airline guarantees

airline guarantees - This copy is for your personal...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
This copy is for your personal, noncommercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers here or use the "Reprints" tool that appears next to any article. Visit for samples and additional information. Order a reprint of this article now. August 18, 2009 Small Cities Pay to Keep Air Travel By ELIZABETH OLSON With airlines cutting back service in a weak economy, some cities that are too big to qualify for federal help but too small to keep the planes flying in have stepped up with ways to hang on: paying the airlines, either directly or indirectly. The cities, like Myrtle Beach, S.C., and Duluth, Minn., have tried various strategies to keep their lifeline to the outside world. Myrtle Beach, for example, has reduced landing fees, terminal rents and other fees. In addition, the city’s convention and visitors bureau plans to spend $8 million — in money raised from private businesses and in state tourism promotion money — on a marketing campaign to attract more visitors, particularly golfers from northern states, said Bradley Dean, president and chief executive of the area’s visitors bureau. Officials in Duluth are weighing whether to guarantee an airline that a certain percentage of seats will be filled. Once those targets are met, the city will profit. “Anymore, the airlines don’t want to take the risks,” said Brian Ryks, executive director of the Duluth Airport Authority. “But they want all the rewards.” While many of these cities have struggled for years to keep their airline service, the issue has become more acute in recent months. Airlines have been
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
cutting capacity sharply for much of the last year — first as their costs rose with skyrocketing oil prices and then as the economy slowed, reducing
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '10
  • Northwest Airlines, Delta Air Lines, Airport Authority, Essential Air Service, minimum revenue guarantee

{[ snackBarMessage ]}

Page1 / 4

airline guarantees - This copy is for your personal...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online