It's great watching Massena's Essential Air Service process unfold. It's proof that competition and capitalism are wonderful things when it comes to the public getting the biggest bang for their buck.
When the new round of proposals came out this year, at least four air carriers considered submitting bids to provide air service to Massena, Ogdensburg and Watertown. In the end only three sent them in, and all three were different.
Because of the increased interest, the state of the airline industry and the economy, everybody sharpened their pencils and went to work. As things played out, the proposals got better.
First, Cape Air said it would add a connecting flight from Albany to Boston. The flying public would benefit from that.
Now, Gulf Stream Air says they are willing to take a regional approach to St. Lawrence County air service; fly directly from Massena to Boston for the people that want that connection and fly directly from Ogdensburg to Albany for the folks who want/need that. Cape Air has also offered to open local ticket offices to sweeten their pot.
So, now we find ourselves with multiple possibilities. In the end, the flying public and the taxpayers will benefit from this competition, and one airline will get a rather lucrative federal subsidy.
Then we can all look two years down the road when this contract is up and the competition starts again for the next round. We'll all be a little smarter, more experienced and in a position to demand a little bit more from everyone involved in the process.
Isn't competition wonderful??
As someone who lives in Albany NY and is from Massena I have had the ability to utilize the CapeAir services multiple times each year. Each time I have flown there have always been multiple people on each flight, and I know of many people who utilize the service as well, just to get to Albany and back, no where else.These services have been a huge benefit in times of loss, when it is necessary to get to Massena in a short period of time, or when one just wants to enjoy a long weekend with family instead of spending hours in a car.
ReplyDeleteTo allow a company to come in and do away with the service between Massena and Albany would be a huge mistake. Why do so many people think that everyone wants to go to Boston? If this happens there will most likely be a decrease in the number of people utilizing the flights, the prices will go up, and eventually Massena International Airport will be what it was just a few years ago, a ghost town. The Legislators of the Town of Massena need to stop thinking we are this huge metropolis striving to be something we are not and will never be, it is time to come to reality and look at what the people want!
Has every passenger boarding the flight from Massena to Albany been asked where their final destination is? I can say I probably have flown at least 25 times since the service became available, including recent months, and have not once been asked where my final destination was, always being Albany, so why do they think so many people will want to go to Boston?
It is decisions like these that keep young professionals like myself from returning to the community, decisions that never face reality and don't do what the people want. If they are seriously going to make a decision based on the possibility of reaching $1 million in federal funding due to larger planes, then I think it is time we have some new politicians on our board. Just like GM was never going to close, or St. Lawrence Center Mall was going to be a success, see where these people have gotten us?
Again, lets get back at reality and serve the people, make the people happy, and if the need arises for larger planes and more services then approach it but why fix something that is not broken?
Dear Anon. 1:39, what I hear in your argument is: The current service is great for you and your family so we shouldn't even consider changing it. You call yourself a "young professional", and as such I'm sure you're encouraged to take all factors into consideration when making business decisions. You look at the current situation, see what other options are avilable, set emotions and personal bias aisde and make the correct decisions. That's what we tried to do.
ReplyDeleteYou criticize the current state of your hometown, which may very well be justifiable. But I ask you: if Massena is a "ghost town" shouldn't we be looking to make some changes to make it better?
That's what we're hoping different air service will do.
As a young person living in the north country I can fully understand where the previous comment is coming from. If the entire comment above was read and understood I think much more would have been taken from it than the person's family benefiting from the current service and being a personal privilege.
ReplyDeleteIt is obvious, Mr. Gray, that the anon above feels that yes, changes should be made in preventing Massena from being more of a "ghost town" but not decisions that would be a detriment to the community, such as switching services that are a benefit to MANY people from the North Country.
and as usual with Massena politics lets ignore the main point of what was posted, have the many customers of Cape Air been asked each flight where their final destination was to decide if going with a company that only goes to Boston is right for the community? Ignoring the citizens is exactly why people stay away, I second Anon's comments and feel that a change is needed but not with the air service.
Let's use intelligence and look at the indisputable facts before us.
ReplyDeleteDid anybody actually run the numbers and consider the gamble and risk you have endorsed?
Let's do the math:
Gulfstream--19 seats 2x daily mon-fri and once a day on wkends = 12 flights a wk.
12 x 19 = 228 seats a wk
Only destination from Massena is Boston.
Cape Air--9 seat plane 3 x daily 7 days a wk
21 x 9 = 189 seats a wk.
