For 5 years, we urged the City of Worcester on this blog to:
- Put the entire airport out to bid (RFP)
- Privatize the airport.
The RFP was never put out, although two insignificant parcels were that in the end received one bid, but was never sold. More importantly a private company like National Express, which leased Stewart Airport in Newburg, NY for 100 years, but sold it for a rather large profiit back to the Port Authority of NY after 10 years for a huge profit, showed there was a market for aiirports.
In the RFP was never put out, but make no mistake about it ORH has been privatized as MassPort has taken title to our municipally owned airport. How much did they pay for it? Jahn, I am not making this up. The price will be in equal installments and will be "fair". Have you ever heard of anyone selling anything for an unknow ""fair" price.Even when the "fair" price is determined any:
- expenditures
- subsidies
- operational costs
Provided to the city by the state will reduce the fair price.
Let me give you an example. Assume we determine the "fair" price to be 25 million and the expenditures/subsidies/operational costs provided by the state to be $20 million, the City of Worcester gets $5 million.
This begs the question of why didn't we seek a new owner, who would not have been able to reduce the purchase price by the expenditures/subsidies/operational costs provided to the City of Worcester? In other words, a bid by National Express of $20 million would be better, in this example, since the City of Worcester would have gotten the full $20 million.
Looking forward, what's done is done. Although I feel the City of Worcester has not gotten the best price for ORH, this is great for the actual operation. Now that MassPort has a true ownership interest in ORH, you will see ORH become a real airport.
Here are a few predictions in the short term (one year):
- Cape Air code sharing with JetBlue
- Shuttle flights to a major hub 3 or 4 times per day
In closing we could have found a better buyer, but lets just be happy we have someone who knows how to run an airport running ORH.
4 comments:
Like so many other developments in Worcester, the "news" seems a bit premature.
According to Daily Worcesteria, once this legislation passes into law, the sale doesn't actually get finalized until July 1, 2010, and actual ownership doesn't fully transfer to Massport until a year after that. That gives Worcester two more years of paying "our share", ie- another million or three...
It wouldn't surprise me if the city ends up not only paying two more years' worth of debt service, but even more to Massport for the privilege of giving the airport away to them. Nor would it surprise me if, by next year, the legislature decides to reverse their decision to take on the burden of this airport, simply because of worsening economic conditions.
With Massport taking over, you can expect general aviation to decline further.
There are pilots who simply refuse to use a Massport facility, due to the fact that they are treated like criminals, rather than customers.
BIll, I thought the same thing when i heard the radio this morning.
IMO, the legislation is a non starter for the reasons you have stated.
I am wondering if this Is Murrays hand in it. i.e. Get something in writing legislated that is really meaningless & useless. He did similarly with City Sq. 4+ years ago .........got something on paper and where are we now? This is what happens when those who cannot cut it in the private sector run for office.
I am not so sure Massport knows how to run an airport either.....better than Worc..ya for sure probabbly.but what kinda metric is that ??.............
Sorry to dash your hopes Bill, but Worc airport goes NOWHERE as far as commercail passenger air transport w/o an access road from 290 in Worc to airport hill. NOWHERE...
Keep in mind Massport is merely a gov't created monopoly that has a complete monoploy on air transport in greater boston area. I tend to doubt they really know how to compete when they have to.....and then who are they going to compete agianst....ya think they're going sacrifice Logan for Worc's benefit and Bradley and Manchester & Providnce have beat us to the punch. Anyone catch Cianci on Hannity last night? I just lost some respect for Hannity having that Felon on there. Maybe he told Hannity he'd have his arms singed with a cigarette butt if he couldnt get on Hannitys show :) and Hannitys knows that kinda threat is real :)
Also of note today from Beacon hill is the transportation so called overhaul bill...........just merge all the depts......and call it reform...WTH...!!!
Similar to Worcs airport........ i.e. no mention of money ........is the take over of health care by Washington...........there is no mention of money and where it's going to come from....specifaiclly trillions of dollars for the same mindset that delivers the mail to take over my heart surgery........god help me
I wonder what the real reason for Waldron's departure from ORH is. Supposedly, he was taking a 'better' position as Massport, but recently took another position at Bradley
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