Date: 06-10-2015
What goes up must come down.
After months of under-performance and constant controversies, Appalachian Air, the commercial air service operating out of the Pikeville-Pike County Regional Airport, will cease operations in the coming weeks.
In a statement issued Tuesday by commercial air service consultant Luke Schmidt, Appalachian Air will end service to the Pikeville-Pike County Airport (PBX) in July on an as-yet-undetermined date. In the statement, Schmidt blamed the failure of Appalachian Air on the hardships currently being experienced in the coal industry due to federal regulation.
“The failure of Appalachian Air to gain traction in the marketplace is yet another result of President Obama’s ‘War on Coal,’” Schmidt said in the statement.
The service’s failure to get off the ground may have lasting effects on Pikeville and Pike County, one local official said.
Pikeville City Manager Donovan Blackburn said “the community wanted this service five years ago,” referencing establishing some form of commercial air service. He said the city received numerous letters from the public and the local business community asking for some form air service and with Appalachian Air, it was an “uphill battle to get it here.” Now that the service is all but dead, there may not be another air service in Pikeville in the near, or remote future.
“It was a great challenge and a great success to create a model that’s never been done before,” Blackburn said. “The community wanted it and it was a long time getting it here and we’re extremely disappointed that it didn’t work because of the current state of our local economy and the ‘War on Coal.’ I believe if we weren’t in the economic condition we’re in right now, we wouldn’t be here talking about this situation.”
Appalachian Air completed its first round trip revenue flight to Nashville on Oct. 27. The service was established to fly riders to Nashville to connect with larger commercial airlines. The service was originally touted to feature seamless baggage transfer to connecting airlines through the use of federal baggage screeners originally proposed to work out of the terminal at the Pikeville airport.
The seamless baggage transfer, however, was never established, officials have said, and federal baggage screeners were never placed in the Pikeville-Pike County Airport’s terminal.
Despite launching without the seamless baggage transfer, Schmidt said in the statement that Appalachian Air has performed well logistically, boasting a “nearly 100 percent operational reliability for all flights which were scheduled to operate.” The airline also had an “aggressive promotional pricing” effort, equating to a 50 percent off discounted price for much of Appalachian Air’s operational existence, the statement said. The service, however, has struggled to get passengers in the seats. According to figures presented to the Pikeville-Pike County Airport Board by Schmidt, the service, since launching last fall, has seen ridership numbers well below initial projections for the service.
According to Tuesday’s statement, the service was “strongly supported by the business community, the local state legislative delegation, (Gov. Steve Beshear) and members of Kentucky’s congressional delegation. Job loss in the coal industry, the statement said, had “a huge impact” in the local economy.
“… The decline in the economy made it very difficult to get enough passengers on board to get to a sustainable, or even break even position,” Schmidt said in the statement.
Blackburn echoed Schmidt’s statements about support for the initiative, saying that state and federal support helped attract commercial air service to Pikeville. He added, however, that without a significant economic recovery, there will likely not be a similar effort in the future.
“We’re fortunate that Pikeville has been very prosperous, but we also recognize that some of the outlying areas have not been as fortunate,” Blackburn said. “I’ll never say ’never,’ that’s just not the type of person I am. But, speaking realistically, unless there is some type of study and data to show a significant economic recovery in our area, I would personally be surprised to see another provider view this market as viable for a similar service.”
The statement said passengers who have booked flights on Appalachian Air for July or later will be contacted directly by Public Charters, Inc. concerning their tickets. The statement also said ceasing Appalachian Air’s operations is the “fiscally responsible step” in consideration of the minimum revenue guarantee which was established for the service using federal funds. Any unused funds, the statement said, will be allowed to be returned to the grant providers.
Blackburn said Public Charters, one of the companies which handled the operations of Appalachian Air, remains under contract for service to the Pikeville-Pike County Airport, and he is in discussions with the company regarding the date on which the airline’s operations will cease. He said he hopes the end date will come sooner, rather than later.
“In my opinion, I hope we can stop as soon as possible,” Blackburn said. “With the revenue subsidy payments still being made, it would seem to me to be the most fiscally responsible step to go ahead and stop the service as soon as possible and put that money back in the hands of the federal government, which could then take it and invest it in a viable project somewhere else.
