After almost $600,000 in subsidies, AAI pulls out of DAB

[B727Driver]

Until true capitalism exists in the airline business, taxpayers and labor will be share the burden while mgmt laughs all the way to the bank, ex. Tilton, Carty, the list goes on.

 

[FIREMAN]

Explain to me again why $600,000 of my tax money is being used to fund and promote "cheap" air travel in a so-called deregulated market?

I thought the money came from the Chamber of Commerce?

 

[RIDETHELIGHTING]

Until true capitalism exists in the airline business, taxpayers and labor will be share the burden while mgmt laughs all the way to the bank, ex. Tilton, Carty, the list goes on.

UsAir should have been gone a long time go.

 

[Britpilot]

Explain to me again why $600,000 of my tax money is being used to fund and promote "cheap" air travel in a so-called deregulated market?

That is not your tax money. The cash came from the airport authority. $395,000 was in landing fee waivers, no cash there just loss of revenue. $200,00 was for "marketing support" Maybe some cash there
It is common for smaller cities to assist airlines with funding to obtain air services.
An example of your tax money being used would be the Essential Air Services programs in effect around the country.

 

[Ace McCoy]

From an interview with the Midwest COO:

Q. What about new routes?
A. It is probably premature, and we wouldn't mention those in advance of a public announcement. We are certainly looking at a lot of opportunities but keep in mind that fuel is hovering around $100 a barrel, and with fuel at $100 a barrel, markets that once made sense no longer make sense.

So it looks like Airtran is not the only one re-evaluating routes.

Or can Midwest only make smart market decisions?

 

[maxblast72]

I know. That's why I said "so-called deregulated."


It's only a free market until that market tries to correct itself. Then our tax money is rushed in to prop up the weaker company. I love it!

Daytona Beach is not giving Airtran a break on some fees because Airtran is a weaker company, Daytona Beach is giving Airtran a break so the consumers in Daytona Beach market can enjoy lower ticket prices which stimulates traffic in and out of Daytona beach.

Daytona Beach chamber of commerce can see what has happened to ticket prices in Knoxville, TN and Greensboro, NC after Airtran has left and does not want that to happen in Daytona Beach if possible.

 

[CitationLover]

Daytona Beach is not giving Airtran a break on some fees because Airtran is a weaker company, Daytona Beach is giving Airtran a break so the consumers in Daytona Beach market can enjoy lower ticket prices which stimulates traffic in and out of Daytona beach.

Daytona Beach chamber of commerce can see what has happened to ticket prices in Knoxville, TN and Greensboro, NC after Airtran has left and does not want that to happen in Daytona Beach if possible.

so the raw materials prices (oil) keep going up, but you want LOWER ticket prices while negotiating?

 

[maxblast72]

so the raw materials prices (oil) keep going up, but you want LOWER ticket prices while negotiating?

I never said that we need to lower ticket prices. These cities just realize that Airtran prices will be lower than legacy prices any day of the week. Airtran can make money at lower ticket prices due to lower overall cost structure and a simpler business model (no RJ's).

That is not to say that ticket prices won't be rising significantly for LCCs and legacies soon due to fuel cost (as they should), but just that our prices would always be lower than legacies overall.

 

[Ty Webb]

Baby needs a new pair of shoes!

Let's call it what it really is . . . . AirTran saving some money where they can, so they will have more to spend at the negotiating table. .

 

[ultrarunner]

Subsidies in an effort to lower ticket prices in order to stimulate traffic are only going to go so far...the airline STILL has to make money and the seats STILL have to be filled. You can lower that ticket price all you want, but that is just not going to force folks to all of a sudden have a NEED to fly.