March 02, 2008

Midway Airport For Sale Update

Great story in the Chicago Sun Times about the sale of Midway Airport, click here. Mayor Daley has issued an RFP (Request for Proposal) to operate Midway Airport due back by March 31st. For three years we have urged the the City of Worcester to do the same.

Must read.

15 comments:

Anonymous said...

As long as a provision provides the retention of current employees at similar jobs and pay, and caps are set to allow current businesses at the airport to operate without increasing rent or allow other competition on the field, I think it's a good idea

Anonymous said...

Great article, Bill ...

Harry Tembenis
Worcester, MA

Anonymous said...

quote from article:

"Well over 50 airports in Europe are privately run. Midway would be the nation's only privately run commercial airport"

While Chicago and other cities look to become either World Class cities or become urban environments that again bring back the educated, creative, young and I could go on...Worcester, Massachusetts looks to be the first in the nation to end homelessness (a noble idea) but an idea and effort that isn't solving the woes of the city...or making the edicated, creative, young and I could go on move back!

A great article Wild Will...nice to see other also look outside to see what other cities are doing to move forward..how do you find this stuff???

There must be something wrong with me..it is 5:37AM on Monday and I am looking at yer blog:>)

Anonymous said...

Bill;

why in your opinion did Allegient leave? I have never really read any comments on why...maybe the airport is not considered viable for commercial flight that many seek.

I would have assumed thT Allegient at some point may have indicated why to someone..perhaps shareholders?? Someone has to ask the question..have you ever sent the a note? How does one ask a big company why they have left a market and so quickly after moving in...were they able cause the put so little money in??

It seems to be a good company from the stuff you post and I read..seems strange that after so short a time that they would pull the plug going from what we were being told about the load..I flew it once to Sanford en route to New Smirna and was quite impressed..I remember getting off the plane and Andy S was getting ready to get on..

I miss the planes flying over my house..it really made me feel like I was living in a city and that this represented some real change for it and it reaffirmed that I was making some right moves for my self financially with my investments in the city

Bill Randell said...

Paulie:

Allegiant people are extremely smart and successful. They only left Worcester because they were not making money.

Although nobody from the City tried to find out the true reason, we on the blog found an article where their CEO commented how critical the cost and disposition of fuel is. We assume it was the price of fuel that drove Allegiant out of ORH especially since the month before they left the Airport Commmission vote to rescind the City tax on the sale of fuel at ORH.

Losing Allegiant was a huge and still is a huge loss for ORH.

Bill

Anonymous said...

Especially since they expanded their flight routes...

http://www.allegiantair.com/aaRouteMap.php

Harry Tembenis
Worcester, MA

Anonymous said...

Let us not forget that Mayor Murray at the time also told Allegiant not to let the door hit them in the +++ as they leave. Even called them back-stabbers, per the T&G.

The ex Mayor walks and talks the pro business agenda, but his actions are to the contrary. Witness his representation of a client in an age discrimnation suit against St. Gobain, which he lost. The story even made the Wall St Journal...........the paper questioning how a sitting Mayor could be using his private law practice to sue the last large remaining manufacturer in the city of which he was Mayor.

Next, I think next he's going to screw up this commutrerr rail service with his veiled threats to CSX, who is good enough to us to let us lease their tracks between Worc & Framingham, w/o which Worc. would have no cummuter rail service.

One should learn to be more appreciative of the hands that feed them.

To Anonymous, you're a classic example of what all that is wrong with the airport (and many city employees in general)..... i.e. your sense of entitlement to a job without regard to the taxpayers who are footing the bill. Why should any private entity that might want to take over the airport want to keep on the current employees at similar jobs & pay and allow current business es to operate up there w/o rent increases........ yet it's some how OK that your compensation continues to go up every year.

This entitlement mindset is whats wrong with far too many city employees. Try taking an average of 10 sick days per year with a private employer. You'd be kicked to the curb w/in 6 months.

Anonymous said...

is the cost of fuel less elsewhere? Was Worcester and the surrounding communities not suppporting the company...fuel is the cost of doing business..if they were doing business here and the fuel is the same cost here as elsewhere then I am confused..I did read on this blog somewhere that they used a bigger plane out of ORH or something to this effect

I specifically flew out of ORH in support..I could have gotten a flight to Daytona and driven to New Smirna (sp)..my buddy winters there (he is 75 years old)..I like to drive so having to drive a wee bit doesn't bother me when I travel..going to New Orleans next month for the Jazz Festival and I am flying into Gulfport, MS instead of directly into NO..I like the drive each year and have a few haunts I visit before getting into NO

Bill Randell said...

Paulie:

I have been told that the cost of fuel is not competitive at ORH. Others more qualified then me can answer this.

Also the City of Worcester was charging their own tax on the sale of fuel at ORH. I believe that they are still doing this. Again those more qualified then me can answer this.

Thanks


Bill

Anonymous said...

Bill,
There's this relatively new term in business called "fast follower". What it means is that you let someone else take a risk on something and then if it works jump in afterward.

In the old (not so PC) days it used to be called second place or in the event of a 2 person race, last place.

Maybe that's the strategy the City is employing. Although it's safer not to play if you're a politician, that way you can't lose. Only the taxpayers lose in that scenario.


Rich

Anonymous said...

Is that like Rosie Ruiz who jumped into the Boston Marathon at the 1/2 mark?

Or like Pepsi who is happy being #2

Was it Avis (or Hertz) car rental that used to tout their their #2 position in the car rental business.

Always good to see that Worcester is Numero Uno in low income housing. Think about it.......what's the biggest growth industry in Worcester.....yup....low income housing.....and the spin off???.........9 or 10 new grocery stores that are very WIC & EBT friendly

Anonymous said...

For a good explanation on fuel expense go to:

worcestermag.com/archives/2006/09-28-06/city_desk.html

Anonymous said...

The last line says it all:

"Doug Robinson, Swissport's Station Manager at ORH ..... is working with the city and the administration of City Manager Michael O'Brien in an attempt to repeal the city's 9-cent tax per gallon on air fuel. It was one of the "hidden" costs that reportedly angered Allegiant when they were in town."

Bill Randell said...

has the 9 cents per gallon tax by the city of WOrcester on the sale of gas at ORH been removed yet??

Anonymous said...

I cannot recall for sure.......but I thought I read on thsi blog that the tax was more like 5% and a gallon of jet fuel was in the $5.50 range.......and Allegiant needed about 2000 gallons to fly to Orlando Area......so that works out about $550 in tax on a load of fuel for Allegiant...or at if it is in fact $.09 per gallon.....$180 per fillup.

We need some input from one of the flyboys up there. Help us out here. Whats the bottom line on jet fuel tax?