Business owners and government officials in the Wood River Valley need to learn the meaning of this acronym: MRG. It stands for Minimum Revenue Guarantees for airlines.
Why should anyone care about something that sounds like it should be part of a sea of fine print that no one reads? Because MRGs make or break air service.
Too many people take local commercial air service for granted. They shouldn't. The Wood River Valley is not a business hub for which major airlines vie for access. It's just the opposite.
Like other companies, airlines are in the business of making money. They don't make money if they don't sell a certain number of tickets to passengers.
The industry is so competitive in major markets and so risky in small ones (look at the number of airlines in or veering toward bankruptcy) that executives are loathe to begin flights to places where they risk losing money.
MRGs have been the solution. Every year, Sun Valley Resort antes up big chunks of money to cover losses of airlines on certain flights, mainly from distant cities. This is common practice for isolated mountain resorts. The Sun Valley-Ketchum Chamber of Commerce also has raised $130,000 for use when needed.
Raising money for MRGs is key to delivering paying customers to the valley—even with a new airport. All local businesses and government officials should begin to help develop methods better than bake sales to ensure that the valley remains in the bidding for good air service.
Otherwise, the valley risks kissing lots of valley businesses and healthy government budgets goodbye.
