Quote:
Originally Posted by Authentic_City
Seems to be a dangerous game -- paying to subsidize airlines to entice them to the city. This has been discussed here (YWG) in the past - to try to get a direct flight to LAX to assist with the Film Industry. It's been rumored that we lost out on some productions because of lack of a direct flight. I'm not sure the economics made sense and no deal was struck. I'd love to see all the prairie cities with more direct flights to US hubs, but it seems like we're all stuck with the hub and spoke model for now. I am hoping the new Airbus A220 (former Bombarier C series) might open up new routes with its longer range and greater fuel efficiency. Delta has ordered a bunch. Time will tell.
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Direct flights by Delta or United to MSP, DEN and/or ORD (as we had before) would be a big help. The flights were well-sold. And fares out of Regina via YYC, YEG, YWG, YYZ and so on are really pretty expensive at the moment.
The quandary here is that adding daily flights to the US will drive fares down on the Canadian routes. The tax subsidy lets the airport reduce its landing fees to airlines, which will allow the airlines to make similar money to what they're earning now but at lower fares (and will allow the US airlines to possibly make similar money to what they're making flying their smaller aircraft from hubs to subsidized US airports - the US heavily subsidizes small airports, so currently, they can fly emptier airplanes out of, say, Gillette, Wyoming than out of Regina and make the same money).
Time will tell if this is enough, but it certainly won't hurt.