The Crested Butte News Serving the Gunnison Valley since 1999
“No frills, no funny business”
Alpine Express co-owner Stewart Johnson went before the Gunnison County Commissioners on Tuesday to request a fee reduction for the company’s county lease at the Gunnison-Crested Butte Regional Airport.
Alpine Express currently pays 9 percent of its revenues to lease a counter at the airport and to serve year-round transportation needs between the airport and Mt. Crested Butte. It’s an amount Johnson says Alpine Express can no longer absorb.
“There’s no frills, no funny business here. It’s not like I didn’t get my trip to Europe or didn’t get to buy my Hummer. I’m just trying to stay afloat,” Johnson said.
The fee is typically passed onto the guests as part of their transportation costs. But according to Johnson, Alpine Express needs to stay competitive with seasonal ground transportation providers. Crested Butte Shuttles and Crested Butte Specialties are not subject to the same fees as Alpine Express because they don’t lease counter space.
Add to that a decrease in airline seats from 48,000 to 35,000 over the last four years, a simultaneous increase in the fee percentage Alpine Express owes the county and the cost of replacing an aging fleet, and Johnson claims that Alpine Express cannot absorb further decreases in revenue. The company has even reduced driver pay.
“We are at the point where we’ve done nothing but put money into the business and need to find a way to make it profitable,” Johnson said.
Johnson proposed reducing the lease agreement from a 9 percent fee to 6 percent, allowing the company’s annual revenue to drive the lease agreement.
Airport manager John DeVore also appeared before the board. When asked by county commissioner Hap Channell if he supported Johnson’s proposed change, DeVore said, “I recommend some change because at the end of the season, I don’t want to see that Alpine Express can’t make it anymore.”
But according to county assistant finance director Ben Cowan, under Johnson’s proposal, Alpine Express would fail to meet the minimum payment of $38,000 stipulated in the lease—a figure the airport incorporates into its annual budget.
“I don’t see how we can change the minimum when that’s what we’ve budgeted,” said county commissioner Paula Swenson.
The group settled on leaving the minimum payment in place for the current fiscal year, coupled with a graduated fee percentage starting at 6 percent. For every increase in revenue of $100,000 over $650,000, that fee will increase by an additional 1 percent.
Before the board can officially amend the lease, Johnson must submit the change to the Colorado Public Utilities Commission for approval, a process that could take 45 to 60 days. If approved, the public should expect to see little change to transportation prices.
“My intent is for guest numbers to stay the same for next year,” said Johnson, who hopes to keep prices competitive with other ground transportation providers.
