Full his full interview go to FlightGlobal.com. Here is his most interesting comment and might explain why Allegiant left ORH?
Comment #1 from Mr Gallagher
That new approach must also apply to fuel services. "Fuel is a pain in the ass," says Gallagher, but it represents 40% of Allegiant's expenses. "So I'm in the fuel business." Airports should not "outsource and forget" fuelling services. "A monopoly fueller is a serious competitive handicap. We literally have a number of cities we won't go into because of this. They are not just making a living off us they are making a killing off us, and we are just not going to do it."
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
7 comments:
If you go to airnav.com and go to aviation fuel and plug in a Worcester zip code, you'll see Worcester is not that expensive .
Boston and Bedford are more expensive.
"A monopoly fueller is a serious handicap. We literally have a number of cities we won't go into because of this." Sounds like ORH to me?
Keep in mind that the airport commission also voted in August, 2006, the month before Allegiant's last flight to rescinded the taxing of fuel at ORH "in an effort encourage more Commercial and General Aviation activity." This in the minutes of the August, 2006 minutes.
The combination of the Allegiant boss' comments and the August 2006 Airport Commission vote leads me to believe fuel was a key reason for Allegiant leaving ORH.
So, what's the solution?
I have no idea... Think it is, however, important to realize why Allegiant did not make money at ORH versus other cities that they fly out of.
How does, for example, Rockford charge for fuel? I have no idea..
If the airport Commission voted to rescind the tax, what happened?
I am guessing here that the commission vote i s merely like a resolution and it has no binding , legal authoority. Guessing agin, the Council and/or Manager prob. have to sign off on it. who know swhat would have happened b/c Allegiant (like other businesses) CANNOT WAIT eons while council plays their politics making a decision. ANyone ever see the Council vote to reduce a revenue stream? If so, it's an anomoly.
Also $200,000 coucil & school committe raises, if forgone, could have kept Allgegiant at ORH w/o affecting the fuel tax revenue stream.
Jahn:
You are right the vote last August was a recommendation by the Airport Commission to waive the taxation on the sale of fuel at ORH. It would then go to the City Council.
Has this been done? Not sure. Bottom line is that I feel a vote like this one month before Allegiant pulled out of ORH is a clear indication that fuel was a problem for Allegiant at ORH.
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