Allegiant Air (G4, Las Vegas Harry Reid) has threatened to leave Phoenix Williams Gateway airport in retaliation for what it claims are unfair incentives being offered to Elite Airways (MNU, Portland International Jetport). Last week, Elite announced it would begin a 3x weekly CRJ700 service to San Diego International effective September 1.
According to the AZ Central newspaper, the airport's operator, the Phoenix-Mesa Gateway Airport Authority (PMGAA), awarded Elite a USD1.3 million incentive package that includes exemption from paying landing and terminal fees during the first six months, in return for starting flights to either San Diego or Salt Lake City.
However, Mesa's only scheduled operator, Allegiant, has reacted angrily to the announcement with reports it is now in talks with Phoenix's other airport, Phoenix Sky Harbor, to transfer its operations there.
"It's completely inappropriate," said Brian Davis, vice president of marketing for Allegiant. "We don't mind competition ... what we do mind is subsidized competition."
The LCC currently connects Mesa with 34 unique destinations located throughout the continental United States.
Local community leaders have expressed shock at Allegiant's plans to move claiming the incentive package was open to any operator that applied, not just Elite.
