In the past two weeks, we lost Skybus, ATA, Aloha and PanAm. First we all know how tough it is for a start-up airline to succeed. Second, the cost of fuel had to be the knock-out punch for these airlines. In the case of Skybus, I never liked their idea that all flights had to go through Columbus and some of the lay-overs were ridiculous. They should have modeled their flight plan, like Allegiant, with direct flights to leisure destinations.
Some may say that it was a good idea that ORH did not have Skybus. I completely disagree. Even now with the departure of Skybus from Westover, do you think Skybus overall hurt or helped their airport? It helped put them on the map as a viable option and sent a signal to other airlines that you can succeed at Westover!
People will not blame the airport, but will be hoping for a replacement. I will bet you right now that the Airport Director is on the phone with Allegiant, Myrtle Beach Direct and Southern Skyways. They have a story to tell and they will have a carrier back within six months. Look no further then Rockford. Once they lost United last month, they were able to replace them immediately with Southern Skyways. Before that it was Hooters that went out of business and was replaced.
Airports like ORH, Westover and Portsmouth, which have little or no commercial service, need to take chances on start-ups. A legacy carrier is not going to come knocking on the door. Your hope is that you are able to re-establish yourself and get other carriers to take note. What I am trying to say is that a carrier going out of business does not hurt an airport as much as an airline, like Allegiant, deciding to leave an airport.
Lastly, how much did it truly cost Westover. Most likely Skybus received free rent and anything else you can think about. What is the true cost of an empty airport to offer free rent and other services? In other words there were few out-of-pocket expenses to the airport. Even if Skybus wanted some advertising monies, the airport may have Small Community Air Service grant monies from the DOT. (ORH has a balance of $300,000 that we need to spend by September.)
Bottom line is that airports like ORH, Westover and Portsmouth need to work with risky under-capitalized second tier airlines. It is not so much that the airline needs to be a success, but that the airport and the community supports the airline and sends a positive message to other airlines.
WRRB/Telegram District City Council Forum 10/18
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This forum is for all district council candidates; all candidates are here
today. Format: 14 total questions, 4 questions across districts (for all
candida...
6 months ago
17 comments:
Official notification:
http://www.skybus.com
Harry Tembenis
Worcester, MA
What a bunch of "the sky is falling" bunk. How about some facts instead of "maybe they got everything for free" crap. Oh and check where I am posting from - I have NOTHING to do with skybus. Just a reader pissed off you didn't check any facts but shot from the hip. Out.
So it looks like Allegiant is one of the very few or the only LLC left in the game???
OUCH !!!!!!!!!!
If the outlook for comm. service at ORH was bleak in the past....after this last week....it is now non-existent if Allegiant is only LLC left?
We have no chips left to play ........last call was in September of 2006......and the lights have been turned on.......and the bouncer is making his way toward our table
We are done...unless our big brother from Massport can beat up the bouncer and the bartender.
Close it up! Forget the general aviation. I am tired of paying for the flyboys little hobby club up there.
I think you got called out Wild Will..I'm up for an arm wrestle competition
Dear anonymous:
I have in fact requested a copy of the agreement when Allegiant came to ORH. There was very little out of pocket monies given to them, although pretty much everything was given to them for free. There was also a commitment to spend a certain amount of monies on advertising. The City of Worcester could use there DOT monies for this. I assumed that the Skybus agreement with Westover was along the same lines.
Did not, however, see the actual agreement between Skybus and Westover? No do I plan to, I simply do not have the time to do it. In case you did not know this I am not a paid reporter. This is a blog, where I do in fact shoot from the hip.
Anonymous if you have anything specifically where I am wrong. Please tell me and I will readily admit it. In fact I welcome corrections so we can get the truth out.
Instead of beingpissed, enlighten us all and please provide facts to back it up.
Thanks
Bill
PS I would not have thought you had anything to do with Skybus.
"Sky is falling"? We have seen 4 airlines go out of business that past 2-3 weeks (Skybus, PanAM, ATA and Aloha).
That is not bunk and make ORH's job trying to get a commercial airline that much harder. Especially when you consider the only second tier carrier is Allegiant and they left ORH?
We need to downgrade to GA and save money per the IMG's recommendation. That is no bunk, how is that for facts?
Hi Bill. I bet we could sort out any differences over a good beer, huh? No offence meant to you (and I did NOT realize you were a "not paid" reporter... The part that I took exception to was "Most likely Skybus received free rent and anything else you can think about."
New companies get incentives to start almost anywhere. The pay-back is far too great for governments and large support-companies to wave that idea off. So if it looks like they would get free things, those who agree to allow reduced fees, etc, do get their pay in the end if the company can stay around long enough.
