The “American Rescue Plan Act” was also called the “Covid-19 Stimulus Package” or the “American Rescue Plan.” (To paraphrase Shakespeare on a rose: a “boondoggle” by any other name smells just as foul.)
(p. B2) LINCOLN — Red Way, the startup airline that had been providing service from Lincoln to destinations such as Las Vegas and Orlando, is ceasing operations at the end of the month.
. . .
The Lancaster County Board issued a written statement Wednesday [Aug. 23, 2023], saying it “is deeply disappointed and troubled at this unexpected and sudden turn of events.”
The board said there are “many unanswered questions regarding the Red Way project, (and it) looks forward to receiving a full accounting of this situation as the Lincoln Airport Authority charts a new path forward to serve our community.”
Board member Matt Schulte lamented the $3 million in lost American Rescue Plan Act funds — $1.5 million each from Lancaster County and the City of Lincoln — but called the air travel experiment a chance worth taking.
“I personally voted for this project believing that the air service would develop long term service,” he said. “Unfortunately, it didn’t work. I hope this failed experiment does not have a negative impact on the ability to expand service to the city of Lincoln.”
. . .
Airport officials had seemed optimistic about the airline’s prospects, noting that it had sold 10,000 tickets in just its first two weeks of operation.
In fact, Red Way flew just over 13,000 total passengers in June and July.
But cracks had started to show recently.
Red Way announced in July that it was dropping seasonal flights to Atlanta, Austin and Minneapolis in early August, months earlier than planned, because of poor ticket sales. That news came just two days after the airline had announced new flights to Tampa and Phoenix over the winter months.
Nick Cusick, who resigned from the Airport Authority Board in July after serving more than 10 years, confirmed to the Lincoln Journal Star on Wednesday that Red Way had already burned through most of a $3 million incentive fund provided through ARPA dollars.
It used more than $900,000 in the first month and it withdrew even more in the second month, Cusick said.
For the full story, see:
(Note: ellipses, and bracketed date, added.)
(Note: the online version of the story was updated Sept. 30, 2023, and has the title “Lincoln’s Red Way ceasing operations less than 3 months after inaugural flight.”)