Looks like ASA will also be going to Lansing, MI starting in August.
http://www.lsj.com/apps/pbcs.dll/article?AID=/20050406/NEWS03/504060331/1004
Published April 6, 2005
Airport OKs $1M for flights to Atlanta
Capital City guarantees funding to gain routes
By Stefanie Murray
Lansing State Journal
Capital City Airport will soon add another southern city to its roster of nonstop flights: Atlanta.
The airport authority board Tuesday unanimously approved a $1 million revenue guarantee for Delta Air Lines to start two daily flights to Atlanta, to be paid by the airport only if Delta isn't profitable in the first year.
The 50-seat regional jet flights will start in August.
"It's equally important that the rest of world will have access to Lansing through Atlanta," airport board member Richard Baker said. "Atlanta ties us in with South America, it ties us in with Europe."
The board also approved giving Delta $100,000 for marketing, which it typically gives to airlines establishing new service.
Money for the revenue guarantee will come from tax millage dollars paid by Ing-ham County residents in the next two fiscal years.
Last month, the airport's consultants, Sabre Airlines Solutions, recommended the deal. But the consultants also said the airport likely will have to pay the full revenue guarantee, as first-year service is rarely profitable.
There are pros and cons to revenue guarantees, said Andrew Vasey, president of Aviation Capital Management in Indianapolis.
"Airport revenue guarantees are not new concepts and can be helpful to a community if it can support the new air service to the point where the guarantee can be dropped," he said.
Delta's break-even point is about $4,045 of revenue per flight, airport Executive Director Robert Selig said.
The Atlanta flights will open up dozens of connecting flights for travelers.
"I think this is going to help increase competition at Capital City Airport," said Victor Celentino, a board member and Ingham County commissioner.
In other business:
• The authority board approved the airport's $9.8 million 2005-06 budget.
• The board approved opening a $2 million line of credit to aid cash flow.
Contact Stefanie Murray at 377-1016 or
[email protected].
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