How Massport Dodges a Bullet with Direct Air Replacement
Wednesday, April 18, 2012
Chicago Rockford International Airport signed an incentive deal with Vision Airlines to fly passengers to Florida when Direct Air stopped service. The deal will cost that airport $350,000.
Mike Dunn, Chicago Rockford Airport director of economic development and government relations told GoLocalWorcester, "Under the negotiated contract, the maximum amount the airport was liable under the revenue guarantee with Vision Airlines was $770,000. Right now we are forecasting that the airport payout will be $350,000 based on estimated program costs and associated revenues. The final figures won’t be available until after flights end on April 30."
Direct Air filed for bankruptcy last week and abruptly grounded its planes several weeks back leaving thousands of passengers around the country stranded.
Massport doesn't guarantee full planes
Richard Walsh, spokesperson for Worcester Airport said Massport did talk with Vision Airlines about taking over Direct Air’s flights, but the terms were not acceptable. “We had conversations with Vision Air and like any business relationship, the business terms need to be positive. We are not in the business of making guarantees, which is what you see with Rockford. We operate three airports and that is not a practice that we engage in.”
The terms that Rockford agreed to and that had also been proposed to Massport, required that the airport guarantee a certain number of seats on the plane be filled or the airport had to pay for the empty seats. Walsh said Massport offers a variety of incentives to airlines, but they don’t guarantee full flights. “We have an incentive program to build the market. We waved landing fees and terminal fees for Direct Air. And as each new destination opened, we partnered with the airline to do marketing.”
Dunn defended the money the airport had to spend to make their customers happy. Dunn said, "The Chicago Rockford International Airport prides itself on providing a hassle-free experience so when we learned that 3,750 of our passengers were left stranded by Direct Air, we had to take action. Knowing the airport would incur financial costs for finding an alternative carrier, it was agreed to by the airport board that this was the right thing to do for our stranded customers. In the end, we gained a lot of new fans and reinforced the message that RFD goes above and beyond for its passengers. By fulfilling Direct Air’s flights, we also demonstrated that RFD to Ft. Myers/Punta Gorda is an extremely viable route. We booked more than 2,000 passengers in just 12 days of the Vision Airlines tickets going on sale and bookings continued to come in strong. This is information is important as it will give RFD opportunities to work with airlines to provide future service for this route."
Councilor Germain's response
City Councilor Mike Germain told GoLocalWorcester, “My order was intended to create a dialogue and see whether it would be viable for the city to work with Vision. I saw that Vision was doing it for other cities. It seemed like a natural fit.”
Once learning about the $350,000 price tag, Councilor Germain is happy Massport didn’t go through with the deal. “I probably would have been better off not using a name. I was just trying to create a dialogue. I don’t claim to be an aviation expert.”
Paying to bring back air service
City Councilor Joseph O’Brien said if Massport needs to be saddled with some financial burden in order to bring commercial air service back to Worcester, then that’s what Massport will have to do.
Councilor O’Brien said, “Clearly there was a demand for what Direct Air was providing and people felt it had value. And if there’s any way we can get an opportunity to replace that service, Massport should do everything possible. The idea that Massport may need to provide in additional subsidy is not an unreasonable request to ensure additional services out of Worcester.”
City Councilor George Russell agrees that Massport needs to come up with a solution. “I think it is a viable airport, considering 80 percent of flights were full, which shows it was a viable airport. Direct Air’s problems had nothing to do with Worcester.”
City Councilor Kathleen Toomey trusts Massport is doing what is best for Worcester. “I think Massport is working hard to find an alternate to Direct Air.”
Mayor Joseph Petty said The Public Service and Transportation sub-committee hearing last week had officials from Massport in attendance. Mayor Petty said Massport at that time reported they have had multiple meetings with both Allegiant Air and Spirit Airlines.
Mayor Petty said, “I have encouraged Massport to continue talking with potential airlines and I am hopeful for a resolution to accommodate leisure air travelers in the near future. Worcester Regional Airport has demonstrated through bookings the viability of the airport and leisure air travel service in Worcester County.”
Related Articles
- Breaking: Direct Air Cancels Flights til May
- Direct Air is a Nightmare for Travelers
- Direct Air’s Parent Co. Files for Bankruptcy - Refund Information
- MassPort “Wastes” $10k on Direct Air PR Campaign
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