was the perfect airline for ORH. We could have been riding this wave with a 2nd Florida destination (St Pete's), their IPO.
Instead we have the label of the only city that Allegiant has pulled out of recently. If you do not think that this sends a powerful message to SkyValue, Skybus or anyone else, you simply have no idea what you are talking about.
Keep in mind that Allegiant also helped us get our 10,000 passengers, which maintained our primary airport status and $1,000,000 from the FAA. Right now we are 10,000 passengers short of that goal in 2007.
Harry, why did you get me going!!!! Too bad nobody has tried to figure out what made ORH different then all of the other cities. How come they could not make money here, but they did everyone else especially when our load factor looks in line (80%)??
Bill, with Allg. leaving and now Massport a virtual shoe in.......and .....board meetings that are say basically nothing.....and ...Murray saying Allg. stabbed us in the back....the inability to getany meaningful answerss to citizens requestrs........one has to ask......complete and utter disreagard for the bottomline potential at ORH......what kind of politics are going on behind the scene?
Citys labor union is one that comes to mind....what else?
Not sure how labor unions would have much of an influence on ORH since there are so few jobs. I will tell you this Allegiant left ORH for one simple reason--they were not making money.
The question is why not?? I estimated their loads to be 80%. Now I see that the average load, per Allegiant's own numbers is 80%. Why then did Allegiant leave ORH and nowhere else??
What was it in our cost structure that made ORH a loser for Allegiant versus the other markets? Or was it the elasticity of the ticket price? In other words if they went up on the prices that they needed to make money, we had too much leakage to the other airports?? In other words was it a COST or REVENUE problem that created the losses..
Bill:
Jahn brings up a good point. We heard the city's side and we heard Allegiant's side. Somewhere in the middle is the truth. I still blame Massport. That is my conspircacy theory.
What really sucks for me was I was going to book a family vacation to Disneyworld with them (Allegiant) for either February or April of this year. The whole reason I was going to do it was:
A) Very competitive costs compared to other area airports.
B) Convenience! .....C'mon they were the only show in town! No Boston/Providence/Hartford/Manchester commute/headaches here.
With them now gone forget it. I will keep that money.
I still can't comprehend why an airport in the BUSIEST AIR CORRIDOR IN NORTH Freakin' AMERICA cannot get air service other than to blame mismanagement and the current management is Massport, hence they bear the brunt of my fury. A clear message was sent when the unfortunate Mass Pike connector incident took that innocent woman's life. Rather than Massport and/or the Romney Administration showing some leadership and cajones and utilizing ORH to the maximum when the Pike connector to Logan was shut down for months what did they do instead? Bus people to Manchester, NH for free !!!! Give me a break !!!!!!!!!! You could have taken Christy Mihos' campaign ad of all the politicians with their heads up their butts about the Big Dig and easily substituted them with Massport and the Romney Administration's handling of ORH in that unfortunate disaster. Heck you could even through in Bob Nemeth for good measure, too !!!
C'mon people, wake up and smell the jet fuel !!!!!
Harry Tembenis
Worcester, MA
Harry:
The whole conspiracy arguement holds some water. Lets assume I own a successful business. A family friend owns a similar business on the other side of town.
I help him out with some bills to keep him afloat, but will I tell him every secret that I have to keep my business in the money?? No, I would worry that he may learn fast and take my customers.
Take it a step further. What if I see myself making a cash offer the business down the road?? I may have a vested interest in driving his business down even more, although it will cost me more in the short-term I will save money in the end.
I truly do not think this is the case, but it has some validity.
Harry:
thanks for not being anonymouse
Bill
For those that missed the Christy Mihos ad, here it is...
http://www.youtube.com/watch?v=B7dfzNHfQmA
You could substitute Big Dig with ORH debacle.
Harry Tembenis
Worcester, MA
Bill, it had to be a cost problem. They were getting the load factor....80%..........my guess is there are only 3 expenses that could vary at ORH relative to other airports
1. "terminal" expenses to land
2. Fuel expense
3. Fuel tax expense
Two of these three are controllled by city. City should have 1st cut/elimanted terminal fees b/c we got the same expenses up there with or w/o Allegiant. Give it away just to keep them. If we couldnt legally reduce or eliminate fuel tax, we could have given them advertising subsidies.
