Business costs bite into transportation revenues
"We are seeing additional revenue with the number of passengers we carried over last year. The month of June had a 13 percent increase for Nantucket." - Wayne Lamson, SSA General Manager
BY MARY LANCASTER INDEPENDENT WRITER
The simple cost of doing business along with new and necessary expenses has affected the revenue generated by air and boat travel to the island.

At the airport, total revenue for the year ending June 30, 2006 came to $10.7 million compared to the June 30, 2007 total of $11.6 million. Fuel sales have increased approximately 13 percent over 2006 for the week of July 1 to July 8, 2007, but ramp and landing fees, the latter of which drops with fuel purchases, are off by about two percent, said Airport Manager Al Peterson. He added that jet fuel sales for that period are up 15 percent but aviation fuel sales for small craft are down 40 percent.

While catering revenue - the delivery of food to private planes- rose 30 percent during the first week of July 2007 compared to that same week in 2006, the airport's overall income has been affected by its restaurant being closed for six months while renovations have been underway. Peterson explained that it was the airport's responsibility to bring the former Hutch's restaurant into compliance with building, health and fire codes, and therefore the rent for the new tenant was waived during the renovations. The new restaurant, Alice's Restaurant, just received its certificate of occupany and is expected to begin operating this week. That triggers rent payments as well as additional airport income from a portion of food sales.

Peterson further noted that airport revenue has been affected by the necessity to lease a trailer for temporary ticket counters for JetBlue, Delta, Air Wisconsin, Piedmont Air and Continental because there was insufficient space in the terminal. The cost for the trailer is approximately $50,000, but Peterson said the funds will eventually be recouped through rent and landing fees paid by those companies. The temporary building will remain in use during construction of the new main terminal which begins in October, Peterson said.

Hy-Line co-owner Philip Scudder said because his family's boat company is private it does not have to reveal its revenue or costs, but said income this year from passengers traveling between Hyannis and Nantucket is about level with 2006.

Figures compiled by the Steamship Authority show that combined passenger revenue from the Martha's Vineyard and Nantucket routes is up 11.9 percent from January through June 2007 over the same period in 2006 for a total of $8 million. The combined revenue for autos is up 9.4 percent at $9.1 million for the period. Truck revenue is up 10.1 percent at $10.4 million.

"We are pretty much on budget with revenues. We are seeing additional revenue with the number of passengers we carried over last year," said SSA General Manager Wayne Lamson. "The month of June had a 13 percent increase for Nantucket."

Lamson said expected expenses for the boatline include work on the Nantucket terminal dock that is being postponed until the beginning of 2008 because the ferry slip on the terminal's north side will have to be closed for the project. Dolphin replacements will also wait until boat traffic slows after Christmas Stroll, said Lamson. Fuel cost increases have already been anticipated and included in the SSA budget so that is not a concern, Lamson said. He added that any unforeseen income received by the company is transferred to special purpose funds for project use.

"Costs are evening out between both routes, and with the new Martha's Vineyard ferry, The Island Home, we have had rate increases to offset that $32 million cost," said Lamson. "Right now Nantucket looks better budget-wise, but costs will

come up early next year." I