New Airline Service on the Horizon

Monday, January 07, 2008 07:24 PM

Prince George, B.C. - Initiatives Prince George has been given assurance the City will back up a guarantee of a maximum $400 thousand dollars (US) if IPG is successful in landing Horizon Air.

The airline out of Seattle, would provide daily service to Seattle, a move that could help open up a tourism corridor, as well as provide some competition when it comes to fares. Horizon is known to have very competitive rates on flights to other U.S. cities.

In its presentation to Prince George City Council, Initiatives Prince George says the airline could expand wages in the region and boost the GDP by $2 million.

The guarantee would only be paid if, after a year, the service is no longer profitable. The analysts say this flight would have to have at least 61% capacity in order to make good business sense. According to IPG's Kathy Scouten, only a portion would be paid if the annual pasenger load was 61% - 67%, no payout if it was greater than 67% and full payout if it is less than 61%.

Council gave the idea unanimous support. "This is another tool to support the Airport" says Councilor Don Zurowski. Councilor Brian Skakun said the economic benefits far outweigh the risk "It should also help with competition on air fares" added Skakun. Mayor Colin Kinsley is also a vocal supporter saying this kind of flight will ensure we keep our customs agents and international status at the Prince George Airport.

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