Mall developer considers investing in airline, linking to new mall

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



Mall developer considers investing in airline, linking to new mall
By Associated Press, 2/1/2002 00:13
SYRACUSE, N.Y. (AP) The Pyramid Cos. is considering investing in a
Syracuse-based start-up airline and tying it in with the proposed $1.8
billion retail and entertainment center it plans to build.

The discussions with Northern Airlines have included the possibility of
renaming the carrier Destiny Airlines, after the proposed Destiny USA
megamall.

Pyramid said a Syracuse-based airline offering low air fares, combined with
hotel and upstate vacation packages, could help bring visitors from other
states to Destiny USA, whch they hope to open in 2004.

''To support the 4,000 hotel rooms planned for Destiny and the new
businesses that will develop as a result of this project, we are committed
to developing a superior airline company in this market, which has been
poorly served for years,'' Pyramid founder Robert Congel said in a statement
released Wednesday.

The Destiny USA project calls for tripling the size of the existing Carousel
Mall, and also adding a four-story aquarium, a 1,500-foot recreation of the
Erie Canal, a 65-acre indoor park with a running brook, 4,000 hotel rooms
and a 50,000-square-foot New York Tourism/Exposition Center. Financing of
the project is still being negotiated between Pyramid and the city of
Syracuse and Onondaga County.

Timothy Sieber, the carrier's vice president of marketing, said Northern
approached Pyramid about an investment in the airline in September.

''They were very receptive,'' he said. ''I think they see the value of
having a hometown airline. An airline tied to the community is going to be
more focused on Syracuse.''

Although no deal has been cut between Northern and Pyramid, officials said
the mall developer was considering providing a ''large portion'' of the $60
million in start-up funds Northern needs to begin service.

If talks come to a successful conclusion, Northern said it could begin
operations out of Syracuse Hancock International Airport as early as the end
of this year.

Northern was formed by a group of local investors in 1996 with hopes of
launching a low-cost airline serving Northeast cities. However, raising the
millions of dollars needed to buy planes, hire pilots and get into the air
has proven difficult.

But Northern officials say the changes in the airline industry since the
Sept. 11 terrorist attacks are working in their favor. While major carriers
are struggling, low-cost ones like Southwest, JetBlue, AirTran and Frontier
are turning profits and attracting investors, they said.

Northern also is hoping the Destiny USA project will help the airline's
prospects, Sieber said. Studies estimate the project will draw 35 million
visitors a year, including 12.3 million from outside New York. Some of those
out-of-state visitors will come by air.

Northern plans to use new 117-seat Boeing 717s and instead of flying point
to point, it will use the more traditional hub-and-spoke system, with
flights coming into Syracuse before moving on to other cities. The new plan
will allow the airline to serve more cities with fewer planes.




_________________________________________________________________
MSN Photos is the easiest way to share and print your photos:
http://photos.msn.com/support/worldwide.aspx

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]