spinkid wrote:How much does the state actually pay to keep them? I assume they get some sort of compensation. I read the article, but didn't see it.
As a taxpayer in CT, one of my thoughts is "Norwegian would have done it for free". lol
They guarantee the A321 and hype it in the statement, but I don't think that makes a difference to the average passenger.
Read the article.
Under the original agreement, DECD was to provide Aer Lingus up to a $4.5 million revenue guarantee the first two years if total revenue falls short of a pre-determined target.
The new agreement announced today calls for a reduced guarantee (limited to certain winter months) of not more than $3.8 million in the second year, dropping to not more than $3 million in the third year, and not more than $2 million in the fourth, bringing the maximum four-year potential subsidy total to $13.3 million.
In return, Aer Lingus has already committed to operating the service in the fifth and sixth year of service with no subsidy from the state.
In addition to state support, in the first two years of the service the CAA contributed to the success of the route with landing fee waivers and the availability of substantial marketing support.
Greetings from Hong Kong.... a subsidiary of China Inc.