September 11, 2008

More Cities

Add Toledo and Allentown to the new cities services to Direct Air to Florida. This is a very aggressive expansion plan.....

4 comments:

Anonymous said...

How aggressive is it really? They're not committing their own resources, they're simply leasing someone else's resources.

You can be sure that they'll pull the plug in a heartbeat if they're losing money on a route.

The good part is that if they see a market that's more profitable than Worcester (like Allegiant did), they can simply start service to that market without abandoning Worcester.

Bill Randell said...

Steve:

That is the problem.... They most likely do not have much cash and at the slightest hiccup in any of these markets, they may have to pull the plug.

Bill

Anonymous said...

I see it like hiring a bunch of commission-only salespeople. It doesn't hurt you, and some may actually produce.

The more I think about it, the more I think they chose Worcester to use the $300K for marketing.

It's not costing Worcester anything to have them fly here. They're already paying the salaries. About the only added expense is the electricity to run the escalator in the terminal. Everything else is already begin spent.

If they don't spend the $300K, it's lost anyway.

BTW, Did you see Eric Waldron is leaving?

Bill Randell said...

Steve:

This whole deal was the 300K of grant monies that we expiring. Myself I would have rather seen, and who knows maybe we are talking to them, Cape Air coming in with their JetBlue code sharing arrangement.

Bill