Sunday, August 15, 2010

Massena's Most Important Decision?? Probably.

In less than a week, the Town of Massena has to decide which airline proposal to support for future service at the Massena International Airport. It is likely the most important decision the Town Board will make this year, if not for a few years to come.

Let me give you a little background. The commuter air service at our airport is made possible through a subsidy from the U.S. Department of Transportation. That means the federal government pays a company to provide what is called "Essential Air Service" to rural areas like Northern New York

Without these EAS subsidized contracts, Massena and dozens of airports around the country would be unable to attract the small airlines that provide these services because our routes are simply not profitable.

For the past three years Massena, Ogdensburg and Watertown have been very capably service Cape Air, which flies nine-passenger planes from Massena to Albany three times a day. Cape Air came to town and took over the service when our former EAS provider, Big Sky Airlines, went out of business and left us with no air service
Massena's current EAS contract with the Hyannis, MA-based Cape Air expires on Sept. 30. A couple of months ago, the USDOT asked for proposals from airlines who are interested in providing the service.
We're fortunate in that we have to three applicants for the new contract period: Cape Air, Florida-based Gulf Steam Airlines and Charter Air. We've been courted by Cape Air and Gulf Stream but have yet to hear from Charter Air.
Cape Air will continue in thrice-daily trips from Massena to Albany, according to its proposal. The company has since said they want to add an Albany-to-Boston connecting flight.
Gulf Stream is proposing Massena-to-Boston direct flights for under $50.
Last month, only one day after the DOT deadline for proposals to be submitted, the Massena Town Board voted 4-0-1 to support Cape Air, although we really hadn't had a chance to review the proposals or hear presentations from the three applicants.
In my opinion, that decision was made too soon and without proper research. That's why I abstained from the vote. I felt we simply did not have enough information to make an intelligent decision.
We have since reviewed the applications and heard a presentation from Gulf Stream at a special meeting two weeks ago.
The town board meets again this Wednesday, August 18, at 5:30 p.m. and we will hear a presentation from Cape Air this time. The deadline for the town to submit its opinion to DOT on any service provider is this Friday, August 20.
Will the board reconsider its support for Cape Air in light of the information presented by Gulf Stream or will Cape Air solidify its base of support among the majority of the board?
We'll have to wait and see. But if you have an opinion or prefer one proposal over another, you should plan on attending our meeting this week.
I think it is safe to say this is the most important decision the town board will make this year.
What do you think??

20 comments:

  1. Just another reason for a "CHANGE OF BOARD MEMBERS"!!!!!!

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  2. I would like a larger airplane to serve Massena any large hub will do..

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  3. We must keep Albany service!

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  4. I would like to see Cape Air stay in Massena with contiued flights to Albany. Albany is a great central location with lots to offer!

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  5. It took the flying public a long time to finally gain confidence in Cape air after the fiasco of Big Sky a couple of years ago. Cape Air is very reliable and the employees are very helpful and courteous. I see no advantage of having another airline service Massena. Gulf Stream has made may promises regarding service but, as we know, things may change when they come here. Do we really believe that they will be able to sustain a $50.00 airfare from here to Boston long-term? If Cape Air is offering flights to Boston as well as Albany wouldn't that be the better choice? Yes, Cape Air planes only seat 9 passengers but the company has always stated that if the passenger loads increased to near full consistently, they would offer a second plane. We have a good thing going now...I think we should be careful what we wish for....bigger isn't always better!!

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  6. Since the Gulfstream proposal does not include Albany and reduces the number of daily flights at a much higher subsidy, I feel we must stick with Cape Air and the connection to Albany, the state capital.

    Cape Air came in when no other airline would bid on the North Country airports and their service has been very reliable.

    Gulfstream is offering the same type aircraft that Big Sky flew and the company went belly-up because it couldn't make a profit. Do we want to risk that happening again?

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  7. All of the comments above show that some people are very loyal to Cape Air. I would guess that a few of them are Cape Air employees or relatives of employees.

    Isn't it interesting that all of the four comments were suubmitted within an hour of each other, and all after 7 a.m. when the Cape Air staff comes to work?

    Let's be honest, you can't blame the bigger plane for the Big Sky debacle because that same plane flew out of Massena for many years with other companies who didn't go bankrupt.

    I welcome all comments but raising the specter of no air service just because there are competing bids to Cape Air is disingenuous.

    Let the bids stand on their own merit and let's keep our arguments honest and forthright.

