Sun Valley mayor invites Air Ketchum chief to discuss Horizon subsidy
By TRAVIS PURSER
Express Staff Writer
In response to recent accusations by Leonard McIntosh that the city of
Sun Valley helped put his company, Air Ketchum, out of business by illegally subsidizing
Horizon Air, the citys mayor has invited him to address his concerns at the next
city council meeting.
"Given your comments in the newspaper," Mayor Thomas
Praggastis wrote in a letter addressed to McIntosh on Oct. 11, "I believe it would be
appropriate if I, on behalf of the city, extend you an invitation to address the city
council on this Horizon Airlines matter."
In a telephone interview Tuesday, McIntosh said that he hadnt yet
received the letter, but that he had no interest in attending the meeting.
"Theyre just covering their butts," he said of the mayor and the council.
The matter began several weeks ago when the cities of Ketchum and Sun
Valley agreed to join Sun Valley Company and Elkhorn Resort in guaranteeing Horizon
against losses in its upcoming winter flights between Boise and Hailey.
Since then, there has been enough concern by Ketchum about the legality
of the subsidy that the city has withdrawn the offer. Sun Valley, however, has chosen to
funnel the money through the Ketchum/Sun Valley Chamber of Commerce.
On Sept. 30, when McIntosh announced that the move had forced Air
Ketchum to cease scheduled operations, he said, "Frankly, theyre just too
stupid to realize what they did," of the council members. And he accused them of
"laundering" the subsidies through the chamber of commerce.
In his letter, Praggastis said that the Sun Valley City Council did
raise the issue of whether the subsidy would effect Air Ketchum, and that the council
determined "that the markets to which [Air Ketchum] and Horizon were catering were
not substantially the same."
McIntosh disagreed, then added, "Anything I have to say, they
probably dont want to hear."
In a separate statement, Sun Valleys city attorney, Rand Peebles,
said that because the chamber of commerces mission is "to improve air and
ground transportation access for residents and visitors," the city increasing the
chambers budget should not be viewed as a "maneuver" to avoid an illegal
direct subsidy.
In response to that and other comments by Peebles, McIntosh said,
"Hes an attorney. I assume they pay for his advice. When they dont like
his advice, theyll hire somebody else."
Peebles said that he doesnt understand the "concept of
laundering as it pertains to this situation." He said the city is at this
point renewing its contract for services with the chamber of commerce and that "a
contract for services is not a subsidy."
Peebles said that he understands that the city is extending to McIntosh
an opportunity to address the city council with his concerns.
But McIntosh believes the issue is bigger than that.
"As far as Im concerned," he said, "the matter
really belongs to the electorate."