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Originally Posted by BrianTH
They have been using net revenues from operations and such to make debt payments that will soon be over. In fact, they already have a surplus which is accumulating as cash. They plan to put that into the modernization project.
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So the situation previously posed was that the airport would be awash in cash when the current debt gets paid off shortly. Without the modernization the cash surplus results in drastic reductions in the fees imposed on the airlines which also results in lowered revenues for the airport. Alternately, with the modernization that cash will once again be used to service the new debt. Its a moot point anyway as the modernization is going forward, and part of that $12.4 million from the casinos will be used for that debt - as it has been with the current debt.
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OK, but we could redirect the $12.4 million annually in state gambling funds, and then they could work out whatever deal they wanted with the airlines using only the airport's own revenues.
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Well no, they can't work out whatever deal they wanted with the airlines using airport revenue. That's why I linked the above document. There are federal guidelines in place that specify what financial incentives can and cannot be given to airlines, and under what circumstances. Since it is the airlines generating the revenue for the airport the FAA is very specific about how that revenue can be spent and they are very particular about that revenue being used for non-aviation purposes, in which they deem "destination marketing" to be. You might disagree with the policy but the fact remains it is federal policy and unlikely to change.
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Sure! You could very likely get a lot done for that amount of money.
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The problems I see with aerial gondola's are:
1/ Acrophobia (fear of heights). So right off the bat you are eliminating 7-8% of potential users who will never get on the thing.
2/ Thunderstorms (can't be used)
3/ High winds (can't be used)
The fact that the technology has been around for a long time now but has yet to be adopted in urban settings on a widespread level speaks for itself.
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Meanwhile, where exactly is the cost/benefit study of the $12.4 million annually for the airport? Or the Southern Beltway?
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Well you could look at the incentive on a per route basis. Condor Airlines received $500,000 to begin 2 years of service to FRA. They state the flight injects $300,000 in to the local economy with
each landing.
"Titus Johnson, Condor’s North American spokesman, estimated that every time one of his airline’s planes touches down in Pittsburgh it will inject at least $300,000 into the local economy."
http://www.post-gazette.com/business...s/201611130099
We got a bargain. There is a tremendous amount of information out there about what value international air service brings to a community.
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Indeed, your link is all about how to structure these programs to comply with the regulations. I see no reason to believe the airport could not, if necessary, follow that guidance.
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Well they are following that guidance but because that casino revenue allows them to do so. Some of the other incentives have come from the state's Department of Economic and Community Development. The common theme there is that the incentive money is coming from non airport revenue because what is being marketed with the incentive is the destination, not the airline in question.
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