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Investor Plan For New Airline Based At MSY  
User currently offlineMSYguy From United States of America, joined Feb 2007, 113 posts, RR: 0
Posted (6 years 8 months 4 weeks 12 hours ago) and read 3729 times:

The local news has just reported on a local investor's plan to do an airline startup, hubbed at MSY, using seed money from the Bank of Scotland and the State of Louisiana. My initial thoughts about this are that its chances of long-term success are slim. The contemplated airline seems to be too small to make the economics work out. Fuel cost seems to be another major obstacle. I suppose SkyBus is the closest example, and it remains to be seen whether that model is sustainable over the long term.

Here is a link. Note that the 28 so-called "direct" flights is inaccurate. MSY currently sees nonstop service to around 40 destinations -- down from around 45 before the storm.

http://www.wwltv.com/local/stories/wwl013108tphub.7a61fde6.html

18 replies: All unread, jump to last
 
User currently offlineCommavia From United States of America, joined Apr 2005, 11752 posts, RR: 62
Reply 1, posted (6 years 8 months 4 weeks 12 hours ago) and read 3710 times:

Starting an airline should be like getting married or setting up a law practice. You really should have to get a license or something.

This is just so ridiculous and comical. This - if it even gets off the ground - will fail miserably and be gone quite quickly, with millions of dollars lost in the process. What a waste of capital. These people would be better off just buying a CD from their local bank.


User currently offlineLAXintl From United States of America, joined May 2000, 25794 posts, RR: 50
Reply 2, posted (6 years 8 months 4 weeks 12 hours ago) and read 3691 times:

As I recall one MSY hub failure;

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Photo © Frank C. Duarte Jr.



Seriously, investors would be better donating their money to civic project in N.O. then trying to pour it in to an airline venture with near no chance of long term survival. I suppose smell of kerosene must be overwhelming for some.  banghead 



From the desert to the sea, to all of Southern California
User currently offlineTom in NO From United States of America, joined Nov 1999, 7194 posts, RR: 33
Reply 3, posted (6 years 8 months 4 weeks 12 hours ago) and read 3650 times:

The number of paper airlines that were supposedly going to serve MSY as either a hub or as a focus ciy is long and distinguished.....and begins with Direct Air, Air Gumbo, and Trans Caribbean.

Tom at MSY

[Edited 2008-02-01 10:50:02]


"The criminal ineptitude makes you furious"-Bruce Springsteen, after seeing firsthand the damage from Hurricane Katrina
User currently offlineShadez From United States of America, joined Sep 2007, 204 posts, RR: 0
Reply 4, posted (6 years 8 months 4 weeks 12 hours ago) and read 3645 times:

lol.. I like the footage of the news. AA DC-10's, US Air 732 in the silver. I think they need some new footage...

User currently offlineMOBflyer From United States of America, joined Sep 2007, 1209 posts, RR: 4
Reply 5, posted (6 years 8 months 4 weeks 12 hours ago) and read 3645 times:

I don't understand the negativity nor the comparison to SkyBus. MSY is similarly situated, alteast geographically, similarly to IAH. Granted, it has less of a population base, but it's population base is significant, nonetheless. And the reference to the 'friendly-fares' may merely mean 'competitive' fares. The $184 max will likely increase with inflation, and we don't know how large the max fare bucket is.

Until we see more of the plan and proposed routes/fare structure, their is no need to be so negative. But we can and should be optimistic, IMO.

Is the media mis-construing the whole 'buy and airline' for 'start an airline'?

[Edited 2008-02-01 10:57:56]

User currently offlineDALMD88 From United States of America, joined Jul 2000, 2578 posts, RR: 14
Reply 6, posted (6 years 8 months 4 weeks 12 hours ago) and read 3634 times:



Quoting Commavia (Reply 1):
Starting an airline should be like getting married or setting up a law practice. You really should have to get a license or something.

You do need a license. All it takes is a plan and ususally a bunch of money. Sound like with RBS they have the cash. It could work, but we all know the sucess rate for new airlines is horrible. With the local and national economies both rather poor I would question the timing. I also don't like the state being asked to pony up a mear $75M. I'll bet there are a 1000 better uses for this money in NO.


User currently offlineMSYguy From United States of America, joined Feb 2007, 113 posts, RR: 0
Reply 7, posted (6 years 8 months 4 weeks 12 hours ago) and read 3587 times:



Quoting DALMD88 (Reply 6):
I also don't like the state being asked to pony up a mear $75M. I'll bet there are a 1000 better uses for this money in NO.

That may be true. One note -- the state's obligation to kick in the money (if the State even agrees to this plan, which remains to be seen) would not kick in until the airline reaches 50 daily flights.


User currently offlineDAL767400ER From , joined Dec 1969, posts, RR:
Reply 8, posted (6 years 8 months 4 weeks 12 hours ago) and read 3577 times:

You know, I am in financial trouble. Maybe I should also come up with a plan for a start-up airline in some supposedly underserved city, secure some gullible investors, give myself a 6-digit salary, and then run the airline into the ground after a maximum of 3 months of actually flying. That seems to be the easiest method to make money these days  Wink .

