To paraphrase H. Ross Perot: "Did you hear that sucking sound?"
No, it's not the sound of an AeroMexico flight coming in or taking off to Mexico City from the Brownsville-South Padre Island International Airport. It's the sound of cars travelling to McAllen to take a direct flight on AeorMar.
No one is saying much about the cancellations of the AeroMexico flights after they stopped flying last week and the booking computerized machine says that the cancellations are "indefiniite."
A local businessman said he had to take his wife to the McAllen so she could board a direct flight to Mexico City after the AeroMexico flights were cancelled in Brownsville.
"Here we go again." he said. "How much did we spend subsidizing that airline?"
The coming of direct flights to Mexico City were heralded in Brownsville with much ballyhoo by incoming Mayor Tony Martinez during his first months in office. At the time, city officials hailed the coming of the airline and extended their generous incentives for the Mexican airline to provide the service.
The first flights started in July 2011 and AeroMexico promised to provide nonstop passenger service between Brownsville and Monterrey, Mexico, to fly at least through Sept. 18 in order to test the market. The airline announced that it would provide that service until September 2012 — plus add a Wednesday flight to its once-a-day Friday and Sunday flights. The airline had been courted by city officials after Fly Frontera – a charter service – was denied the incentives to establish service to Mexico City and northern Mexico.
All it took, said a cheerful article in the newspaper at the time, was candy money from the city to elicit AeroMexico's interest here.
The Greater Brownsville Incentives Corporation, based on a recommendation from the Brownsville Economic Development Council, voted to approve subsidies of up to $500,000 for a year to help AeroMexico get established. In addition, GBIC pledged $100,000 for marketing and promoting the Brownsville-to-Monterrey service on both sides of the border.
The hope, said BEDC’s Gilberto Salinas, is that heavy promotion on the front end will translate into robust ticket sales and therefore less dependency on subsidies. The amount of subsidies ultimately spent could be from “zero to $500,000,” he said. AeroMexico’s bookings have been very solid so far, Salinas said.
The airline was guranteed money, or rather, a guarantee of subsidies if flights didn’t reach a given “load factor” that ensures they’re profitable.
But now that the money is gone, so is AeroMexico. Brownsville has been very generous to industry giants like American and Continental airlines to come to Brownsville, though both carriers have been weaned as their Brownsville flights have become established.
In a newspaper report at the time, it was noted that GBIC’s incentives are funded by a quarter-cent city sales tax allocated to the organization, whose mission is primarily to grow Brownsville’s manufacturing and industrial sector. Salinas noted that GBIC and BEDC’s first major project, upon being formed in the early 1990s, was to bring air passenger service to the city, which had been without it since Braniff Airways folded in 1982. He said Continental Airlines service to Brownsville was the result of that effort.
“We were a city with an international airport with no service to anywhere,” Salinas said. “In the mid-’90s we finally got connectivity with Houston. It’s worked twice, and we’re pretty confident it’s going to work for the third time, but it’s on Brownsville. It goes hand in hand with what (Mayor Tony Martinez) has been pitching the last few weeks: Everybody in Brownsville should fly Brownsville. If we truly believe in Brownsville let’s go out there and make this airport the airport that it should be. The airport is a significant economic driver for this community and this region.
As usual, Salinas has been proven wrong once again.
Brownsville, he said, now provided nonstop service to three major hubs — Dallas, Houston and now Monterrey, and it was something to brag about, he said.
At the time, he said that Brownsville is the only city in South Texas, aside from San Antonio, offering nonstop service to Monterrey. The goal, he said, was to make sure AeroMexico and the other airlines make money and stay put. Salinas said the airport is a vital economic driver for the city and the region.
Also quoted in the article at the time was Wonder Boy Michael Jones, business development director for Brownsville South Padre Island International Airport. He credited his efforts after much heavy lifting and claimed that having AeroMexico greatly expands the airport’s “catchment area,” or the distance flyers will travel to use an airport. Jones said he’d been working on AeroMexico to come to Brownsville for some time.
