May 16, 2008

MassPort Increases Subsidy from 68% to 79%

Click here for story in the Telegram. Couple points:

  1. I believe the City budget was based on MassPort eventually cover 100% of the subsidy of the operating deficit retro-active. A vote like this makes it somwhat clear to me that 100% is not going to happen.
  2. a 9% increase in the subsidy saves 250,000. That means the operating deficit would need to be $2,777,778? City of Worcester share (21%) is 583,333 plus some 600,000 in debt service so our cost is approximately $1,200,000 per year or $100,000 per month.
  3. Tom Kinton talks about an extension at the end of the year , what happened to the long-term lease or sale? It looks like he wants to wants to wait on the Worcester Regional Mobility Study. Lets hope this comes out faster then the 20 year Master Plan that has been worked on for four years.
  4. Here is the best line "It may not be passenger service initially. In may be corporate and general aviation activity..."

Let me ask this why then are we keeping ORH open as a Part 139 Airport. Think is what it is called when an airport needs to have certain standards to accept commercial passengers. Why don't we downgrade to a General Aviation airport yesterday, as IMG even recommended, and start cutting the loses now?


Anonymous said...

I have to agree with you on this one Bill. It's my understanding from watching the city council meetings that you can downgrade from commercial service and not have the city pay back any grants.

You should be able to upgrade when/if the need arises.

As for the mobility study, I remember reading studies being done in the lates 80's and again in the 90's. I don't believe the roads/flow to the airport has changed that much. The study should take a month or less to complete.

Finally great question in the T&G asking "Should another study about the airport be done". Would be interesting to see the percentage of yes vs no answers tomorrow.

My two cents (after inflation)

Bill Randell said...


My understanding is that the grants are for an airport. If we stay open as an airport, Part 129 or General Aviation, the grants do not have to be paid.

After we lost Allegiant, what airline is going to try Worcester?

Based on the uncertainty of the mgmt operating under 6 month extensions would you bring your airline to ORH?

IMG recommended this if we did not get commercial service and Tom Kinton pretty much says no commerical service.

Jahn, I still do not want to close ORH but downgrade to GA, save money but talk to other possible suitors.

Anonymous said...

That's part 139.

Bill Randell said...

Thanks will change

Anonymous said...

Worc Regional Mobility Study..............this is just another charade.......

Since when does the city listen to or follow the advice of studies or recommendations made by hiired professionals? so why even bother

And when the study says that we need an east-west travel corridor constructed or we need an airport access road (both of which we already know)........what result??......

Only result is we'll again see the knobby kneed CC bow down to the altar of very limited city SPECAIL interests.

Shame on you folks for not seeing through this BS, for what it really is......another excuse/delaying tactic.

You folks s/b smarter & wiser than this!!!!!

9+ years of combined MASSport & city baloney/delaying tactics.....and no one can see through it??

closE it down if & when viable.........


Anonymous said...

To rub it in a little further...

Gee, that makes Allegiant having been profiled in Forbes, Business Week & the Wall Street Journal all within the last year!

Harry Tembenis
Worcester, MA

Anonymous said...

If anyone is up at 08:00am on Saturday, check out my interview on
830AM radio or via the following web link:

Harry Tembenis
Worcester, MA

Anonymous said...

Those that missed my interview can hear it here...

I was interviewed duringthe first 10 minutes of the hour long show.

Harry Tembenis
Worcester, MA

Recks Read said...

The people know, especially after this past weeks arrogant move for huge pay raise increases to serve city hall insiders,that the last thing Worcester needs is to waste more money on an airport access road or a "study". How about common sense, that's free? Here is the answer to a successful passenger airport in Worcester:
1. Anchor an airline that provides destination flights that actually go where people want to go (i.e. capital cities, entertainment meccas, etc.)
2. Keep prices low or at least competitive with Boston or Providence. (Even match prices or offer reduced parking to make up the difference, whatever). Try it as short term pilot program, pun intended, say for two years.
You can not miss with that formula. If it does, Worcester simply is not a market for such an airport, go private, and stop wasting time and tax payer money to serve special interest who want something that has no purpose or benefit for the average tax payer.

Anonymous said...

Interesting story on the airline industry:

Anonymous said...

A story in the 4/11/2008 Miami Herald said that a former offical from the defunct Eastern Airlines is planning on resurrecting the airline under it's former name. He hopes to be up and running by summer 2009. It's a year away, but maybe airport/Massport officials should reach out to this guy and start talks. Eastern is a recognized name, so it may be a hit. Maybe, they could talk him into a hub in Worcester.

Anonymous said...

Repeating myself once again:

Cost to city to maintain the status quo at airport.......$1.2M at a minmum annuallly

Cost to city to shutter the place and just service the debt....$600,000 annually.

What am I missing?

Bill Randell said...


WE need to figure out how much it would cost to cut back ORH to a GA airport. Putting aside the debt service, which we have no matter what could the revenues cover the costs to operate as a GA airport.

If not then maybe we should just close the place down.

Anonymous said...

Suggest it will still lose money as GA airport above & beyond the 600 K debt service costs..........and Massport may not want a GA jus tpaying off the debt at 600k per yr i sless costly than paying teh 600 and still incurring some employyes costs.......and proably realizing less in revenue when scaled back

Anonymous said...

LWM is a GA airport that is self-sustaining. It has a budget of about $500,000 paid for with monies generated at the airport. The cost of running the airport is paid for by general aviation. Before we consider closing ORH, someone should see if we can use LWM as a model for ORH. LWM doesn't cost the city of Lawrence a cent while contributing millions to the local economy. Why not in Worcester?

Anonymous said...

Anonymous said "Why not in Worcester?"

If you don't already know, go up to the airport and ask them. You'll have your answer.

Let us know what you find out.

As a private pilot... go to Stow for your GA needs. You'll be better off!!!