Sayeth Sean Kertes, chairman of the Westmoreland County Commission:
“Breeze Airways coming to Arnold Palmer Regional Airport is great news for Westmoreland County. New air service brings more travelers to our region, supports local jobs and businesses, and strengthens the airport’s role as an economic engine.”
Breeze, in a two-year deal with Palmer, will replace Spirit Airlines, which did a belly landing into Chapter 7 bankruptcy liquidation this past May. It will feature flights to Myrtle Beach and Orlando beginning next year.
Sayeth Frank Gamrat, executive director of the Allegheny Institute:
“I love the ‘economic engine’ line the Commissioner Kertes spouted. I guess he doesn’t realize this will be an O&D (origin and destination) situation serving locals who will be taking their money with them.”
Kertes can prove us wrong, once Breeze sets up shop at Palmer beginning in February, by providing us with data showing how many people, if any, are originating their travels elsewhere to come to the Greater Latrobe/Greensburg area.
Continues Gamrat, a Ph.D. economist:
“Given that Breeze already flies out of Pittsburgh International Airport (PIT), it’s unlikely to draw many people away from PIT, for now,” he says. “That could change if PIT starts jacking up passenger costs to pay for its new terminal.”
Thus, and in a perverted way, “This this may work out for Palmer.
“But under no circumstances should taxpayer money be priming this engine,” Gamrat concludes.
We would remind that Breeze was lured to Palmer with the promise of an $850,000 federal grant from the small Community Rural Air Service Program, which will pay Breeze to make up for any lack of business.
And we would also remind that the Breeze announcement came on the same day as Palmer’s re-grand opening celebrating the completion of a $22 million terminal expansion program that added a second gate and additional seating for waiting passengers.
Ah, yes, taxpayer subsidies beget taxpayer subsidies.
While Breeze’s Palmer and PIT flights are different, Jake Haulk, president-emeritus of the Allegheny Institute, asks why an airline already operating out of PIT would want to fly from the Westmoreland County airfield and compete with itself.
“If it wanted to offer additional service, it already has the infrastructure at PIT,” Haulk noted. “PIT needs more flights and passenger traffic; why would it not not counter offer anything?”
But the Palmer deal likely is a win-win for Breeze. If past is prologue, taxpayers also will be picking up the tab for Breeze baggage handlers and ticketing agents. And that’s on top of the $850,000 federal subsidy that gets paid out if Breeze’s passenger projections aren’t up to snuff.
As we’ve noted previously, that’s an incentive to not meet your passenger goals and force taxpayers to carry your losses.
And lest we forget, Breeze will be operating out of a just-dedicated $22 million expanded terminal – paid for primarily by state and federal grants (i.e. taxpayers).
That’s certainly a breeze for Breeze. But it’s a foul wind for taxpayers.
Colin McNickle is communications and marketing director at the Allegheny Institute for Public Policy (cmcnickle@alleghenyinstitute.org).