My speculation, ALLeg. went to the city looking some freebies and someone at city drew a line in sand and Alleg. said hey......here's our 1 month notice....and Tim (3 time)Murray calls them backstabbers on the way out teh door. Murray basically gave them the St Gobain treatment and its going to cost us dearly as far as future re cruitment efforts go.
Just eliminating the effeect of the fuel was worth about $500 per flight. Now Harry check my math here, but for $195,000 we could have subsidized 390 flights?
For any newbies 195,000, will be the lastest giveaway to the City's artsy, nonprofit crowd.
I am going out a limb to say that place will be the next Bijou !!!
On a different note, to use a case study of the what the eventual ORH/Massport situation could look like, take a look at the following example:
Springield, MA brings in the MCCA (Massachusetts Convention Center Authority) to run the Sprinfield Civic Center (now Mass Mutual center); the whole sales spiel about bringing conventions to Springield I'm sure was used as the big selling point, etc. Springfield gives MCCA a sweetheart deal to run the Mass Mutual Center. All the pols and head honchos of MCCA give a 'drink the MCCA Kool Aid' rosey scenario.
Now let's fast forward and check out the upcoming conventions at Mass Mutual Center in Springfield:
http://www.massmutualcenter.com
That's right, zero conventions coming to Springfield. Z-E-R-O.
Now let's check the conventions coming to Boston:
http://www.mccahome.com/events.html
Gee 19 pages of conventions booked through 2027 at the Hynes and BCEC convention centers.
'nuff said.
Harry Tembenis
Worcester, MA
Bill they are going:
1. make a cash offer for real short money,
2. Practiacally mothball the place,
3 Take all the "neighborhood NEW business" to their store b/c their store has just increased capacity by what 20%??
4. Just sit on 20 or 25 or $30M worth of real estate until Logan and Handscome are busting at the seams.
How about a letter writing campaign to every private airport owner and /or operator WORLDWIDE and let them know what a great aseet we have for sale.
They show up at Cityhall unsolicited with a huge check in their hands and Mr Nemeths is forced to write it up in T&G (and look foolish for his past editorializing). Otherwise Mr Fletcher will get
the scoop.
Anonymous you & I have similar thoughts on this will play out.
Massport (and MCCA) are gov't monoploies who do not know how to compete and we want to bring Massport here. ORH is clearly a hard and difficult sell.
I'll bet a quick look at maspport's marketing talent will reveal a long list of otherwise unemployable hacks
Hey !!! Who are you callin' Anonymous ?!?!?!??!?!?
;-)
Harry Tembenis
Worcester, MA
Jahn:
Lets get the order straight.. First I want to start an RFP on July 1st, 2004. The very day the current airport agreement was renewed--AIRPORT PRIVATIZATION.
That went nowhere. I even submitted a letter to the Airport Commission last February (check the minutes), since Chairman Nemeth told me that was the only way to make things happen. Rememnber the "proper channels"?? That got dismmissed as quickly as it was reviewed.
Since that time the current concensus (IMG) was to simply extend the current agreement. Exasperated I said we might as well outright sell or long-term lease ORH to MassPort and continuing the current agreement that has not worked for 8 years was stupid!!
I agree with all your comments about what MassPort, but it is better then the current set-up. Never mind a letter writing campaign, we should be putting together an RFP for the entire airport with a front page story in the Wall Street Journal..
Let me say this again.. Selling or long-term leasing ORH to MassPort is not my number 1 choice. It is, however, better then the current condition...
My number 1 choice would be to put together an RFP for the entire airport, front page story in the WSJ and every major media outlet and pick the best offer.
Sorry Harry, your post said "anoymous said"......I forgot it was signed by you at teh bottom.
Bill, there's got to more to this "Massport only " mentality than meets the eye. Politics or politicains somehow have us constrained to this motis operandi (MO) "Massport Only", esp given the fact that Obrien claims to like like private sector initiatives.
Keep in mind that "MO" probabaly keeps all the current players in place.
Maybe we could lessen our disagreement with MO if we had some new talents coming on board??? I just dont see it ahppening
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