Ty Webb
Hostage to Fortune
- Joined
- Dec 10, 2001
- Posts
- 6,524
Let me try to shed a little light on this form the other side of "C" concourse.
1) AirTran has negotiated guarantees from several communities, including ICT and PNS. GPT (mentioned in a previous string by some mistaken someone) hasn't been subsidized for several years).
Regardless, that agreement is normally sought after by the local business community, who realizes that they will pay much higher airfares if there is no low-cost competition . . . . so much higher, that they are willing to got through the painful process of hitting up the local business community (first) and, in some cases, the local government, for contributions to a fund.
That fund, BTW, is there to pay some start-up advertising costs, and then guarantees a certain level of ridership. Months that fall below that dollar amount are "evened out" from the fund. If memory serves me correctly, PNS was a paltry 2.5 million dollars a year, which was solicited from the local business community. Result? They went from 5 DAL flights per day to ATL to more that 8, and 0 Airtran flights to over 3-5 per day, depending on the season. In other words, the number of flights more than doubled, while the cost was cut in half . . . hmmmmn, seems like a smart decision was made by the PNS Chamber of Commerce.
2) Don't think that AirTran pilots are gloating over DAL and/or NWA filing bankruptcy. That's the worst thing that could happen to us.
Best of luck, guys . . . .
1) AirTran has negotiated guarantees from several communities, including ICT and PNS. GPT (mentioned in a previous string by some mistaken someone) hasn't been subsidized for several years).
Regardless, that agreement is normally sought after by the local business community, who realizes that they will pay much higher airfares if there is no low-cost competition . . . . so much higher, that they are willing to got through the painful process of hitting up the local business community (first) and, in some cases, the local government, for contributions to a fund.
That fund, BTW, is there to pay some start-up advertising costs, and then guarantees a certain level of ridership. Months that fall below that dollar amount are "evened out" from the fund. If memory serves me correctly, PNS was a paltry 2.5 million dollars a year, which was solicited from the local business community. Result? They went from 5 DAL flights per day to ATL to more that 8, and 0 Airtran flights to over 3-5 per day, depending on the season. In other words, the number of flights more than doubled, while the cost was cut in half . . . hmmmmn, seems like a smart decision was made by the PNS Chamber of Commerce.
2) Don't think that AirTran pilots are gloating over DAL and/or NWA filing bankruptcy. That's the worst thing that could happen to us.
Best of luck, guys . . . .