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United drops Youngstown-Warren plans
VIENNA
Youngstown-Warren Regional Airport officials will continue to seek daily service from major airlines after United Airlines dropped its plans to establish a route to Chicago.
United said the airport’s revenue guarantee was far below what it would need to start and sustain daily service.
The airport’s team had secured $1.2 million in federal grant money and local matching funds from the Western Reserve Port Authority, and it was in the process of securing contributions to bring the total safety net to $1.75 million.
But according to a letter released Tuesday by Dan Dickten, the airport’s director of aviation, the Chicago-based airline wanted $7 million in revenue guarantees to be raised annually.
“That’s way high,” he said. He added that the airport is in talks to secure daily service from other major carriers for a significantly lower guarantee.
“It doesn’t mean we aren’t talking to other airlines, because we are,” he said.
In his letter to the WRPA board of directors, Dickten said United was facing pressure from a poor first quarter in which it reported a $489 million net loss. Its three most-recent startup services were failing, and crew shortages were causing scheduling conflicts across the country, he added.
“These and other contributing circumstances have caused the airline to hold off on any additional service startups,” Dickten wrote. On Monday, United told Dickten and Tom Reich, air-service development consultant, that “there is not a solid business case for establishing service at YNG,” but the company didn’t rule out the possibility of future plans.
“As with all communities, we will continue to analyze and maintain the possibility for future service if demand for air travel makes a solid business case for annual profits and network benefits,” United said. “As you know, we frequently meet with communities around the country to discuss potential air service and are always exploring possible new routes. YNG is no exception.”
United had received a one-time $2 million revenue guarantee from Metropolitan Topeka Airport Authority in Kansas to start flights between its Topeka Regional Airport and Chicago’s O’Hare International Airport. Because Vienna Township is closer to Chicago than Topeka is, the team estimated a slightly lower amount would be appropriate.
But service between Topeka and Chicago, started in January, has fallen short of expectations and has so far struggled to sustain itself, the letter read.
Airport officials had been reaching out to local governments and companies to solicit funds to reach their $1.75 million goal.
The Cafaro Foundation, part of Cafaro Corp., recently pledged $100,000 to attract the service.
Youngstown Mayor John A. McNally said city council was set to approve up to $40,000 in mid-May, but that vote likely was on hold until there is another potential deal in the making.
“I imagine the council commitment is contingent on definite plans or a definite airline” ready to commit, he said.
Officials will continue to move ahead with the pledge campaign, but no contributions would be collected unless daily air service is established at the airport.
Dickten said officials will meet with eight airlines at the annual Airport Council International “Jump Start” Air Service Development Conference in June to discuss local air service.
“As evidenced by the amount of interest given YNG by United Airlines over the past three months, the airport director feels the local YNG airport is getting closer to acquiring daily service by a major network carrier,” he wrote.