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Paris flight not meeting revenue target
Friday, March 12, 2010

Delta Air Lines nonstop Pittsburgh to Paris flight is not meeting its revenue targets, likely triggering subsidies from the Allegheny Conference on Community Development and state taxpayers this year.

In a report to the Allegheny County Airport Authority today, the conference said plummeting ticket prices resulting from the global economic crisis was the chief reason the flight, which started June 3, is not hitting its targets.

As a result, the conference anticipates that it and the state will have to pay the full $5 million subsidy in the first year negotiated as part of the deal with Delta to start the service.

The conference said the flight has sold 68 percent of available tickets through the first eight months, within the range of original forecasts and enough to meet revenue targets were it not for falling ticket prices.

The report said the conference used a one-way fare of $582 in calculating the financial forecast for the flight. However, the third quarter 2009 Pittsburgh to Paris fare was $413.

The conference and the state may have to pay a subsidy of up to $4 million next year if the flight's performance doesn't improve.

More details in tomorrow's Pittsburgh Post-Gazette.
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First published on March 12, 2010 at 12:32 pm