Wednesday, July 14, 1999
Casino Airlines cashes out
By ANNA L. DEROCHER
Staff Writer
Casino Airlines is no longer flying out of Abilene Regional
Airport.
The company made its decision about a month ago, officials
said. After a three-month stint in Abilene, it became the fifth
commuter airline to pack up and leave.
The airline offered low-priced one-way tickets to Dallas Love
Field, but lack of capital and equipment forced the company to
close shop.
Louis McPherson, Casino Airlines owner and a Knox City native,
said the airline didn’t succed in Abilene because it had
no city support.
“Abilene wasn’t really interested in us. We tried
to get with the Economic Development Committee to try to get started,
and they found no interest in us,” he said. “It was
OK for us to invest in Abilene, but the city of Abilene wasn’t
willing to invest in the city for more air service.”
Rick Crider, airport manager, said Casino Airlines came to
him in late February hoping to start the business as soon as possible.
The airport accommodated the airline, Crider said, giving them
counter space.
“They started having technical difficulties,” Crider
said. “They didn’t have enough equipment to serve the
markets they had. Once any airline starts canceling flights, it’s
tough to retain consumer confidence.”
Crider said the airline only served 37 passengers in March,
54 in April and 21 in May. The company’s airplanes had a
19 passenger capacity, Crider said.
“I think Casino recognized a market that is under served,”
Crider said. “They were trying to capture the people who
were driving to Dallas or Midland and catching Southwest Airlines.
They were trying to connect Southwest with Abilene. I think they
had the right idea, but starting a new airline is a tough business.
“They knew it would be a tough process to build ridership.
I really take my hat off to them for giving it a try.”
As far as receiving money from the Development Corporation
of Abilene, Crider said he didn’t think Casino Airlines ever
filed a formal request.
Tucker Bridwell, DCOA president, said the group has never made
incentives to airlines that start up in Abilene.
“The mortality rate to start up airlines in Abilene is
very high,” he said.
The main reason the DCOA has not used the half-cent economic
development tax money to benefit airlines is because of the nature
of their business.
“The airline business itself is pretty much a retail business,”
Bridwell said. “Now, Eagle Aviation Services Inc. is an employer
of 250 people, and they do repair and maintenance work on airplanes.
That’s an employer that is heavily sought after because it
creates so many jobs in the manufacturing and service arena, not
retail.”
Eagle Aviation, a subsidiary of American Airlines was given
$1.7 million to bring about 240 jobs to Abilene.
Marty Blubaugh, Abilene’s director of economic development,
said that from an economic development perspective many communities
around the United States have made a decision not to subsidize
airlines, and Abilene is one of those places.
He said the city is successful in working with airlines such
as American Eagle with nonfinancial-support projects where a significant
number of jobs are created.
“Some airlines will approach cities for subsidiaries of
their actual operation budget, such as payroll, supplies, etc.,
but history has shown us even when subsidies are involved, there
is no promise the airlines will actually stay in business,”
Blubaugh said.
He said investing in airlines is much different than other
businesses.
“An office building or manufacturer stays put in the community
regardless of the future, where as an airline can pick up and
leave at any time,” he said.
But McPherson thinks that with funding from the DCOA, Casino
Airlines would have survived in Abilene.
Bridwell said the DCOA did not fund Casino Airlines, but the
same was true for Casino competitors. If the right airline situation
came along — like regional jets — Bridwell said it is
possible the DCOA may look into funding the venture.
“I am sorry that Casino didn’t make it,” Bridwell
said. “All of us in Abilene wish we had more air service
than what we’ve got, and we were pulling for Casino. So,
we’re not happy they pulled out and didn’t make it (here).”
Instead, McPherson hopes to be operating out of Santa Maria,
Calif. in a week’s time. The city of Santa Maria is giving
Casino Airlines $700,000 to get their company up and running.
“If Abilene doesn’t wake up, they are going to have
a naked airport,” McPherson said. “Part of it is our
fault. We tried to do it with a little equipment. If we could
have done a better job of service, we could have won the people
over. We didn’t have the money to develop it.”
Other commuter airlines that have been in Abilene include Aspen
Mountain Air, Conquest Airlines, Dallas Express and Texas Airways.
Larger airlines that have flown out of Abilene are Atlantic Southeast
Airline, a Delta Airline connection; Chaparral, which later became
American Eagle; and Frontier.
McPherson said Casino Airlines left Abilene with all its bills
paid, including rent and landing fees.
If anyone has a Casino ticket, McPherson said the company will
refund money.
Those people should contact Casino Airlines at 1550 Airport
Drive, Shreveport, La. 71107 or by fax at (318) 424-0000.
Anna L. Derocher may be reached at (915) 676-6786 or derochera@abinews.com
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Abilene Reporter-News / Texnews / E.W. Scripps Publications
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