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  8. I am not an employee of Cape Air... however I am a satisfied customer of Cape Air. Speaking of disingenuous, last month at the town counsel meeting, it is reported you abstained from voting because you did not think recommendation was needed for DOT. Now in your blog, you are stating you abstained because you did not have information. That to me is disingenuous.

    Allie Palazzi
    Nashville, Tn.

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  9. I've always thought a recommendation was needed. I abstained because the application deadline was less than 24 hours before our meeting and there was no way I was ready to recommend anyone. It seems, in retrospect, that maybe I was right.

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  10. First of all I would like to note that I am not endorsing or speaking on
    behalf of either airline. I am speaking as a concerned citizen of Massena.

    With all due respect Mr. Gray, you were quoted in the Daily Courier on
    Thursday July 22 with a different reason why you abstained from the
    vote. It wasn't because you didnt have enough information, it was because
    you felt it was not necessary for the town to take a position, and it
    should be chosen by the DOT. Now you are changing your reasoning.

    Secondly, lets look at the FACTS:

    1. Cape Air is offering more frequent service, 21 per week versus 12 per
    week for Gulfstream.

    2. Gulfstream is asking for an annual subsidy nearly one million dollars
    more than Cape Air (Gulfstream-$2,518,485 vs. Cape Air $1,519,732.) That
    is one million dollars that we as taxpayers cant afford to spend.

    3. Cape Air will fly to Albany, and is also offering Boston. I agree
    Boston has more connections, and travelers will be able to continue onto
    Boston on Cape Air.

    4. Also noted in the paper, of the 60 responses to the BDC's survey, the
    majority chose Albany as their preferred destination.

    5. Cape Air has provided reliable and courteous service to it's passengers
    over the last two years. That's not to say Gulfstream wouldn't do the
    same, but we have expiereince with Cape Air, we know they are reliable.

    6. Why does Massena need a bigger airplane when the Cape Air flights are
    not full? Do we really need to fly more empty seats and pay one million
    dollars more for those empty seats?

    7. Financially it is easy to see the shape Gulfstream is in. Look up GIA
    in the stock market. Their shares have fallen from over 2.00 in September
    2009 to .58 today. Do we need another airline on the verge of bankruptcy?
    It seems like we have seen that before! With a little research we can
    learn alot about the two airline bidders.

    8. Gulfstream's airplanes have 10 more seats.

    Which airline makes sense to you?

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  11. I just checked out Gulfstream International Airlines on Wikipedia... ARE YOU KIDDING ME?

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  12. Have you checked the finacials of Gulfstream International Airlines? Their annual report says they are broke... their words.

    Patrick Shanahan

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  13. As a resident of the north country, and an occasional flyer I feel Gulf Steam Airlines is a poor choice for the North country. I found a few articles about there practices, and feel they are unsafe in the air (http://online.wsj.com/article/SB124293891324544689.html?mod=googlenews_wsj). I hope you read the link, if you would like I can point you to more similar articles about Gulf Stream Airlines. These are not a group of people I want to fly with, these are not people I want flying near my home. Though I an sure you have a difficult decision in determining what airline should service the North Country, I feel it should be apparent that Gulf Stream Airlines is not right for us.

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  14. I can't be responsible for how I was quoted. I NEVER said it should be left to the DOT. I'm not changing my reasoning. And it seems hard to believe based on your one-sided argument that you're not "in the tank" for one airline over the other.

    As far as your other facts, you need to ask people why they aren't flying Cape Air. When we had service with larger planes there was absolutely no problem maintining that service - for many years as I have said before.

    We've had over 9,000 seats filled in the past with larger aircraft and we are averaging just over 6,000 now.

    Why the difference? Shouldn't we all be asking that?

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  15. Mr Gray,

    I understand your wanting what is best for Massena. As a resident, I appreciate that.

    Bigger planes are cosmetically more attractive to people who may fly once a year on vacation.

    People who fly regularly on Cape Air, (the ones who represent the bulk of passengers using the airport) do not have a problem with the Cape Air planes. The smaller plane is actually more comfortable in my opinion. Have you ever been stuck in the middle seat of a larger plane with two large people on either side of you? I would prefer the smaller planes with individual seats. To be fair to Gulfstream, the 19 seat plane also has individual seats where you wouldn't be crushed by a large person sitting next to you, but other than the emotional feeling of "ewww, it's a little airplane," have you heard any complaints about Cape Air's service? I don't see a lot of comments here supporting the other proposal. I can also remember when people would shudder getting on the 19 seat plane because they were too small-- Now these are the larger airplane?