“It took me six years to convince them to fly here,” he said. “Their initial fear was that it would hurt Matamoros. They’ve finally accepted that it’s two separate markets. We’re very proud that these six years of work have paid off.”
“It took me six years to convince them to fly here,” he said. “Their initial fear was that it would hurt Matamoros. They’ve finally accepted that it’s two separate markets. We’re very proud that these six years of work have paid off.”
Not anymore, Mikey. Once again, after the incentives are gone, they took the money and ran, or rather, flew away.
AeroMar, non the other hand, is scheduling flights beyond the McAllen-Mexico City route. The airline gained approval to fly scheduled service between McAllen and Saltillo, Coah.; Tampico, Tamps.; and Ciudad Victoria, Tamps., though there has been no indication as to whether the airline will move forward on any of those routes.
The DOT gave approval for Aeromar to fly from those Mexican cities and Harlingen and San Antonio, as well. The Mexico City-based carrier offers seasonal service between Mexico City and San Antonio, its only other international destination.
The DOT gave approval for Aeromar to fly from those Mexican cities and Harlingen and San Antonio, as well. The Mexico City-based carrier offers seasonal service between Mexico City and San Antonio, its only other international destination.
Martinez then publicly named commissioner Melissa Zamora as the person in charge of promotion. Zamora at the time was an advertising executive at Elite Promotions at time and a call to Elite Promotions identified her as being "in charge of the AeroMexico account."
Current directors of the firm deny Elite Promotions had the account.
Current directors of the firm deny Elite Promotions had the account.
10 comments:
Juan so another one bites the dust, so how much did they take? only $500K? thats not bad for 2 years of service. well its only taxpayers money, so as george lopez says why you crying?
You need to call Gilbert Salinas at BEDC to get your facts straight.
The GBIC didn't give the airline money upfront. It was structured on a pay-as-you-go basis and if they fell below a 63 percent load factor. The program was only for their first year of operation, and not the second year. To this date, none has been paid to them.
Aeromexico did invest about $100,000 or so in marketing for AeroMexico, the bulk of which was distributed between three local advertising agencies. Hence, the money was spent locally. Elite Promotions WAS NOT one of the agencies.
What kind of subsidies does McAllen offer?
Were there any negotiations to extend the subsidies here in Brownsville?
To what degree were the flights full-- were they making the load factor, or how close were they to it?
Economics 101... Never cut a deal that is one way. There must de give and take. This little deal says a lot about the irresponsible, incompetent manager and board of directors of BEDC. Duh.
The three advertising companies that worked with AeroMexico were Breeden and McCumber, Hollander and Millar and Velasquez and Associates. NOT Elite Promotions. Please correct your information. Elite Promotions is a small business and locally owned company that doesn't deserve this scrutiny.
There was Melissa Zamora, getting behind Aero Mexico....just to go against Fly Frontera. She chose a pedephile and a now bye bye Aero Mexico. Good Job Melissa. I bet Fly Frontera would still be here.....but nooooo.
Flying away with Brownsville's money.
like those refs say in the NFL, after further review, that plays stands, first down. yea
Gilbert Velasquez and Associates did not work on Aero Mexico Melissa. You need to quit making a smoke screen. You got subcontracted by the other two agencies directly. Elite Promotions is not a marketing agency. They sell pens and shirts. They are following the same steps as Ernie Hernandez. Melissa as a commissioner has learned how to bypass the RFQ process by quoting just under the amount to go out for bidding. They are called promotional items at 3 times more expensive at what anyone could get on line. You could buy bulk at .35 a pen and Elity Promotions sells the same pen to us at $1.60ea. That is how they get their share of the pie. They are just a bunch of ratas in my opinion. Melissa you are no different. It is rumored she is trying to do the same with the DA and the County still representing Elity Promotions.
Y robor y robar, thats the motto in brownsville, many elected officials at the city county bisd, we get elected and then they have money in our pockets. everyone knows that these elected seats are there for the taking and making some cash for personal useage, thats all folks, why do we think otherwise? Y robar y robar.
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