User currently offlineMSYguy From United States of America, joined Feb 2007, 113 posts, RR: 0
Reply 9, posted (6 years 8 months 4 weeks 12 hours ago) and read 3557 times:



Quoting MOBflyer (Reply 5):
I don't understand the negativity nor the comparison to SkyBus. MSY is similarly situated, alteast geographically, similarly to IAH. Granted, it has less of a population base, but it's population base is significant, nonetheless.

I don't think the comparison to IAH can fairly be made. The success of that hub stems from two things MSY would not have under this plan: (1) a massive local O&D market and (2) a massive airline based there.

With that said, I don't think this is plan, despite its numerous obstacles, is categorically doomed to failure. I made the comparison to SkyBus because, while CMH is a larger town, I think MSY has a comparable encatchment (sp?) area; and while CMH has a larger business market than MSY, MSY certainly has a larger tourist market than CMH. Of course, SkyBus has a superlow fare structure, and the proponents of this plan have not specified (and justifiably so) what their model will be.

I'm with you, though. While I don't predict long-term success, I also don't think it's a foregone conclusion that this proposal will fail.


User currently offlineRjnut From United States of America, joined Dec 1999, 1237 posts, RR: 0
Reply 10, posted (6 years 8 months 4 weeks 12 hours ago) and read 3528 times:

the could buyout Express jets branded ops and go from there!!

MSY has been one of theri better stations!


User currently offlineType-Rated From , joined Dec 1969, posts, RR:
Reply 11, posted (6 years 8 months 4 weeks 11 hours ago) and read 3491 times:

Wasn't there a plan for a state funded airline to be MSY based just a couple of years ago? Whatever happened to THAT one?

User currently offlineBennett123 From United Kingdom, joined Aug 2004, 7701 posts, RR: 3
Reply 12, posted (6 years 8 months 4 weeks 11 hours ago) and read 3464 times:

It would help if they said what the airline will be called, where it will fly and what aircraft.

User currently offlineMIAMIx707 From , joined Dec 1969, posts, RR:
Reply 13, posted (6 years 8 months 4 weeks 11 hours ago) and read 3451 times:



Quoting LAXintl (Reply 2):

What a wonderful livery that of Pride Air. Would the new one look this nice? Nah not a chance.


The more airlines the better. Gotta love the gloom and doom by the armchair experts

Quoting Bennett123 (Reply 12):
It would help if they said what the airline will be called, where it will fly and what aircraft.

So you can critiize it? I hope they don't tell


User currently offlineBennett123 From United Kingdom, joined Aug 2004, 7701 posts, RR: 3
Reply 14, posted (6 years 8 months 4 weeks 11 hours ago) and read 3418 times:

I would hope that they would have concrete plans before going public.

User currently offlineMSYPI7185 From United States of America, joined Oct 2007, 710 posts, RR: 0
Reply 15, posted (6 years 8 months 4 weeks 10 hours ago) and read 3373 times:

IIRC the plan is to buy an established airline, which is apparently is up for purchase and relocate it to MSY. Whether they are talking about its flight ops or the entire carrier I am not sure. What I am fairly sure is that we are talking about an established carrier here.

The latest start-up recently on the drawing board is Direct Air. This airline is still being discussed by several investors, but is not what this article is about. My guess is if this plan with the RBS goes through, then Direct Air would be done!

Mark


User currently offlineTom in NO From United States of America, joined Nov 1999, 7194 posts, RR: 33
Reply 16, posted (6 years 8 months 4 weeks 10 hours ago) and read 3359 times:



Quoting Type-Rated (Reply 11):
Wasn't there a plan for a state funded airline to be MSY based just a couple of years ago? Whatever happened to THAT one?

That was DirectAir. The plan was for the state to kick in $300 million after a certain number of flights were reached. You see where that plan's gone  wink 

Tom at MSY



"The criminal ineptitude makes you furious"-Bruce Springsteen, after seeing firsthand the damage from Hurricane Katrina
User currently offlineJetJeanes From United States of America, joined Oct 2004, 1431 posts, RR: 1
Reply 17, posted (6 years 8 months 4 weeks 10 hours ago) and read 3326 times:

A billion one is plenty of cash to get a small airline started i dont know what the hottest cities would be .


i can see for 80 miles
User currently offlineMSYguy From United States of America, joined Feb 2007, 113 posts, RR: 0
Reply 18, posted (6 years 8 months 3 weeks 5 days 15 hours ago) and read 3137 times:



Quoting Tom in NO (Reply 16):
hat was DirectAir. The plan was for the state to kick in $300 million after a certain number of flights were reached. You see where that plan's gone

One note in the story was that previous, similar plans had not enjoyed any buy in from the governor's office; apparently, Blanco's economic development guy was luke warm on the idea. Jindal's administration, conversely, has expressed strong interest. Who knows if that will be difference maker. . . .


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