“Appalachian Air has suffered from the tough economy, like a lot of other businesses have,” Blackburn said. “We were able to get it off the ground without the use of any local tax base or local dollars, but it’s ultimately another casualty of the tough times we live in now and the ‘War on Coal,’ and while it’s disappointing that it is coming to an end, it’s the fiscally responsible and reasonable thing to do.”have lasting effects on Pikeville and Pike County, one local official said.
Pikeville City Manager Donovan Blackburn said “the community wanted this service five years ago,” referencing establishing some form of commercial air service. He said the city received numerous letters from the public and the local business community asking for some form air service and with Appalachian Air, it was an “uphill battle to get it here.” Now that the service is all but dead, there may not be another air service in Pikeville in the near, or remote future.
“It was a great challenge and a great success to create a model that’s never been done before,” Blackburn said. “The community wanted it and it was a long time getting it here and we’re extremely disappointed that it didn’t work because of the current state of our local economy and the ‘War on Coal.’ I believe if we weren’t in the economic condition we’re in right now, we wouldn’t be here talking about this situation.”
Appalachian Air completed its first round trip revenue flight to Nashville on Oct. 27. The service was established to fly riders to Nashville to connect with larger commercial airlines. The service was originally touted to feature seamless baggage transfer to connecting airlines through the use of federal baggage screeners originally proposed to work out of the terminal at the Pikeville airport.
The seamless baggage transfer, however, was never established, officials have said, and federal baggage screeners were never placed in the Pikeville-Pike County Airport’s terminal.
Despite launching without the seamless baggage transfer, Schmidt said in the statement that Appalachian Air has performed well logistically, boasting a “nearly 100 percent operational reliability for all flights which were scheduled to operate.” The airline also had an “aggressive promotional pricing” effort, equating to a 50 percent off discounted price for much of Appalachian Air’s operational existence, the statement said. The service, however, has struggled to get passengers in the seats. According to figures presented to the Pikeville-Pike County Airport Board by Schmidt, the service, since launching last fall, has seen ridership numbers well below initial projections for the service.
According to Tuesday’s statement, the service was “strongly supported by the business community, the local state legislative delegation, (Gov. Steve Beshear) and members of Kentucky’s congressional delegation. Job loss in the coal industry, the statement said, had “a huge impact” in the local economy.
“… The decline in the economy made it very difficult to get enough passengers on board to get to a sustainable, or even break even position,” Schmidt said in the statement.
Blackburn echoed Schmidt’s statements about support for the initiative, saying that state and federal support helped attract commercial air service to Pikeville. He added, however, that without a significant economic recovery, there will likely not be a similar effort in the future.
“We’re fortunate that Pikeville has been very prosperous, but we also recognize that some of the outlying areas have not been as fortunate,” Blackburn said. “I’ll never say ’never,’ that’s just not the type of person I am. But, speaking realistically, unless there is some type of study and data to show a significant economic recovery in our area, I would personally be surprised to see another provider view this market as viable for a similar service.”
The statement said passengers who have booked flights on Appalachian Air for July or later will be contacted directly by Public Charters, Inc. concerning their tickets. The statement also said ceasing Appalachian Air’s operations is the “fiscally responsible step” in consideration of the minimum revenue guarantee which was established for the service using federal funds. Any unused funds, the statement said, will be allowed to be returned to the grant providers.
Blackburn said Public Charters, one of the companies which handled the operations of Appalachian Air, remains under contract for service to the Pikeville-Pike County Airport, and he is in discussions with the company regarding the date on which the airline’s operations will cease. He said he hopes the end date will come sooner, rather than later.
“In my opinion, I hope we can stop as soon as possible,” Blackburn said. “With the revenue subsidy payments still being made, it would seem to me to be the most fiscally responsible step to go ahead and stop the service as soon as possible and put that money back in the hands of the federal government, which could then take it and invest it in a viable project somewhere else.
“Appalachian Air has suffered from the tough economy, like a lot of other businesses have,” Blackburn said. “We were able to get it off the ground without the use of any local tax base or local dollars, but it’s ultimately another casualty of the tough times we live in now and the ‘War on Coal,’ and while it’s disappointing that it is coming to an end, it’s the fiscally responsible and reasonable thing to do.”
By Chris Anderson
Appalachian News-Express