Direct flights to Albany AND One stop through service to Boston.
228 minus 189 = A difference of only 39 seats per wk at a subsidy of almost a million dollars more per year, just for Massena. Plus the additional mandatory expenses required for larger planes.
At the same time you are giving up service from Massena to Albany, which your own survey showed was a more popular destination than Boston.
228 seats x 52 wks a year = 11,856 passengers if the planes fly at 100% capacity and never have a cancellation or weight issue. It simply isn't going to happen during a Massena winter. And figuring in Gulfstream's financial situation, almost impossible.
To reach your goal of 10,000 emplanements, you would have to maintain 84.3% capacity, with no cancellations at all. If you check you will find those figures were never met in the past, not even close. Big Sky was flying three flights a day through Massena with Boston as a destination along with a Delta Airlines code share. They weren't getting anywhere close to those numbers here.
I feel the glamour of the bigger plane and promises (from snake-oil salesmen who are desperate for the money the contract would bring to keep their company in business) got the better of you before you actually ran the numbers and looked deeply into the facts.
You seem to get defensive when you get notes of support for Cape Air.
I know you are going to say I have a vested interest in all this and accuse me, as you have others, of being "in the tank" for Cape Air. That isn't entirely true. I do use Cape Air's service to Albany, they are a solid, reliable company, and will still be here in two years if the DOT decision goes their way. Common sense says a $15 million gamble by the federal government (the cost of the proposal to all three northern cities) to have Gulfstream (a company with major financial problems) take over the North Country service, simply isn't worth the risk when you run the figures and look at the facts.
Hopefully the Department of Transportation will take the time to check the costs and risks versus your endorsement. Hopefully they will be able to show some fiscal restraint and I will be able to get to Albany without having the inconvenience of having to drive 35 miles south on fog shrouded roads along the St Lawrence River to get to Ogdensburg for my flights... and the DOT still has to approve that portion of the bill of goods you were sold.
Another thing, Cape Air was the only airline willing to take a chance on the north country two years ago when nobody else would fly in here. They have steadily increased business each month. They are growing the business here at Massena. If they are forced to pull up stakes and leave after bearing the expense of setting up a maintenance base in Albany and laying down roots in the North Country, they will probably never agree to come back. If your snake-oil salesmen are wrong and Gulfstream isn't able to provide the service their unfounded claims promise, Massena will be out in the cold without reliable air service. That is an option I think you seriously failed to consider.
Please stop thinking of Massena International Airport becoming a thriving major airport. We have a nice little airport that can grow and make money if properly maintained and promoted. We have a very nice terminal and Cape Air's service was growing.
I am hoping better thinking prevails in the Department of Transportation.
Wow! People get very defensive and rather emotional when discussing Cape Air! That's fine, but I had to put emotion aside for this decision. I think I'm right. We'll have to see what the DOT and the future have in store for us....
ReplyDeletePersonally I am terrified of the Cape Air planes, I can be in Albany in just over 3 hours and with my car it costs me about $50 round trip the drive isn't too bad- so why would I spend $200 to go some place that I can be in just a few short hours? Now to get to Boston where there are great sporting events, a really good airport, connections to mass transit, etc. I would pay $200 because it is 14 hours in my car round trip- I would personally prefer to see a flight from the NC to NYC that makes the most sense to me- flying to Albany seems silly to me. Besides I pretty much (when flying farther than Boston) travel to Syracuse or Ottawa and the last time I went to Florida I flew out of Plattsburgh because it was the cheapest and relatively convenient. I know I can't afford to tack an extra $200 on to my ticket anytime I want to fly some where and if you are one of the few people in the North Country that can, good for you!
ReplyDeleteThis may seem to be a dumb question, but does the town of Massena really need to be owners of an airport? Is the town making any money from it? If it were privatized how much tax income could the town be bringing in each year?
ReplyDeleteDo we need subsidized airline service?
It would be interesting to find out how much it cost the taxpayer per passenger during the last year for airplane service.
High speed internet web cam usage has replaced the need for many business people to be at meetings in person. How many of us really need to fly to anywhere? Or is it a matter of convenience that the taxpayer is paying for
It just seems to me that it is very, very expensive to make that trip in the long run.
Please look at the Gulfstream International 10Q report filed this past Monday with the SEC. This was only two days ago. It clearly states they need immediate funding of millions of dollars or they will be unable to continue operations. Please do not let another Big Sky happen to our air service.
