...to make the cut in the Kansas House Ways and Means committee. This is the subsidy to AirTrans to keep cheap flights out of Wichita. The Eagle had a big article on it. Rep. Kasha Kelley is quoted extensively. She is on the Ways and Means committee. The Senate will probably force restoration of some of the funds and the Governor had it in his budget as an economic stimulus to the Wichita region and the state.
This is one of those bitter pills in a way. Giving taxpayer funds or tax breaks to a major corporation just doesn't sit well, but the economic impact and stimulus that then benefits taxpayers makes it hard not to. Tax breaks/subsidies must be used to compete with other cities/states looking for the same economic benefit.
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Good. Why should we continue to give money away to business just to come to town? It's always been a mystery to me. When the money leaves so does the business. I bet the airline is making money off of this and laughing all the way to the bank.
The strategy was to make the city ofWichita competitive with other mid major cities. It's not just the airline for leisure travel.
Think this way. You have a potential billion dollar businesslooking for a new home.
They could move to Wichita, Memphis or to Seattle for example.
Then they consider how much it cost to travel from their location or to bring clients in.
Memphis and Seattle are comparable. Wichita is about 40%-50% higher in cost.
Don't you think that is a significant factor in locating a business.
Suppose they are trying to recruit professional employees. Those employees also realize vacation our any other personal travel reasons cost much more from the local airport.
So, the design was to negate the unfair cost structure that airlines assign to Wichita sp that prospective businesses might consider relocation. Also so that existing businesses might be able to compete on the global market without a notable handicap.
If you can fly from Oklahoma for less, or the airport in KC Mo, you are more likely to make other business decisions that reflect that convenience.
Since commerce in Wichita, Kansas impacts revenue for all of Kansas it is not only a cost but instead an investment that could have future benefits.
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