Taos hopes for new airline service

Tom Sharpe | The New Mexican

5/15/2008 - 5/15/08

A new airline might soon start flying to Taos, but chances are slim it will resume its Santa Fe flights.

New Mexico Airlines flies 9-passenger, propeller-powered Cessna 208B Caravans between Albuquerque, Alamogordo, Ruidoso, Carlsbad, Hobbs; El Paso, Texas, and Midland, Texas.

The company, formed last summer, began flying between Albuquerque and Santa Fe in September, but ceased that route in late December after the city of Santa Fe declined to provide incentives.

New Mexico Airlines' parent company, Pacific Wings of Hawaii, says the Santa Fe flights were suspended because the city has denied it the incentives provided American Eagle and Delta Connection — free use of terminal space, counter space and landing fee waivers.

"The city appears to be taking the position that incentives are available only to interstate — as opposed to intrastate — carriers; however, the majority of passengers traveling on New Mexico Airlines to and from Santa Fe are making out of state connections on other airlines via Albuquerque," says the company's Web site. "New Mexico Airlines has asked the FAA to review the situation."

However, Santa Fe Municipal Airport Manager Jim Montman said the main reason the city declined to extend the incentives to New Mexico Airlines is because there is no demand for the flights.

"When they were flying here, they were only actually showing up here about half the time because they had no passengers," he said. "They operated here for four months before they ever even asked the incentive question."

Montman said about $200,000 worth of city-owned equipment was made available to American Eagle and Delta Connection during their first year of operation. Neither airline currently flies into Santa Fe, but Delta says it might resume service later this year.

Greg Kahlstorf, chief executive officer for New Mexico Airlines, said he believes Santa Fe discriminated against his company by denying it incentives. Although Santa Fe isn't willing to work with him, he said, "Taos is chomping at the bit."

The Taos Town Council recently earmarked $100,000 from its next annual budget toward incentives for New Mexico Airlines. Taos Regional Airport Manager Mark Fratrick said the town will seek another $100,000 for incentives from the Aviation Division of the state Transportation Department.

Fratrick said New Mexico Airlines wants the funding for marketing, such as buying radio or print advertisements to publicize the airline. He said he is trying to arrange for Kahlstorf to appear before the Taos Town Council.

"The markets in Taos and Santa Fe are perfect for us," Kahlstorf said. "It really killed me to pull the plug on Santa Fe because our traffic numbers were going up month after month, and it was the kind of traffic you want ... tourists who buy art in the galleries, take advantage of the resorts. It's that premium traffic that you want to attract and keep there that's going to leave some money behind."

Ideally, Kahlstorf said, a regular flight from Albuquerque to Taos would stop in Santa Fe. He said he has tried to keep his company's flights affordable and is not seeking federal airline subsidies. A round trip between Albuquerque and Carlsbad, for example, costs $198 — $220.85 with taxes and fees.

Currently, Taos, like Santa Fe, has no regularly scheduled air service. Rio Grande Air ceased its flights into Taos about four years ago.

Contact Tom Sharpe at 986-3080 or tsharpe@sfnewmexican.com.