August 25, 2006

Allegiant Post-Mortem

Nobody wanted the average loads to be in the 90+ range more then me. If this was in fact the case, Allegiant would have added more flights, like they have in other cities. The addition of more flights would have then have helped prove our case to other airlines that ORH is the place to be.

The fact the 10,000 passenger flew out of ORH on the 98th flight on a plane the seats 130, the numbers from website http://www.transtats.bts.gov uncovered by Charley Farley and the assertions of Allegiant themselves clearly show the loads were not in the 85-9o range. It looks to be more in the 75% range. We can do the math ourselves when the 138th flight departs on September 3rd on a plane that seats 130 when we get the final counts. Why were the results not better???

I do not see how we can blame Allegiant, although I do wish they were on services such as Expedia, etc. Allegiant provided great service at an affordable price (unlike PanAm), while anyone that I know who flew Allegiant was quite satisfied with the experience. How can you blame MassPort, area fliers, the City Manager or the City Council? You can't.

The everyday management decisions (not the airport commissioners) made by those who run the airport everyday really need to be looked at:
  1. For two years, we have pointed out how awful the website is and it is still horrible.
  2. Two years ago, we received a $455,000 Small Community Air Service Grant from the FAA, how was this spent? Why was it not spent on travel agents who sold tickets through ORH, on on internet placement ads where people looking for flights to Orlando from our catchment area would be directed to ORH, or new web page that actually helped sell tickets? Instead most of the monies were spent on IMG (over $100,00) to help recruit other airlines, maybe we should have focused on the one airline that we had?? Does anyone know where IMG stands on any of these negotiations?
  3. Parking!! Although we have pointed out what a draw FREE PARKING would be and it was actually stipulated in the application that resulted in the $455,000 award, it was not offered. How much did we make by charging for parking? Can the mgmt company (LAZ Parking) be terminated not at no cost or do we have to buy them out?? This was another huge mistake in judgement. The marketing draw of FREE PARKING could have been huge!!

I truly believe if we had a website that actually helped sell tickets, the monies from the Small Community Air Service Grant were spent better (not just on IMG) and FREE PARKING had been offered, the results the past nine months would have been much better. Enough to have kept Allegiant at ORH through the peak winter months, helping build a loyal customer base into the future for years to come and great selling point to attract other airlines. The high prices of fuel may have forced Allegiant's hand, but the achilles here was the people who run the airport everyday did not make the right decisions to provide the load numbers that Allegiant needed to stay at ORH.

The truth is we are going to have a very hard time finding any airline to come to ORH with the departure of Allegiant and now all talks will be on attract business jets or developing the empty parcels of land. If we do attract these 30 million dollar corporate jets, where will they park? Seriously, do we have the hangar space for jets of this nature?

We have 310 days until the end of the current agreement with MassPort.

12 comments:

Anonymous said...

Why would you think the Airport Manager controls these issues on his/her own? To say that success or failure and everything in-between rests on one person is not how things work. He/she works for Massport and/or the city (or maybe both). Decisions and strategies are coming from a variety of sources. I am sure everyone who is associated with the airport wants it to succeed. When something works well everyone takes the credit. When times get tough, "find a "fall guy".

Joe Gargery said...

If it were up to me, I'd fire them all.

When did anything ever work well at ORH?

Bill Randell said...

Maybe herein lies the problem.. Who is responsible for the decisions??

Bill Randell said...

Just reread Jim's comments. Seriously one of the problems with our airport maybe we do not have one person who is in charge...

If the roads are not plowed, people point their finger at Bob Moylan.

If the parks are a mess, people point their finger at Rob Antonelli. Nobody blames the park commissioners.

Maybe that is the problem, this partnership with MassPort (in year 8) and nobody truly knows who is in charge.

Bill

Bill Randell said...

Dave:

You make some good points. Actually everyone on the blog lately has really made me think. Thanks.

There is no one magic piece missing true, but I do feel the airport itself has not done a very good job marketing the convenience of flying out of Worcester. You and I know how great it is but maybe if we had free parking and a better website, others would have come to ORH and Allegiant would still be here?? Speaking of magical answers, we will not find them in the New England Regional Air Study Plan or the Master Plan from Leigh Fisher either..

In the final analysis, I am both mad and disappointed. we had a great opportunity to show the airline industry with Allegiant that ORH is a place that can support an airline. We failed.

Don't kid yourself Allegiant pulling out of ORH has sent a very clear message to other airlines and we will have an extremely difficult time get another airline.
Time will tell.

Anonymous said...

I guess my only point on the Web site is the site is the same as others in the city. I don't think it is an airport issue. The city must have a policy on Web sites being the same. Could it be better? yup. But it is a city web site- all the same format. It's not that bad. The information a person coming to fly from there is there.

The Consultant is the city's consultant. I would doubt the airport makes those decisions alone. The City pays the $$ and if they are still using them it certainly is with the higher ups approval.

On your point on the corporate aircraft being located here and where are they going to park them. Aren't they doing a Master Plan? It has taken too long, but I seem to have read something about them doing bids for sites for that purpose. I am sure if they want more corporate planes they will either build hangars themselves if they have potential tenants or have someone build them .They must have land in the airport property somewhere.

Bill Randell said...

Jim:

I really do not think we should judge the content of the city airport website in relation to other city websites. We should compare it versus other airport websites.. Look at other airport websites and I will let you be the judge.

