Oh wow, this gets much worse than the original $3.9 million that the state of NC is chipping into the operation. Check out this article in today’s N&O and this one from the Greensboro News & Record.
I’ll break out some of the lowlights:
In addition to the $3.9 million from the state, Forsyth and Guilford counties along with a few other groups will contribute an additional $1.5 million in marketing;
The PTI Airport Authority is subsidizing each passenger on Skybus by $2.15, or $1.3 million per year if every flight is full;
And the destinations of the flights from Greensboro? Well, it’s a list of thriving metropoli such as:
– Punta Gorda, Fl.
– Chicopee, Mass.
– Portsmouth, NH (probably a little too late for the Edwards staff to take advantage of though)
– St. Augustine, Fl
– Ft. Lauderdale, Fl
– Gulfport, Miss. and
– Burbank, CA
Just check out this wonderful quote from Skybus’ CEO regarding incentives:
"Without the total package," Diffenderffer said, "much as I love you guys, I can be bought."
To top it off, a spokesman for the Department of Commerce said that this deal contains "no risk" since incentives are offered only after milestones are met. No risk? In the airline industry? Surely you must be kidding. There is significant and real risk. The failure rate of low-fare airlines is enormously high as I posted yesterday. Some people just don’t get it.
Wow – counties cry poor when it comes to financing new schools and “vital infrastructure” but magically find a pot of gold for corporate welfare to a business more likely to fail than not.