United Airlines Rules Out YNG Passenger Service
VIENNA, Ohio -- United Airlines says there is no solid business case for establishing daily passenger service at the Youngstown-Warren Regional Airport, and even it there were, “The local subsidy amount being cited (approximately $1.5 million) was far below what they would need to start and sustain the daily service being discussed,” Dan Dickten, airport aviation director, announced Tuesday morning.
Dickten released a three-page letter, dated May 6, which was sent to the board of directors of the Western Reserve Port Authority, operator of the airport.
He noted that United Airlines reported a $489 million net loss for the first quarter. “Additionally, three of United’s most recent startup services are failing and the crew shortage issues suffered by all airlines is causing scheduling conflicts,” he explained.
Dickten led the charge in seeking community and business support for United Airlines’ need for a $1.75 million revenue guarantee so it would not lose money during the startup period for service to Chicago O'Hare International Airport. About $1.5 million was allocated through a federal grant and matching funds from the port authority.
A public survey of potential demand was conducted and Dickten and “the YNG team” set about raising an additional $250,000. Last month the survey results were sent to United and the pledge campaign began.
Since then, according to Dickten’s summary of the events, United executives informed staff members for U.S. Reps. Tim Ryan, D-13, and Bill Johnson, R-6, that the revenue guarantee the airline would need “was four times as much as we had informed United we could raise.” And even if that amount were raised -- $7 million – it would have to be pledged every year that United provided daily service to Chicago O’Hare.
Stated Dickten in his report, “Yesterday, May 5, United Airlines’ senior manager of network planning, Martin Kammerman, contacted our air service development consultant, Tom Reich, and myself with the following message:
‘Over the course of the last three months, we have received particularly strong and overwhelming support on your behalf from the congressional delegation in the surrounding area along with state and local elected officials. We want you to know that these leaders are strong and effective advocates for YNG. Unfortunately, at this time, we have concluded that there is not a solid business case for establishing service at YNG. As with all communities, we will continue to analyze and maintain the possibility for future service if demand for air travel makes a solid business case for annual profits and network benefits. As you know, we frequently meet with communities around the country to discuss potential air service and are always exploring possible new routes; YNG is no exception.’ ”
Dickten told port authority board members that he and YNG advocates will continue to seek passenger service and pledges for a revenue guarantee, including an opportunity offered by ADI, a Cleveland regional carrier, for a Youngstown to Chicago-O'Hare route.
CLICK HERE to download a PDF of Dickten’s letter to WRPA board members.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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