    In return, Mr Gray, you must be fair in this process yourself. Everybody that supports Cape Air isn't necessarily "in the tank" as you say.

    Lets be realistic here -- You say other airlines besides the one that went out of business were filling seats out of Massena in the past. If flying out of Massena was so successful, why aren't other airlines beating down the door to be able to fly out of Massena? Because all of them were losing money, even with the government subsidy.

    Yes, bigger airplanes are more appealing to the "once every year or two" traveler. But they are also much more expensive to operate. Should this be looked at as a "mine is bigger than yours" thing at the expense of the tax payers? Or should we be looking at which service will get us to Albany and/or Boston RELIABLY, SAFELY AND AFFORDABLY?

    The decision on which airline to endorse is totally a decision that has to be made by the town council. Hopefully, all avenues will be looked at. Is the airline you choose to endorse financially sound? What is their safety record? and What is their track record on reliability and customer satisfaction?


    As our past experiences with airlines must dictate, you must be fair and ask yourself which airline is more likely to be here as the term of this contract comes to a close? Mr. Gray, it is up to you and the council to make the right decision. The facts are all right there available to you.

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  16. I met the folks from Gulfstream Air and I have flown on Cape Air. Honestly, I think the better solution for our community is to have direct flights to Boston. Also attracting people from Boston or larger populations centers in a more comfortable plane might be an advantage to tourists who want to visit the area. Have you ever decided not to fly because the plane was so small you could tickle the pilot without leaving your seat? I have...it's called Cape Air. Despite the fact they are accomodating, They are a little small for comfort.

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  17. IF WE ARE LOOKING TO ATTRACT CANADIAN TRAVELERS,
    LET THE CANADIAN GOVERNMENT FUND IT!!!

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  18. THE MOST IMPORTANT DECISION OF THE YEAR IS WHAT AIRLINE YOU CHOOSE? REALLY? WITH MASSENA LOSING IT'S INDUSTRIAL BASE AND THE ECONOMY IN THE TANK YOU ARE MORE CONCERNED WITH WHICH SMALL AIRPLANE CAN FLY IN HERE AT THE TAXPAYER'S EXPENSE? WHO REALLY CARES?

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  19. Well, the decision has been made by the Massena Town Council. How can Gulfstream offer $39 fares to Boston? Well, with almost $16 million dollars in taxpayer money for the three North Country airports over two years, they could afford to let people fly FOR FREE!!! All this so the airports can try to get a "measly" million in FAA funding? Talk about stepping over a dollar to pick up a nickel!!! But then again, it isn't the town's money it is coming from the taxpayers... Where do they live? Of course, nobody in Massena pays federal taxes, right?

    What did the Town Council get from Gulfstream? PROMISES... Not much more. According to Gulfsteam International's own annual report, they lost $14 million in 2008 and called it an improvement when they only lost $7 million in 2009. In the company's own words in that financial statement they said they may not be able to continue operations without an influx of money. Congratulations! you may have helped provide the money to keep the company from going out of business. This at the expense of what has been reliable service... at almost half the price.

    I have read Gulfstream promises to tap the Canadian market. Sounds great, but is the town going to have to pay for that too? I understand from the Plattsburgh airport fight, US government money cannot be used to advertise for Canadian business. How much additional will that cost the Town of Massena?

    Gulfstram's finances are worse than Big Sky's were when they came to the North Country, but you have been sucked in by promises from a company desperate for the contract in order to survive. You had a stable partner with Cape Air. The town council has made it's decision. You will have to live with it. If it doesn't work, you will have to answer to the voters and we will be sure they are well aware of it!!!

    BR Richards

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  20. Dear BR Richards: thanks for the comments. We're concerned about Gulf Stream's viability, also. In fact , we researched it and we asked them about it. It is my understanding that the USDOT won't allow companies to bid if they are not financially stable and will not award them contracts either.

    And it is important to note that while we can offer messages of support and preference, ultimately DOT will decide who gets the bid based on price, viability and past performance.
    We contacted six other airports serviced by Gulf Stream under EAS contracts. All gave them stallar reviews. The company continues to offer an extensive schedule of flights in Florida and the Carribean.

    You concerns seem legitimate but I don't understand the motivation behind them. Maybe you can explain your commitment to Cape Air and the service they provide.....

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