RTA debates whether summer air expansion is a good idea

Talking big picture and impact on winter program

Will using a grant to expand summer air service into the valley hurt the winter air program? That question was the focus of a short August meeting of the Rural Transportation Authority. The RTA didn’t reach a conclusion, but more information will be gathered and the discussion will continue next month.
The RTA has applied for a $350,000 federal grant that would help pay for airline guarantees for expanded summer service into the Crested Butte-Gunnison airport. That grant would require a local match of up to $175,000 each year for two years. If the grant were to be awarded and accepted, the RTA’s idea is to contract either with United Airlines to bring in direct summer flights from Houston or with American Airlines from Dallas, or perhaps with U.S. Airways to fly direct from Phoenix.

RTA executive director Scott Truex told the board at the Friday, August 9 meeting that 190 letters of community support were submitted as part of the grant. No firm cost for the program with the airlines has been determined for any of the summer expansion proposals.
“The grant has been submitted and we had a lot of letters of support from the valley and we did get the letter we were hoping for from United,” he said citing the 190 letters that were included in the application. “We will hopefully hear if we get the grant sometime in the fall.”
But Crested Butte mayor and RTA board member Aaron Huckstep said the board should be looking at the effect on winter air service if the grant is accepted.
“What does this mean to the winter program?” he asked. “Is coming up with the matching funds going to take $175,000 out of the funds we use to support winter flights?”
“There will be $175,000 less to budget for winter but if the summer program is a success it won’t use all the money,” said Truex. “This is a seed we are planting to see how it might grow. The cost of the summer program in the second year depends on the success of the first year and how much of the guarantee we would have to pay.”
“Taking money out of winter is a concern of the Crested Butte council,” said Huckstep.
RTA airline consultant Kent Myers told the board that a similar summer program begun in Vail this year hasn’t met expectations. “The Vail program from their standpoint hasn’t performed to the level it needs to be,” Meyers said. “Some people are pleased with the results of a first-year program but Vail people are used to automatic success.”
“It just seems that summer sales tax in Crested Butte is setting records,” said Huckstep. “The big question is, should we be helping summer more at the expense of winter?”
“The grant gives us more options to consider,” responded Truex. “That’s why the board chose to make the application. There certainly has to be more discussion if we receive the grant. We don’t have to accept the money but we can look at the situation and options if we get the award.”
Board chairman Chris Morgan said the intent was to pursue part of the RTA mission statement. “This is an opportunity to expand summer air service,” he said. “People have asked us to look at summer. We have limited resources and 20 things we want to do. That’s the nature of government. But we want to explore options.”
“Part of our mission is year-round air service,” added RTA board member Paula Swenson.
“This grant has to be used for different air service than is currently provided,” explained Truex. “Part of the determination of whether or not it makes sense would be the contract with an airline. We haven’t seen anything yet. It made sense to explore the opportunity.”
“We are cautiously moving forward,” said Swenson. “There are still a lot of parts to look at.”
“My concern is that as we continue to move down this path, every step makes it harder to turn around and say no,” explained Huckstep. “We don’t know the impacts to winter yet. I’m not sure that going for it with just the purpose of obtaining grant money is a valid reason.”
Myers pointed out that many ski resorts are bulking up summer business, given climate and business concerns. “I have a client in California that has come to the conclusion that air service helps drive tax revenues. What difference does it make if it is summer or winter? There will be more people in town. What does it matter if the tax revenues are generated in different seasons?”
“From our point of view, any diversion from winter is a negative,” said Crested Butte Mountain Resort vice president Michael Kraatz. “That’s our selfish perspective.”
“We are having a banner summer but summer is nowhere near the numbers of winter for us,” added Mt. Crested Butte town manager Joe Fitzpatrick. “Summer is growing but winter is our main thrust.”
“We need to look at a larger picture as well,” said board member Jonathan Houck. “Would this be a benefit to Western State? Would it make it easier for students to fly in here? If we can keep growing summer opportunities, can we use that to bring those summer visitors back in the winter?”
“I agree there are positives,” said Huckstep. “I think the board has to have a broad discussion. What exactly are we really trying to accomplish and does this address our needs? Would CBMR be interested in helping to shore up a winter funding gap?”
Houck agreed there remained many open-ended questions but insisted it was wise to explore the opportunity provided with the grant. “As we create more capacity any time of the year it helps chip away at the question of how accessible Gunnison County is to the public. Looking at Phoenix, for example, a summer flight could parlay into a winter flight if it becomes successful.”
“Every seat that is reduced in the winter directly means less tax revenue coming to Mt. Crested Butte,” said Fitzpatrick. “There is a very real direct impact.”
Morgan, who is a Mt. Crested Butte town councilman, said if the conclusion reached by the board is that expanded summer service would result in fewer winter flights, he would be against it. “If this at all reduces winter air, I won’t support it at all,” he said. “I want to make that very clear right away.”
“We don’t have the necessary information in front of us to make a clear decision,” said Swenson. “We need a budget and projections before going down this path. Let’s get more information to have a real discussion on this next month.”
“We have a long way to go on this,” summarized Truex.