Hope some company can serve your airport to the level it deserves.
Keep blogging...regards...still Anon. ;-)
Anonymous:
I was not mad Skybus were getting free everything. My point was that ORH should have done the same. Airports like ORH, that waive rent, landing fees, etc to attract an airline is good business for the exact reasons you cite.
The other thing new airlines into markets like ORH want are advertising monies. ORH has $300,000 of untapped DOT (department of transportaion) to spend to attract an airline.
Ironically you and I are in agreement. Westover did the right thing by puttting together a better package to attract Skybus over ORH. Even though Skybus has failed, it was still the right thing to do by Westover.
Bill
So all these LCC's go belly up.......and their planes getted parked .................now logically .........what becomes of those planes........maybe some are deemed obsolete.........the others eventually find their way back into the hands of commercial carriers........
Would an astute observer of the commercial airlines business now be pro-actively looking to find out who buys these planes.....(probably on the cheap)............and in turn starts up new LCC's or adds to their existing fleet?.....if I am the boss at Worc Airport, I think I'd be looking to gov't authorites to see who is pulling paperwork to start a new airline(s) and/or I'd be in contact with whoever holds the paper on thses parked planes in attempt to find out who ends buying them.
THis is similar to foreclosed real estate.........someone will step in buy up the assetts (planes).........and put them back into use.........esp. the later newer planes?
Anon;
Bill supports the airport so much he is willing to house the plane captains and me the stewardess's on overnights:>)
http://www.cbs3springfield.com/news/local/17331744.html
Story Published: Apr 6, 2008 at 1:14 AM EDT
Story Updated: Apr 6, 2008 at 1:14 AM EDT
By CBS 3 Springfield News
Video Watch The Story
The closure of Skybus airlines is now threatening $15 million in state funding that was slated to be used for the Westover Airport expansion.
Chicopee Rep. Joe Wagner is behind the bill. He announced last month that the investment would be part of a larger mission to attract more passenger airlines to Westover.
Wagner has told airport officials he is sill committed to moving forward with the expansion project and he hopes to attract a new carrier to the area.
anonymous:
it will be hard for Westover to get 15 million for an airport with no commercial flights when the Commonwealth is hurting.
Still believe Westover will get someone to replace Skyus in the short term
Bill
Normally when an airline does go belly up, their assets are liquidated and sold off for reduced prices. Alot of more secure airlines will purchase the equipment to expand thier fleet. Start ups, cargo and private corps also purchase the equipment since it is sold for such a reduced cost. The marketing director and airport staff should be reaching out to airlines and ofering the airport as a hub. The fact that there is no business here can be a good selling point as an airline has a "blank canvass" here and can build to suit thier needs. Plus the fact that the airport has open parcels for development is a huge benefit since maintenance hangers or cargo hangers could be developed here.
Smitty
Jahn,
The global aircraft market peaked about 6 months ago; but its still fairly healthy.
Nonetheless, we'll see the Skybus Airbus get placed fairly easily; most likely not to US carriers.
The ATA 753 will likely go to CAL, the L1011's are as likely to get parked/parted out as moved to African/Mid-Asian carriers. Their 738s will also get placed easily, perhaps to AMR/DAL/CAL or overseas.
Aloha's 737-700s will get snatched up fast. Other tytpes are less certain.
I have heard rumblings that Westover has been in talks with American Eagle and Allegiant, but who knows...
Correct me if I am wrong some of these start-ups like Hooters and TransMeridian merely leased the planed from Pace.
Also believe that is what Southern Skyways and Myrtle Beach Direct are doing. On the other, Allegiant owns their planes.
I have a feeling the Aloha 732's are (unfortunately) going to end up in the desert - ATA's DC-10's (a lot of former NW birds) will probably either go to Fed Ex or also end up baking in the sun (maybe a few to South America / Africa as anon suggested?). 753's are such a niche airliner...maybe NW will pick them up since they already have them? The 738's and 737's should go quickly (especially if they're ETOPS rated), as should Skybus' A319's - also as anon suggested. I don't see the L1011's making it anywhere but the desert. They aren't used many places in the world already.
I doubt you'll see any new start-ups in the commercial airline biz soon.
Also, ATA didn't go down for the fuel costs so much as they went down because they lost their major military charter contract.
I'm also not saying that American Eagle isn't talking to CEF - but it seems kind of odd to establish service in Chicopee when Bradley is maybe 30 minutes away - with American Eagle service already. I will miss seeing Skybus at CEF though...even if it looked like the Village People painted them...
http://www.airplanephotozone.com/photos.php?id=12056
http://airplanephotozone.com/photos.php?id=12045
JPL
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