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Horizon Air to fly LAX to Mammoth, CA

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Jezus H Christ. The town/resort was trying to get Horizon to do this five years ago...when I was flying freight to MMH in 2003 the airport manager told me the town/resort were willing to guarantee 50% of the tickets on a flight-by-flight basis and Horizon turned them down because they didn't have enough planes. Five years of lost revenue later, QX gets around to flying to MMH. Error Group management never ceases to amaze.

Not only that but Air Group management is now deciding to do this when there are record fuel costs and a down economy. Why didn't they do this when when times were good? Oh yeah, they must have been waiting for someone else to do it first.
 
Not only that but Air Group management is now deciding to do this when there are record fuel costs and a down economy. Why didn't they do this when when times were good?

Because they got a revenue guarantee. Pretty simple.
 
Because they got a revenue guarantee. Pretty simple.

Like I said, Mammoth Mountain & the town of Mammoth Lakes were willing to do that in 2002/2003 (and from what I heard, Interwest tried to get them again when they bought the resort a year or two later). At the time, Horizon was running short on Q400s and said they couldn't spare the airplanes. Of course, that was partially because they'd sent a bunch of CRJs to Denver to get the JetExpress flying up and running. Now they have the Q400s to do MMH because, well, they have plenty of CRJs to cover the PDX-SEA and SEA-GEG runs (uber-efficiently, might I add).
 
The other problem with Mammoth was there really wasn't a sufficient terminal apparently and in the next couple of months the airport will close to re-do the runway (apparently take a large hump out of it) and build an adequate terminal. They must not have had the money to do all that back then as well.

I guess we know now where some of the aircraft time is coming from too (YKA).
 
Because they got a revenue guarantee. Pretty simple.

You could get a revenue guarantee during a good economy plus get additional revenue on top of that with excess customers above the guarantee. It still makes no sense.
 
You could get a revenue guarantee during a good economy plus get additional revenue on top of that with excess customers above the guarantee. It still makes no sense.

I don't think thats how it works. Revenue guarantees reduce risk by, well, guaranteeing revenue. They do not subsidize already profitable routes. In good times if you can find good and profitable markets to utilize your equipment in without the hassle of dealing with local politics, marginal markets (those that need these subsidies to attract service), and opening new bases (that may close when subsidies run out), then why bother dealing with it? In bad times when you find your airline cutting back old markets due to lack of revenue and you have an excess of aircraft, then why not go for the sure thing? It might not be as profitable as the other city paris were in the good times, but its still better than putting the plane on a money losing route or parking it (while paying for the lease).
 

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