Monday, December 10, 2012

Humboldt County Raises $1-Million Dollars In Effort To Attract Second Airline

Press Release:

EUREKA, CA) - The Redwood Region Economic Development Commission (RREDC) announced today that a giant step has been taken towards attracting more air service to the area — and bringing competition back to the Arcata Eureka Airport (ACV)— when a $1 million fundraising goal was reached today. The money will be used to support a new air carrier flying to a new hub airport until that route is self-supporting. RREDC and the County are now actively recruiting airlines and hope to have new service in place by spring 2013.
Photo from Humboldt.edu

“We all recognize that air service is a crucial link to the world for Humboldt County, just like the Internet and U.S. [highway] 101,” according to Don Ehnebuske, executive director of RREDC. “But like many people, we questioned why the community should raise funds to attract an airline to the area. After all, isn’t it their business to provide air service? However, when we started looking into it, we came to understand the huge payback for everyone in Humboldt County.”

Ticket prices shot up when Horizon ceased flights from ACV, leaving only one airline serving the area, and passengers began driving to other airports to take flights. Average one-way ticket prices to Los Angeles are now about $100 over the competitive fares of two years ago, costing the tens of thousands of passengers flying to LA millions of dollars a year. And there are about 50,000 fewer passengers flying from the airport every year, which dramatically reduces FAA construction funding available for local contractors and suppliers. The total loss to the community is at least $5 million per year by the most conservative estimates.

The $1 million raised came from the Department of Transportation, the Headwaters Fund and from over 70 local donors — businesses, tribes, individuals and local governments. The total local contribution was $250,000. That translates to at least $40 in reduced prices and construction jobs for every $1 invested by the community over the two-year agreement with a new airline.

6 comments:

  1. What happened the last time an airline company was guaranteed income until it paid for itself? As far as I can remember, when it was unable to make it on its own it(and I know this makes as much sense as subsidizing the airline company)just folded its wings and flew away. How come money is available to subsidize business, but its never available for a Homeless Campsight, or sufficient low-cost housing? How many of the 1% live in Humboldt County anyway?

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  2. "Henchman Of Justice" says,

    Tom,

    Huge payout is "not for everyone". That is smack talk by Ehnebuske.

    "Bring back competition"???? What competition? Competition for subsidies maybe??? Ain't no competition when airlines won't do service on their own dime here unless the local movers and shakers secure minimum seat subsidies!

    The airport is great for "emergencies" and "supply routes", but passenger travel IS NOT putting money into Humboldt County as "hyped-up" as the local shmoozers make it out to be.

    Finally, since vaguenesses are so common in Humboldt news delivery services, what does this subsidy break-down to be:

    Headwaters = $?

    Local businesses subsidizing = $? (less than 300 businesses????)

    Federal aid = $?

    Other sources =$?

    Oh, and how again do I benefit? Not to say a little McKinleyville Measure C greed ain't being utilized by the movers and shakers, again --> this time the airport. - HOJ



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  3. People like me stopped flying or are forced to fly out of another airport. It cost the county 5 million in contracts for the airport. Will Arkley's train have passenger service? As much as I hate so see us have to raise money to get an airline, when the country allowed the airlines to be deregulated the country lost control of it's transportation. Most public transportation has to be subsidized to work. This is just the modern version of public works. The fault in this system is that the public takes all the risk but if there is profit to be made, we don't get to share in it. I also support the high speed rail being built in the central valley. Our state should be self sufficient and ready for the current century.

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    1. "Henchman Of Justice" says,

      Tom, are you refering to Ronald Reagan's term with regard to the airline industry, bankrupt airlines, the process of bankruptcy that allows the higher-ups to save their personal assets while the material laborers and suppliers have their contracts and costs eliminated and squashed in the process where they lose bigtime.......but the airline executives ride home like princes and princesses, laughing themselves to the bank first to make sure the Judge laundered the money into their accounts.

      If HOJ took the plane, he paid more understanding the frauds. It sucked, but it felt better knowing that HOJ had no part in "sticking it to locals" by stealing their Headwaters funds to subsidize a corporate money laundering business that conspires with local phat cats and movers and shakers whom pin all of us for their personal little escapades by way of air service.

      Of course, these insiders only willingly discuss "the poor" when it is to their advantage with money to include the poor. This ain't about saving a poorer person air fares; rather, this is all about using poorer people as an argument for the wealthy people who could pay more in ticket prices (but don't want too), but choose to loot the Headwaters Fund for their subsidies and air fare decreased rates. The overall cost basis AGAINST the community grows.

      The economic data pumped-out to proclamate the airport's economic impact is manufactured and fabricated and over-stated, just like Measure "C" in McKinleyville (re-read the supports list to see the local frauds and/or dipshits. Putting duopolists and their supporters in control is to bury America deeper and deeper into debt and chaos. Heck, it is so bad right now, HOJ is getting people coming-up to him, thanking him for explaining politics and stuff; and, that they are now moving away because this area is not a good place to raise a family, the people in charge are crooks, etc.... HOJ feels bad, but good, weird. HOJ wants the best for everyone less the liars, cheats and thieves, molestors, rapists and murderers who deserve only punishment! - HOJ

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  4. Robdon, Horizon was making money on the route to Los Angeles but the merger with Alaska Air had the company abandon the route. Delta on the other hand just bailed out as I recall.

    If people that have businesses can't get in and out of the county the way businesses people in the rest of the world do, than they are at a global disadvantage.

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    1. "Henchman Of Justice" says,

      Tom,

      The airport is not delivering goods, just passengers it seems....no consumer staples or electronics; no clothing or housewares, etc....the airline is for phat cats and their cronies, nothing more. Other regular people has always been, but at a higher and higher cost basis.

      In fact, Humbokdt has to have "business" to be able to brand itself as "business oriented". Again, this is for the local phat cats to look like phat cats. They can pay a higher price too, it won't bury their business that does not exist in the capacity that justifies air service by way of subsidy. If these local phat cats need the subsidy, they why doe they lie about how good of business people they are? Obviously, either their business is going under without air service, or not! So, where are these businesses that "May go under without air service that provides a global disadvantage"? Hmmm, not as if SunValley Bulb farm uses the airline service for purposes of not going bankrupt. - HOJ

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