Monday, December 02, 2013
Let's Raise Rates at the Airport!
A Morning Call report that the Lehigh Valley "International" Airport intends to raise rates has Lehigh University Professor Steve Thode scratching his head. He's prepared the graph you see above, showing a declining passenger count, and makes this point.
Let's see if I have this right:
Passenger traffic at LVIA will drop 16-17% this year after dropping almost 20% last year;
Passenger traffic is off more than 40% since 2004;
Half the airlines serving LVIA have left. Even when there were 8 carriers, LVIA was operating well below capacity; and,
One of LVIA's fastest growing "routes" is the bus to Newark.
So, here's their great idea: since we have half as many tenants for our building, let's raise the rent on our (few) remaining tenants!
But Doctor Thode, at least Board Chair Tony Iannelli and Exec Director Chuck Everett are still paying their staff with no planned layoffs.
Perhaps they should read a little about the demise of Beth Steel, Mack Trucks, Lucent, and any of a number of other LV powerhouses now gone.
You don't pay people to do nothing.
... unless they work for the government.
Then you pay them a lot and hope they do nothing.
Updated 11:10 AM: The United Bus is Airborne!
This comes right from the LNAA webpage.