Skybus fallout affects rental contracts
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Posted on: May 16th, 2008 by Andrew Roberts
The bankruptcy of Skybus airlines is continuing to effect the local economy. One unanticipated result has been the drop in rental fees charged from Pease International Airport.
Kim Hopper, the airport manager explained: “The April 5, 2008, cessation of Skybus Airlines operations has resulted in no scheduled airline service at Portsmouth International Airport at Pease, which has resulted in virtually no rental car activity.”
As a result in the declining activity at the airport, Hooper recommended dropping fees to the level they were before Skybus began flying to the airport. Space rentals at the airport terminal and in the nearby parking lots for Budget and National/Alamo are likely to be affected by the decision.
Presently, the two rental agencies pay $19,100 a year for the space, which will drop to $7,640 annually.
Contracts between the car hire firms and the airport expire at the end of August this year and at that time, the car rental companies have the chance to renew their contract.
The Pease Development Authority (PDA) earned $396,000 in revenue from the car rental company contract during the ten months in which Skybus flew to the airport. If the car companies take up the PDA on the new contract terms, it stands to earn just $18,000 a year.
www.skybus.co.uk
