Airline Sets Sights On New Mexico -- But Still Can't Fly
Recently, Aero-News reported on the difficulty
Victorville, CA city leaders have had attracting steady commercial
air service to Southern California Logistics Airport
(VCV). That effort -- and the federal funds to go with it -- was
hampered further when the sole airline operating from that airport,
Sacramento-based Valley Air Express, stopped flying its one and
only plane from VCV to Las Vegas last fall.
When Valley Air Express left Victorville, it also appeared the
airline had left the stage completely -- but it now looks like the
airline merely set its sights on another airport, this one about
580 miles east.
According to the Victorville Daily Press, Valley Air Express
received a $592,000 grant to begin operations in New Mexico between
Alamogordo and Albuquerque last October -- right about the time
Valley Air Express exited Victorville, stage right,
The airline has yet to operate a single flight from the southern
New Mexico city, however.
"They apparently are having problems getting the FAA
certification to fly," said Alamogordo City Manager Pat
McCourt.
The Essential Air Subsidy grant is similar to the $400,000
annual grant Valley Air Express received for air service from
Victorville. The money is set aside by the DOT to encourage
commercial service from smaller cities often ignored by larger
airlines.
Alamogordo -- a city roughly half the size of Victorville -- has
been without commercial air service since regional carrier Rio
Grande Air folded in June 2004. The airline had operated routes to
several NM cities using a small fleet of Cessna Caravans.
Perhaps in the rush to reestablish air service, Alamogordo
officials apparently did not check too thoroughly into the state of
Valley Air's finances, however. DOT documents from September 2005
show Valley Air Express was operating with a deficit of $93,055. In
order to set up shop in Alamogordo, DoT officials required the
airline to show capital of $276,083.
Just before the end of last year, airline President Bill Delgado
sent documents to the Department of Transportation stating the
airline had capital of $277,000 -- or approximately three months
operating costs -- in cash. While that may clear the way for Valley
Air Express to eventually begin operations, DOT officials said it
could be months before the airline is allowed to begin flying from
Alamogordo.
McCourt was reportedly surprised when the Daily Press told him
about Valley Air's problems in Victorville.
"They did not indicate to us they had any troubles flying in
Victorville," he said, adding Valley Air Express has not operated a
single flight since being awarded the contract October 21.
If it sounds as though Valley Air Express may be bouncing from
one small city to the next, collecting large FAA subsidies, you're
not alone: the sentiment is also echoed by Dr. Steven Frates, a
senior fellow with the Rose Institute at Claremont McKenna
College.
"It is also not good public policy for Alamogordo officials to
just choose Valley Air without checking their prior history,"
Frates added.
Meanwhile, Victorville officials say they've learned their
lesson -- and are continuing with their plans to lure another
airline, or air taxi operator, to VCV.
"Maybe Valley Air was premature, maybe their business plan was
faulty," said Victorville Councilman Terry Caldwell. "We all make
mistakes and you learn as you go and we have learned some lessons
from this."