A pitch to the Regional Planning Commission in New Orleans this afternoon went well, says John Miller of M7 Capital, the investor group behind a plan to bring a low-cost airline to New Orleans that would serve as a regional hub, providing direct flights from every major city in Louisiana.
“We were very happy with the response from the Regional Planning Commission,” Miller says. “The objective today was to let the public know and the parishes know about the opportunity that exists here, and we were very pleased with the reaction.”
The project would entail an acquisition of low-cost carrier Frontier Airlines, which would relocate from Denver to New Orleans and operate from there as a hub airline. The state, through LED, signed a Memorandum of Understanding with the developers, agreeing to kick in $50 for every net new passenger the airline brings to New Orleans. That agreement was signed more than two years ago, and Miller says the city of New Orleans has not yet responded to the proposition.
Getting the city of New Orleans and the New Orleans Aviation Board to agree to the plan could be a challenge because of the competitive threat Frontier would pose to Southwest Airlines and other existing carriers that service New Orleans. Though Mayor Mitch Landrieu today says he supports new airline service, he adds his office is seeking more info on the deal to determine if it will provide a good return on investment.
“The City and Aviation Board would of course welcome additional airlines, including new low-cost carriers, to New Orleans,” reads a statement provided to Daily Report from New Orleans Mayor Mitch Landrieu’s director of communications. “We remain committed to making MSY a world-class airport, and we would be pleased to welcome a hub airline to the city. As we would do with any proposal that seeks taxpayer subsidy, we have requested information that is needed to determine that the project will deliver a strong return on investment for our citizens, that it is financially feasible and operationally viable, and that the potential reward outweighs the potential risks.”
You can check out a website detailing the plan here.
Editor’s note: This story has been updated since its original publication. An earlier version of this story did not include a comment from New Orleans Mayor Mitch Landrieu, which was given to Daily Report after deadline.
