Sunday, July 6, 2008

SKI RESORTS OFFERING SUBSIDIES TO AIRLINES

Colorado ski resorts are offering to pay airlines more to bring out-of-state skiers to town this winter. Nonstop flights to the mountains from cities like New York are so important to many resorts that they guarantee a minimum revenue to airlines who offer the flights. If airlines sell enough seats, the resorts don't have to pay as much in subsidies. But with rising airfares and trimmed flight schedules making it tougher to travel, some resorts are raising their subsidy offers to airlines flying to mountain airports. Steamboat Ski Resort says it agreed to pay airlines up to 2.8 million dollars in subsidies, up 14 percent from last year. It expects actual costs to be 1.5 million to 2.5 million dollars, compared with 1.7 million dollars last season.