ReplyDeletePLEASE! Check Gulfstream International Airlines' 10Q report filed this week with the Securities and Exchange Commission. It is available on line via google or yahoo. It clearly states usless Gulfstream obtains millions in funding immediately, they will be unable to continue operations. Big Sky II?
ReplyDeleteMr. Gray,
ReplyDeleteWhat changed from last week to this week?
From:
"Massena's Most Important Decision?? Probably."
To:
"...does the Town of Massena really need to be owners of an airport?"
Like taking your ball and going home?
Cape Air continues to grow ridership and loyal customers. Let's hope the DOT rules Cape Air can continue in Massena.
I guess this lesson teaches us "Bigger Isn't Always Better" when it comes to air service to Massena. Even with Gulfstream, we aren't going to reach the goal of 10,000 enplanements. So lets continue to grow with the stable air service that has us heading in the right direction. Hopefully the Town of Massena will meet regularly with the airline (no matter which one is chosen) and come up with a plan to promote Richards Field and come up with a sensible plan to grow the facility.
BRR
Joe, That's great you voted the way you think, but as an elected official, you are supposed to represent the people, not your own opinion, and it is clear you did not do that in this case.
ReplyDeleteBRR: look a little closer - I didn't post the comment about owning the airport, someone else did. No matter how much we work with Cape Air, a bunch of people will not fly the smaller plane with only one pilot, and many people can't make connections out of Albany. Wishful thinking and crossing our fingers won't get us to 10,000 enplanements, but bigger planes will.
ReplyDeleteAnd Anon. 7:15, what about the dozens of people who called and e-mailed the town hall saying they wanted Gulf Stream and Boston. Don't they count as much as you and the large handful who said they favored Cape Air?
I was elected to make decisions, not follow Family Feud poll results. I'll leave that to the big time, professional politicians in Albany and DC.
Mr. Gray,
ReplyDeleteI stand corrected and you have my appologies on that one.
BRR
I am concerned with yesterday's news stories. Do you have any comment on the Courier story about Gulfstream's finances? You are quoted in the story as saying they assured you their financial picture would be changing soon, but did they give you any evidence of how they were going to be able to turn it around?
ReplyDeleteAt first I was pleased to hear of the endorsement for Gulfstream, I think larger planes would be good for Massena. But at what risk?
Borrowing more money to throw at the problem, coming up with short-term financing will not end a long downward trend, only delay the inevitable. Did they give you specifics to make you believe their financial outlook would change?
Gulfstream's SEC filings earlier this week show they have been consistantly losing millions each year, at least since 2007. This isn't a recent downturn, but a consistant trend with no evidence of a turnaround. Their most recent filing with the SEC shows they lost another $1.6 million over the last three months.
I'm just wondering what they told you to assure you things were getting better. If it is something that can be backed up I can understand moving to larger planes to increase passenger counts. But is it worth the risk of losing all air service to the North Country for the second time in three years?
It's important to note that the reporter who called me for yesterday's story made no mention of the tatest SEC filing and I has not heard about it yet. So, my comments were made on five day old information.
ReplyDeleteI, too, am very concenred about the latest SEC filing. Yesterday I spoke with EAS officials about it and I expect to have a meeting with Gulf Stream in a day or two.
It obviously is not in anybody's best interest to have GS get the contract and then fail We need to do some more digging and ask a lot more questions.
Also, I will be surprised if EAS does not rebid this contract based on the differing desires between Ogdensburg, Massena and Watertown. It seems this thing is far from finished.
Mr. Gray-Sir, exactly what was your "five day old information', if i may be so bold? Did Gulf Stream jut tell you everything was going to be all right?! Is this what is passed these days as "due diligence"?! I thought the D.O.T. was the agency that solicited the bids and E.A.S. was the program name. Who ever it is, do you honestly think this will all get rebid due to the huge mess some irresponsible people made of it? I thought these were two-year programs and that Cape started in Aug-Sep 2008. And at this point, who else would be interested?! Is there anyone else besides the present carrier, one that is all but bankrupt, and one that has no planes/no plans and still hasn't shown up?! I'll fly on anything Cape's size on up so long as it is safe, reliable, convenient, reasonable on price. Cessation of service is not an option. The only reason "it seems this thing is far from finished" is because of corporate lying and bungling on local levels.
ReplyDeleteWhat exactly did we bungle??? Wanting service with a bigger plane? Or simply not doing what you wanted us to do?
