This is what I a have been hearing alot of from. Check out this letter to the editor in Punta Gorda.
And then this newspaper article in the Toledo Blade that talks about both JetAmerica and Direct Air, who is now cancelling Myrtle Beach flights out of Toledo.
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
12 comments:
You seem to hear a lot!! You will be the happiest guy in Worcester if Direct Air gets into a similar situation in Worcester. Interesting you published another leeter witout comment= like SEE LETTER BELOW. GREAT NEWS. HOPE IT CONTINUES! LET"S ALL ENCOURAGE OUR FRIENDS AND RELATIVE TO TRY DIRECT AIR BECAUSE I REALLY DO BELIEVE WORCESTER CAN MAKE IT!!!
Jim
Jim:
Initially I was getting e-mails about how great the service was from Direct Air.
All I have been getting is complaints about flight time changes. What do you want me to say??
I believe Worcester can be a great airport, but it seems to me that Direct Air service has been slipping the past month...
Bill
Why is it that this City if you question something, you are considered to be negative.
Jim, Direct Air first stopped service to Florida out of Toledo and now they have stopped service to Myrtle Beach. The letter to the editor in Florida, I did not make up and echoes what i have been hearing.
Lastly I do hear alot. Check the website stats (flyorh.com). Averages about 65 hits per day.
Bill
Bill:
Did the car rental issue at Punta Gorda,Fl ever get worked out? First there were no car rental facilities at the airport, but does Enterprise 'come pick you up' if you fly into there?
Harry T
Worcester,MA
See, no car rental facilities...
http://www.flypgd.com
Harry T
Worcester,MA
Jim
We need more people like Bill Randell and Harry T. We,the taxpayers, hear nothing from the airport at all.
Dave H.
Frankly, the low passenger count cancellations are simply part of their model. If a PAIR of flights are weak, they get clipped. Otherwise, they fly. Of course, they cannot say this upfront because people would get nervous, but that is the truth.
It is costing Direct Air around $8,000 per hour to fly these planes. At 2x weekly, the $300,000 subsidy wouldn't still exist if they didn't cancel weak pairs. However, it would help them if they flew to other less seasonal destinations as well.
Question?
If it is $8000 an/hour to operate... then @ 100 full load @$79 x 150 seats= $11,850.
I'm sure it takes more than an hour to fly to Florida.
Question is..how can they continue to make a profit even at 100% capacity each flight?
The fare is $79 to start. The fare spread is between $79 and $200 each way. Add in baggage fees (usually $10-20 per passenger), vacation packages and the like, and one can get to $162 or so per passenger very quickly.
$162x 150= $24,300.
That's definitely a better profit margin vs $8000 per hr operating cost
No question. However, the majors would try to smack around a few businessmen for $300 or $400 each way to make the numbers balance out. The way that Allegiant and Direct Air do it is to make the fare low enough that you choose to buy other things. If you are getting a $79 fare, you might pay for a bag or two, buy some snacks, and even buy some sort of package that is being offered. Of course, Allegiant has a much broader range of ancillary income than Direct Air, but the idea is the same.
Budget and Avis have the best rates at PGD and have been the most reliable of all 4 brands. The Avis-Budget Agency there is locally owned and operated.
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