Rental Car Revenue Down at Cincinnati Airport
Delta's cutbacks in service resulted in 30.2 percent fewer flights and 6-percent drop in car rental at the airport.
Cincinnati/Northern Kentucky International Airport rental car revenue is down $3.5 million—nearly 6 percent—from a year ago, and that slide is pinching the budget of Northern Kentucky Tri-ED, which promotes economic development in the region, according to The Cincinnati Post.
Tri-ED gets 95 percent of its funding from a fee that is a percentage of car rental charges at the airport and other rental agencies in Boone, Campbell and Kenton counties.
Delta announced the reduction at the end of 2005, so Tri-ED anticipated less revenue from rental car fees when it drew up its fiscal 2007 budget that began last July. Dan Tobergte, president and CEO of Tri-ED, says revenue is projected to drop from $1.6 million a year in fees down to $1.3 million.
The smaller budget has resulted in cuts in Tri-ED’s marketing budget and other operations, causing concerns about Tri-ED’s ability to drive economic development in Northern Kentucky. With that in mind, Tobergte is looking for additional sources of income for Tri-ED, The Cincinnati Post reports.
The airport is also hurt by the drop in rental business because it collects 9 percent of car rental revenue as a concession fee. That fee makes up 4.6 percent of the airport's $112 million annual budget.
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