ReplyDeleteThank you for answering my questions with questions. Service with a bigger plane is fine so long as it is reliable and the company flying it knows what it is doing, is on secure footing, etc. This seems not to be the case at all with G.S. I hear their stock didn't even trade yesterday. "..doing what you wanted us to do"=assure continued airline service into Massena..looks like the jury's out on that..i mean I'm sorry this seems to bother you but we have a good airport and it should keep going.
ReplyDeleteLet me ask a few more questions of you: Why won't our airport keep going with a different airline? Did someone say we had a bad airport? Should we just sit back and wait for the day when the taxpayers can no longer afford to lose almost a quarter-milliosn dollars a year on our airport operation?
ReplyDeleteThe airport needs more traffic and more business. We need a new hangar and more t-hangars. We need a longer runway. All these things don't just magically happen by everyone sitting back and doing nothing new and taking no chances.
You know, the way we've been doing things in Massena and the North Country for past 20-30 years.
What if we had taken that approach decades ago with our electricity? We'd still be under the hammer of National Grid and bitching about our power bills.
We have to get off our duffs, stop being satisfied with the status quo as the world passes us by waiting for a four-lane highhway, or a race track, or Toyota to come to town with 500 jobs.
Our old formulas are not working and we need to try something different. I think one way to fix our airport and get more passengers (and thereby more revenue) is a bigger plane.
That's my suggestion, what's yours??
I, sir, am all for more traffic/business/etc.-i agree with you on that. Where i part with you on your if-you-build-it-they-will-come optimism is that i would want a carrier that doesn't "live check-to-check"-exactly what Gulf Stream Airlines is doing. Higher landing fees, etc. mean nothing if the check bounces like a Superball. Our airport will keep going with another airline..so long as they pay their bills! We need more hangers,,we need a longer runway..for what?! Do you think somebody wants to come in here with jet equipment for airline service?! Please understand i agree with you on a number of points but i think we should keep our expectations grounded in what is actually happening around us. Blast at me for that if you want to as well..or anyone else..but keep in mind the blastee is also a voter that wants their town to do well just as much as you do. And i do thank you for providing this forum and for listening, even if we don't agree on everything.
ReplyDeleteDear Anon. 10:54 - First let me thank you for your thoughts and comments. My intent here is not to blast anyone...or be blasted. Look at your earlier comments and some of the others; they sure sound like blasting. I, obviously, returned some of that blasting in kind.
ReplyDeleteAnyway, the point is this: This is the kind of healthy, respectful debate we should be having on the airport and all sorts of issue before they become crises or are staring us unavoidably in the face.
I grew up in a family where strong, healthy debate was the norm - although the language was and still is not always so polite as things have been in this space.
But the point is that information, debate and discuss are what this blog is supposed to be about. That's why I publish all coments as long as they are not libelous, immature or completely vulgar/disrespectful. And so far I've only had one comment that fell into one of those categories, and I discussed that comment in a blog entry.
So again, I want to thank you and the other bloggers for their input. At the end of the day I hope we are all a little better educated and have learned a little about how others think and feel on any particular subject.
So, blast away! I can take it! And I hope you all with take my comments in the vein in which they are intended. Thanks again.
Mr.Gray,
ReplyDeleteI also agree a good debate is healthy.
In response to your entry at 10:00 p.m. on Friday. I understand wanting to grow the airport, but taking a chance with an airline that is close to bankruptcy is not going to grow the airport.
When we suggest sticking with the current carrier, we don't mean forever. Continuing to grow what we have will attract larger planes. Getting larger planes in here to have the company continue on it's slide to bankruptcy will have the opposite affect on your goals of growing the airport. If the second airline in three years goes under while servicing Massena, what incentive would another airline have for coming in? Sticking with the current airline for two years while they continue to grow business and adding the connecting flight to Boston might show a trend toward increased business and then a larger airline might want to come in.
We can't expect to have everything overnight. And reaching too far for the "golden ring" could make you fall off the horse.
Seriously, if the larger airline (by plane size only) was not desperate for the millions of dollars in government monies, do you think they would even be bidding to come in? They need the contract to stay in business in the short term. There is no gurarantee this experiment will work, in fact the odds of it failing are quite high.
On the 26th you said you were going to be meeting with Gulfstream officials. Were you able to have that meeting and did you learn anything new? Were they able to shed any light on their financial situation or tell you anything that might give you reason to believe their downward financial spiral wouldn't continue? Were they able to give you actual evidence? Or did they just tell you things would get better?
ReplyDeleteTHANK YOU DEPARTMENT OF TRANSPORTATION!!!
ReplyDeleteBR