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September 4, 2006

Worcester bids adieu to Allegiant Air

Budget carrier departs "worst" city

After a love affair not lasting a year, Allegiant Air flew for the last time out of Worcester Regional Airport on September 3. After initially expressing an interest to grow with the city, Allegiant instead became the 13th commercial carrier to break ties with the struggling airport.

The budget carrier offering direct flights to Orlando-Sanford Airport in Florida cited numerous reasons for leaving Worcester, including high fuel costs and lower than acceptable load capacity per flight. With the departure, Worcester Regional Airport is left once again without an anchor airliner.

Barely nine months ago, city and state officials gathered at Worcester Regional Airport for a ribbon-cutting ceremony heralding the arrival of Allegiant Air LLC. Last month, Allegiant cut its ties with Worcester.

"It was our worst performing city that we have in our system," says Tyri Squyres, an Allegiant spokesperson. "We tried for a long time to make it work, and everyone was fully aware of that."

The news comes weeks before an anticipated report from the Federal Aviation Administration with suggestions of how to best use New England’s regional airports. Included in the report is TF Green in Providence and Manchester-Boston in New Hampshire, long considered to be Worcester’s greatest competition.

Happy customers not enough

Despite celebrating its 10,000 passenger on a flight earlier this year, Allegiant officials claim that the passenger capacity – the number of seats filled on a place – never matched anticipated numbers. While City Manager Michael O’Brien cited 85 to 90 percent capacity, Allegiant’s Squyres disagrees, noting that the city’s numbers were "an overstatement." Although Squyres could not provide the actual number, she maintains that the larger issue was rising fuel costs and competing with Boston carriers.

However, other factors may have played a role in Allegiant’s departure. For one, the MD-80 aircraft flown by Allegiant were not sufficiently fuel-efficient. For another, the Las Vegas-based budget airliner plans to go public, and may be concerned with showing investors it can shave costs when needed to maintain a healthy bottom line. A third factor remains whether or not Allegiant ever felt comfortable with the Bay State’s tax on gasoline. Local experts say that when drafting up the contract, Allegiant was unaware of the additional surcharge on fuel.

"There were nine communities with an excise tax on aviation fuel, and we’re one of them," says Jim Delehaenty, chairman of the Worcester Airport Commission. Delehaenty added that the tax was not looked on favorably by Allegiant.

With these hurdles in place, Allegiant made its decision to leave the Worcester market for brighter pastures. The airline feels that it has other interested parties for their services in more profitable markets, says Squyres.

What’s next for Worcester

The city has contended for several months that ongoing discussions with potential vendors include corporate and commercial carriers, and that an announcement regarding a new deal is eminent. However, just who, or what, that partner will be remains an unknown.

One possibility lies in building a base of corporate jets at Worcester Airport. The Airport Commission’s Delehaenty noted that a new roof is going on a hangar at the airport, and that for many corporate providers, an up-to-date hangar is a necessity. Combined with the introduction of very light jets (VLJ), airports like Worcester could service the needs of new corporate vendors.

"Worcester has what it takes to be a hub for commercial and general aviation activity," says Richard Walsh, spokesperson for Massport.

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