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ajsljet45
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Joined: Wed Feb 18, 2015 7:54 pm

EI commits to BDL - at least 4 more years

Thu Sep 13, 2018 5:20 pm

Great news for BDL! Nice to see mention of A321LR as well.

https://portal.ct.gov/Office-of-the-Gov ... More-Years
 
Eirules
Posts: 1971
Joined: Sat Aug 04, 2007 5:17 am

Re: EI commits to BDL - at least 4 more years

Thu Sep 13, 2018 5:31 pm

Good news for both EI and BDL. I wonder if another carrier such as BA or LH came along, would they equally get such profit guarantees?
The way you cut your meat reflects the way you live....
 
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spinkid
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Joined: Fri Jul 20, 2001 5:59 am

Re: EI commits to BDL - at least 4 more years

Thu Sep 13, 2018 5:34 pm

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.
 
UPNYGuy
Posts: 332
Joined: Thu Jan 06, 2011 4:14 pm

Re: EI commits to BDL - at least 4 more years

Thu Sep 13, 2018 5:42 pm

Honestly, I would rather the A321 vs. a 757 provided they are similarly densified. The cabin on the Airbus is slightly wider, and it makes for a more comfortable flight for me if I am by the window.

Now on the other hand, if (for example) you are comparing a 34 inch pitch seating arrangement 757 to a 28 inch pitch A321... that changes things
 
BestWestern
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Re: EI commits to BDL - at least 4 more years

Thu Sep 13, 2018 5:53 pm

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.
 
PVD757
Posts: 3290
Joined: Sun Aug 24, 2003 8:23 pm

Re: EI commits to BDL - at least 4 more years

Fri Sep 14, 2018 12:31 am

So in other words, $13.3M over 6 years or averaged out, $2.2M per year. It does make it tougher for BDL to aggressively recruit most other European service that could hurt EI’s flights.

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