AS far as corporate jets coming to Worcester, hangars being built on City owned land, etc. These may all be great ideas, but they will take time to happen. I dare say years not months.

Right now we have 309 days until the end of the current agreement with MassPort, we have to make some pretty big decisions right now.

Bill

Anonymous said...

The success of any enterprise requires expertise in 3 diff areas.

1. Marketing

2. Operations

3. Finance


Let's forget the finance part for a minute as muncipalities dont set up finance depts for every facet of municipal operations and besides the bean counters are typically the least important of teh above three.

All of us should answer these questions?

OPERATIONS: Who is in charge of airport operations? Who is in charge of the factory floor and making sure the widgets are properly produced?

MARKETING: Who is in charge of marketing? Do we have a sales/force team and a marketing plan?

Bill Randell said...

Operations: I would have to guess this has to be Eric Waldron.

Marketing: At this point I truly have no idea who is in charge of marketing. I highly doubt we have any sales force either. Marketing plan--bet we have 10 different ones.

Anonymous said...

First of all, I think it's great that local people take active roles in making something happen. But the problem is, and this is especially true with the city, is that they really don't know what they are doing and don't understand the industry. This is why we hire airport managers. Unfortunatly the people running the airport have no idea of how to run an airport. I know this first hand as I have been making a living up there for 15 years. I know what is happening in aviation throughout New England. I have worked with alot people over the years who are now elswhere and we keep in touch. Bottom line is aviation is a VERY small world. There are alot of people at the airport who have made a living up there. One business has been there over 30 years. We have seen it time and time again. Airlines are not the answer. It could have worked back in the 80's to 90's but instead of giving what the airlines wanted, the city gave them a terminal. We had the money approved for a parallel taxiway and CAT 1 ILS. We went to each airline and asked them what they wanted. All of them said the same thing. So we built a terminal and raised everybodies rent through the roof. We had our chance and blew it. But yet we still made a living and kept the control tower from closing. I am talking about general avition and corporate aviation. I am involved first hand with this. Things are exploding everywhere around in these areas. But we are stuck on airlines. You have a repair shop that is an authorized service center for the largest single engine airplane manufacture in the country. No one knows that though. You have an avionics shop that has been there since the beginning of time. I think they actually know the Wright brothers. They have reputation that covers the east coast. You have a flight school that has been there forever. You have a charter company that has a Beech King Air and flies regularly. Many private planes that have been there sinces the 60's. What have they done right to stay and make a living? What do they see or hear? Boy, no one seams to ask us that. Airport and city don't care what we have to say. We know alot of opportunities that were missed out because they don't want to hear it. I know airlines first hand that want to come to ORH. These are real airlines not Allegiant types. For people who don't know Allegiant is not a real airline. But when they sit down with the city. They want a million dollars for this that and the other thing. But along comes a no name airline and city offers the world to them. Then when their free ride is up they bail. This is what this type of airline does. What gives?

Then comes the FBO. This guy is deliberatly scaring people away. It is well know throughout New England to stay away from Worcester. Fees are way to high. Swissport is the sole reason why that airport is not busy. All this talk about putting out RFP for sites to buid on. I have been waiting 10 years for it to come out. There are a few companies who are literally banging down the doors trying to build something. They have banging for years and all they get is "well we have put together an RFP and send it out." If you looked at the working conditions these businesses work out of you would frightened. You wouldn't let your dog spend the night in theses buildings. These are all city owned buildings with the exception of a couple. Our ramps where we park planes is horrible and pavement coming apart. It beats the hell out of the planes. But lets put wi-fi in the terminal. Lets not spend money on the people who are keeping this place open. How about mowing the grass more than once every few months.
How about putting the lights back up in the parking lot.
The airport looks like a dump.
Lets hire the guy who mows around the cross on airport dr. That's the best looking spot on the whole airport.

Now with Massport. They are not the answer. Yes they will take the money part off the cities hands. But they are the most unliked bunch of people in the industry. We hear it all the time. On a selfish note. If Massport takes over all business and planes you see up there know would gone. You may think not. But I know of 4 businesses at Hanscom that got the boot when Massport didn't want them anymore. So from someone with ties to the airport, Massport is the enemy. Yes it will busy with maybe airlines and corporate. But it will be at the cost hundreds of peoples jobs. Lets not forget that Massport is Boston based which equals a crooked, dirty business.

The bottom line is I don't go into a restaurant and tell the chef how to cook the food. Let the people who do this everyday sucessfully tell you what works. Unfortunatly it's not the people who run the airport.

Bill Randell said...

Anonymous:

Thanks for some great insight. Most people (including myself) look at the airport as a place, where commercial airlines can land... Over the past couple of years I have been told about some of the opportunities that you mentioned.

At the same time everyone who has told me about these opportunities, the horrible shape of the buildings owned by the City, the problems with the FBO also say they don't want to get involved? What I am trying to say is that I am all ears and am open to whatever ideas that you have.

You guys/gals who have a vested interest at ORH and know a hell of alot more then me need to educate people like me and stop being anonymous.

Thanks


Bill

Bill Randell said...

Anonymous:

Just reread your e-mail how are people like me suppose to know about some of the great things you mentioned?? Why don't you tell me more about some of the things you told me and I will put them on the blog.

Instead of telling us, the tax-payers who are helping subsidize a 2.3 million loss to keep the airport opem. that we do not know what we are doing--educate us. We are listening.

Thanks


Bill