April 09, 2008

Sun Country

Here is my take on the start-ups. In order to build market share. they need to come out with great prices. In Skybus, they took to the extreme and charged $10 for some flights. The hope is that they have very low over-head from the underlying airport, fill the planes and do not lose to much money too fast until they can build some customer loyalty. Bottom line these start-ups are under-capitalized.

The fuel prices, biggest expense for an airline, has made this business model almost impossible. Today's start-ups are simply losing money too fast, they do not have the cash to subsidize these losses and simply run out of time. Since ORH's only chance is a start-up that can not start-up with fuel prices this high, we have little to no chance of getting an airline in 2008.

The next airline I see in big trouble is Sun Country.

14 comments:

Anonymous said...

Cape Air would be perfect for ORH. Small feeder airline (jet blue) with some New England destinations. Oh and profitable. Who wouldn't want to fly to the Vineyard or Nantucket for the weekend... Get real and abandon this big jet dream.

Bill Randell said...

Anonymous:

We have mentioned this too many times on this blog. Lets not forget their codesharing agreement with JetBlue.

Right now Cape Cod feeds Boston from P-Town, Hyannis, Martha's Vineyard and Nantucket. We have $300,000 in DOT grant monies that one would think help convince Cape Air to come to ORH?


Bill

Anonymous said...

When the Worcester pols see all that money flowing into the plane's fuel tanks, they'll make another cash grab.

They simply can't help themselves, and all the airlines know it.

Heard a good one recently - an aircraft owner in Worcester wanted to vacuum his plane. His airport ID badge had been revoked (a monthly occurance) so he was told he would have to hire a police detail to watch him vacuuming his plane, because he is a security risk.

Anonymous said...

Does this mean Steve Van Zandt from the E Street Band & of Sopranos fame is going to parody the song "I ain't gonna play Sun City" to "I ain't gonna fly Sun Country" ?!?!?!?!?

Refrain from lobbying any tomatoes my way please...

Harry Tembenis
Worcester, MA

Anonymous said...

Just had breakfast out this morning. Picked up InCity Times.........my breakfast was ruined after reading the list of the citys top wage earners............forget the total compensation...........just look a the base pay........$74,000 for a "Police Officer" ranking, for example...........that's $36 an hour !!!!...........is police officer the lowest ranking or is there a lower one. e.g. Patrolman? These jobs were never meant to pay that kind of money for 40 hrs........and tehn of course on top of that there's

a. detail pay

b. Quinn Bill

c. Overtime

d. Court Alt (?)

e. Admin pay

f. longevity pay

g. stipend

h. Haz mat

i. retro pay


AND THE BENEFIT PACKAGE , TOO

and to think that I am sure as hell going to be looking at a property increase soon.........

anyone think the council should instruct the manager that would like all new contracts to have no pay increases until get out of bankruptcy

Anonymous said...

gUTLESS, SO ARE YOU SAYING THAT THE in house security at Worc Airport is inadequate to handle a security operation that is neccessitated by an (known?) individual who is merely w/o an I.D. badge?

I ask Worc Airport security, is this true?

This entire episode s/b broomed.

Anonymous said...

I have to voice my opinion regarding the police salaries. I think public safety (police, fire, EMS) should have good salaries. We pay people hundreds of thousands of dollars a year to sit behind a computer or play sports. Those in public safety have a more important job then that. They're expected to do things that most people will not do or are too scared to do. Then they are criticized by people who don't know the difference between thier a$$ and a whole in the ground, but will gladly hide behind a computer and bash them. I fully agree with drastically slashing welfare and section 8 to assist the economy. That's what needs to be targeted.



Dave S.

Anonymous said...

Dave S

as long as you agree with half of what we throw up here you are welcome..once you go ovah the 50% threshold tho we start coming out from behind the computers

Anonymous said...

I didnt bash anyone. The city can no longer afford these overly generous salraies and awesome benefits packages.

What skills does a police officer have such that he can land a job with comparable base pay in another position......esp in the private sector.............take a look at what college campus cops make vs. municipal cops.

FWIW, police are not even in the top 15 most dangerous occupations....in spite of the publicity to the contaray...a commercial fisherman has much, much more to be "scared" of than a police officer on the street..............never mind one that sits ""behind a computer" or desk all day.

Bill Randell said...

The true frustration here is that the City of Worcester is not coming up with any cost cutting ideas!!!!

For once it would be nice to see the City come up with some cost saving ideas:

downgrade to General Aviation
privatize entire airport
privatize the golf course
privatize the muni parking garages
edu-clean for janitorial service

Five ideas right there.

Anonymous said...

Another cost saving idea.......all municipal employees go into the state workmens comp system............just like the rest of us.....No more 100% tax freee IOD pay .......no more 72% tax free disabilty pensions........why are municipal employees entitled to a special disablity system......which IMO is too often abused.

Anonymous said...

just thinking--
one way to reduce costs for the city is not to bother painting pedestrian crosswalks on the streets. no one uses them anyway.

Anonymous said...

Painting crosswalks on crumbling steets is crazy.........dittos for sidewalks, too

Anonymous said...

If the person who had their id revoked unjustly, can't they appeal this to the airport commission or the FAA?