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Horizon Discontinuing Prince George, B.C., Service
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9/10/2008 3:13 p.m.
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SEATTLE — In the face of high fuel prices and a slowing economy, Horizon Air today announced its decision to terminate service to Prince George, B.C., from Seattle effective Oct. 5, 2008.
"Continued high fuel prices paired with slowing economies in the U.S. and Canada are making it impossible for us to operate this route profitably," said Dan Russo, vice president of marketing and communications. "I would like to thank Initiatives Prince George, the Prince George Airport Authority, Tourism BC, Mayor Kinsley, the Prince George City Council and the Prince George business community for their efforts to help make this route a success."
Horizon began once-daily nonstop service to Prince George on May 1, 2008, with the 76-seat Bombardier Q400 after reaching a revenue guarantee agreement with Initiatives Prince George. Under the terms of the contract, the guarantee was to be paid to Horizon only if passenger loads didn't meet an agreed-upon minimum. Unfortunately, this agreement was reached just before fuel prices skyrocketed – resulting in an increase in airline fares that dampened demand – and the economy began to slow. Horizon has since taken several initiatives to reduce costs, including restructuring parts of its route system and transitioning to a single fleet of fuel-efficient Q400s.
Horizon's fleet serves 50 cities throughout Arizona, California, Oregon, Washington, Idaho, Montana, Nevada, Baja California Sur (Mexico), and British Columbia and Alberta (Canada). Together, Horizon Air and Alaska Airlines serve 95 cities and are subsidiaries of Alaska Air Group, Inc. (NYSE:ALK).
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