Morning Shots | July 1, 2010

Thune thinks airfares are too high. (Argus Leader) But is this the way to go about changing them? I don’t think so.

State corn yield could double in 20 years? (Capital Journal) Excellent. Now, lets stop subsidizing it.

Getting good stuff from the landfill. (KELO) All of those used diapers are good for something.

2 thoughts on “Morning Shots | July 1, 2010

  1. I actually am interested to hear your thoughts on the Sioux Falls airport ( I believe earlier you made a comment about Heuther and his hopes of expanding service etc ).

    Do you think anything should be done to improve costs/service? If so, how would you recommend it is approached? (e.g. subsidies in the form of tax breaks, e.g. govt funded expansion to increase competition, e.g. event/convention facilities that make SF a destination, e.g. do nothing it’s fine). I know there’s a large “we’re not Omaha and we’d like to keep it that way” contingent in Sioux Falls, but it’s hard to read what you think the correct approach would be.

    1. David,

      In brief, it comes down to me wanting to see people and businesses which are affected by the cost doing something without bringing government to bear (whether at the city, state or federal levels). Unfortunately, there is probably little that can be done at this time.

      Airlines are in business to be profitable. However, increasing regulation (as well as rising fuel and maintenance costs) make it very difficult for airlines to keep costs low for smaller airports such as Sioux Falls. I would be unsurprised to find that more profitable flights are already subsiding fares to/from Sioux Falls.

      Unless and until one is either able to substantially reduce expenses (more efficient aircraft, lower fuel costs, etc) or increase the number of passengers (which for us would be likely to occur with a substantial increase in population) then it will still continue to make sense for many to drive to Omaha or Minneapolis-St. Paul for their flights.

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