Specific to the LH
- Actual revenue passenger miles?
- Cargo revenue vs. passenger revenue? (I'll bet cargo is much higher)
- Ave. # of passengers during the winter season?
started this almost a year ago, so the people flying on it druing the past 11 1/2 months are using the tickets that were purchased (at a discount?) as part of a block sale to several different local companies, at a set rate, and LH
is benefitting from incentives offered by the port. So yes, the first year of operations will look good. The key statistic to look at will be revenues and expenses once the incentives disappear and the original ticket blocks are used up. Only then will we see the true performance of this service, and only then can we make a determination of its long-term viability.
Remember also that the economies of both Oregon and Germany are still in recession mode right now. If the economy of one or both improves, then the long term outlook for PDX
keeping the service is good. If the status quo remains in place, hmmm...not good. There is a lot of political pressure in Oregon to keep this LH
flight and make is successful, so I would expect the Port to modify/renew to whatever ends necessary to keep it. Oregon has closer business ties with Germany than the Seattle area does, and I'd be curious as to how many people from the SEA
area fly to PDX
to catch this PDX
, avoiding the hassle of going through YVR
. In SEA
would have to compete against BA
, SAS, and NW
. By sticking with PDX
, they can serve the US Pacific Northwest knowing there will always be some incentives offered from the city, not to mention no other competition for nonstop service to Europe.
Here's what Oregon/Portland can do to increase their chances of keeping the flight:
- aggressively market Oregon/SW Washington as a tourist destination in the FRA
and Berlin markets, especially the natual outdoors and recreational opportunities. Germans LOVE the outdoors, and if marketed correctly at a good price, Oregon is a perfect place to come visit. An hour to the ocean and mountains!
- Promote Oregon's tax structure to German companies, i.e. lower property taxes and NO SALES TAX...compared with WA
, Oregon clearly has the advantage.
- growth potential of Oregon's agribusiness industry, not to mention wineries/microbreweries.
Just my .02.
And the winner for best actress is....REESE WITHERSPOON for 'Walk the Line'!!!!!!!!