I have obtained the numbers for the airport between July 1, 2005 and December 31, 2005:
Revenues
Airfield 54,225
Airfield Support 118,710
Terminal Building 113,382
Misc 72,494
Total 358,811
Expenditures
Salaries 382,510
Ordinary Maintenance 319,260
Fringe 181,974
Total 883,744
Operating Loss
Not Counting Debt Service 524,933
Since we are in year 2 of the 3 year operating agreement, MassPort will pay 85% or $446,193 leaving the City of Worcester a balance of 78,740. Keep in mind, however, that the debt service is entirely ours and it was 324,517:
15% of operating deficit for 6 months w/o debt service 78,740
100% of debt service for 6 months 324,517
Total Cost of ORH for 6 months 403,257
To the City of Worcester
During these 6 months Allegiant only starting operating at the very end on December 22nd, lets hope the numbers look better the last 6 months of fiscal 2006.
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6 months ago
5 comments:
I actually expected the numbers to be alot worse than that. That's actually somewhat reassuring. Hopefully, with the increased business, the numbers will drop even more.
Dave H.
Dave:
Actually it was more then I expected--right now it cost the City of Worcester 67,209 per month from July to December of last year to operate the airport. I was not aware that the debt service was 100% ours (not subsidized by MassPort)until a couple weeks ago.
Keep in mind we have MassPort paying 85% of the operating deficit less debt service (446,193). Starting July 1st (2 months from now) it drops to 68%.
Finally July 1st, 2007, (14 months from now) we are on are own.
Bill,
Hopefully it doesn't get to being on our own. If I understood correctly, did Allegiant sign an agreement with ORH for 5 years of service? If so, I can't see why Massport wouldn't extend or take over ORH. Especially with business going well. I'm sure they will start looking to expand thier flights/destinations within the year. If Allegiant is so successful here, I can't see why other airlines wouldn't take an interest in Worcester and I can't see why Massport wouldn't want to hang on if there is a brighter horizon
Dave
Dave H:
I agree 100% with your premise but it the bottom line is what counts. Lets see what the numbers are the 2nd half of fiscal 2006 with Allegiant flights flying in and out of ORH..
Bill
Under the agreement, Allegiant can pull out of the city, but it would have to re-imburse us for some lost revenues.
www.WorcesterAirport.blogspot.com
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