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LAXintl
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Lawa Approves ONT Incentive Plan

Tue Oct 30, 2007 6:29 pm

As part of LAWA's continued effort to foster increased air service at Ontario the Los Angeles Board of Airport Commissioners has approved a package of incentives for new service.

New domestic destinations will be able to receive 6 months of waived landing fee's while new international can receive 1 years of free landing fee's in addition to various parking and rental discounts.

Additionally LAWA in association with Southern California Association of Governments will be conducting a study to extend the Metro Gold Line to the airport beyond currently planned 24 mile extension from Pasadena to Montclair.

Lastly, the commission also approved first phase plans to proceed with Pacific Gateway Cargo Center which calls for development of a 94 acre inter-modal (plane, train, truck) facility located on the North West corner of the airfield to cater for brisk regional growth in air cargo operations and avoid over-concetration at LAX.
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JRDC930
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RE: Lawa Approves ONT Incentive Plan

Wed Oct 31, 2007 5:24 am

Its about time, hopefully this will attract some more airlines so Inland Empire residents dont have to make a 30Hr drive to L.A. on the wonderful freeway system. The Metro should help get people from beyond the I.E. ONT is about 1trillion times easier to depart and arrive than LAX. It would be nice to spot some new airlines too.  Smile I really hope they are serious this time.
U.S. Legacy carriers,STILL leaders in lowering industry standards...
 
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LAXintl
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RE: Lawa Approves ONT Incentive Plan

Wed Oct 31, 2007 5:44 pm

I know LAWA currently offers other marketing incentives (subsidized advertising etc.. ) for new airlines or service at ONT, but this becomes the first formal pricing incentive.

Allegedly they already have one international airline about to sign on, along with interest by domestic airlines to add a few routes if they know they can get a little break.

The cargo idea also has merit. With Inland Empires brisk economic growth and fact that 70% of all LA area cargo arrivals really head outside the region an intermodal facility could do real well and help reduce or at least level off flow via Los Angeles itself.
From the desert to the sea, to all of Southern California
 
AADC10
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RE: Lawa Approves ONT Incentive Plan

Wed Oct 31, 2007 6:26 pm

It is still a weak incentive since landing fees are not particularly high to begin with and are only a tiny portion of airline costs. Better cargo facilities help but most of the cargo is coming from Asia in the bellies of passenger flights to LAX. The real killer at ONT is the lack of business passengers. Premium business passengers are mostly on the westside of Los Angeles, much closer to LAX than ONT. The area around ONT has a fast growing population but that area is also one of the hardest hit regions of the country by the housing slump.

The only thing that would work would be to boot prop planes, RJs and WN out LAX. The only current way to do that is to flatten landing fees by weight so that all planes pay the same fee and build massive infrastructure like new terminals, roadways, rail stations, peoplemover, whatever. The FAA requires fees to be revenue neutral so big spending would have to accompany landing fee increases.
 
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LAXintl
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RE: Lawa Approves ONT Incentive Plan

Thu Nov 01, 2007 12:21 am

Quoting AADC10 (Reply 3):
The real killer at ONT is the lack of business passengers

True, ONT is much more of a Southwest type airport and good reason why the carrier is by far the largest operator.

Not too long ago Jetblue's regional manager was quoted as stating the carrier continues to look at additional West Coast opportunities and ONT with ample facilities could play a central role.

Quoting AADC10 (Reply 3):
Better cargo facilities help but most of the cargo is coming from Asia in the bellies of passenger flights to LAX

True but there is a lot of freighter activity at LAX. Matter of fact, one Asian cargo airline is getting close to swapping its LAX service over to ONT once it works out some warehousing issues.
As stated the majority of cargo landed in LA goes outside the region anyhow so their is no huge compelling reason to operate at LAX particularly when you also consider LA's industrial zone is to the East also towards ONT.


Suppose time will tell, however its quite obvious that LAWA will continue to pursue things that make operations at LAX less and less attractive compared to its regional peers.
From the desert to the sea, to all of Southern California

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