Fwd: Stagnant SJ airport plans to subsidize any new air service

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--- In BATN@xxxxxxxxxxxxxxx, "5/12 SJ Business Journal" <batn@...> 
wrote:

Published Friday, May 12, 2006, in the San Jose Business Journal

Mineta Airport offers fee waiver in bid to lure new routes

By Andrew F. Hamm

In an effort to spur airline traffic, Mineta San Jose International
officials are offering to waive all landing fees and terminal rents
for up to one year for airlines that add flights to certain cities.

Passenger numbers at Mineta have been stuck at about 11 million
passengers annually, 20 percent below pre-Sept. 11, 2001 levels.

The incentive program, still in its formation, would include free
marketing from the San Jose Convention & Visitors Bureau and the San
Jose Silicon Valley Chamber of Commerce to boost passenger numbers 
for
non-stop flights to a desired city.  The landing fees and terminal
rent alone would be worth in excess of $1 million annually per
assigned flight.

"The first year of a startup flight is a risky proposition for an
airline," says William Sherry, aviation director for Mineta San Jose
International Airport.  "This program means, for all intents and
purposes, that they fly for free."

Mineta San Jose officials are primarily targeting international
travel.  Besides Mexico, the airport's only international destination
now is an American Airlines flight to Tokyo.

The airport has not yet selected which cities it will target for the
promotion.  Mr. Sherry says it will seek suggestions from business
organizations and the general public.  Some suggestions include 
Paris,
Taiwan, Hong Kong, Dublin and London, as well as some domestic
destinations such as Detroit, Miami and Raleigh-Durham, N.C.

The San Jose Silicon Valley Chamber will be conducting a survey of 
its
members to find out which cities they would like Mineta San Jose to
connect with.

But developing incentive programs lucrative enough to catch airline
attention will be tough, says Terry Trippler, airline specialist for
Cheapseats Inc.

"Geographically, San Jose is being nailed," Mr. Trippler 
says.  "It'll
be hard to compete against (San Francisco International Airport.)"

The thinking is that the further one flies, the less important 
airport
location becomes.

--- End forwarded message ---

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