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Delta Airlines

The One that Got Away

Published: Tuesday, April 27, 2010

Updated: Tuesday, April 27, 2010 22:04

An e-mail is all it took to get the money off the runway.


On Feb. 27, 2009, Vice President of Administrative Affairs Burt Nordstrom sent an e-mail warning that HSU needed to fulfill its commitment to spend $51,613 that was left from a pledge the year before.


Thirty-two days later, $949.23 remained.


In 2008, more than 80 local businesses organized to lure Delta Airlines - the largest airline on the planet in terms of passenger traffic - to the Arcata-Eureka Airport.


The businesses, that formed the Humboldt County Initiative, generated $500,000 for a travel bank account. The account worked like a debit card for travel aboard Delta Airlines.
Of the $500,000, HSU pledged $75,000, all public money from the general fund.


HSU scrambled at the last minute to spend the public’s money, travel to more than 100 destinations and see its investment fail.


Carol Terry, associate vice president of business services, said President Rollin Richmond made the decision to pledge the amount. Although Terry is in charge of all business services, she was not asked to consult in the decision process for the amount, and she doesn’t question it. “It’s a realistic amount for the university,” she said. The idea was to establish an air carrier that would go directly to the East Coast and avoid the daily traffic jams at San Francisco International Airport and save money, she said.


On a first-come, first-serve basis, employees raced to get their free airfare.
In 32 days, HSU spent $50,930.


University Spokesman Paul Mann said the decision to pledge $75,000 was based on the school’s past travel patterns.


The school had a year and a half beginning in January 2008 to use the travel bank “debit card” but waited until the last minute to use it.


In 14 months only $23,120 was spent.


HSU had three months to either use, or lose the remainder. “We had a deadline,” said Terry. “We needed to use it because we didn’t want to waste the state’s money.”


Terry suspects that a lack of awareness caused the mad dash. Many employees were unaware they could fly with Delta for free and flew on Horizon and United Airlines, said Terry. “I probably should have reminded them more often.”


Employees traveled far and wide.


Some countries they visited were the West Indies, the Cote d’Ivoire (Ivory Coast) and Germany. The top three domestic destinations were San Diego, Las Vegas and Washington.


To collect information regarding destinations, travel budgets and recruitment budgets, The Lumberjack filed seven California Public Records Request.


Documents show that travel for recruiting is a common theme for HSU employees; the admissions office is one department that stands out.


In a time when funding, staff and programs are dwindling, money spent on travel for the admissions office is on the rise. In the past five years, spending on admissions travel has almost tripled.


With the documents regarding destinations, The Lumberjack created a database and map to determine how far HSU employees flew with the public funds. The map can be found online at thejackonline.org.


The arrival of Delta Airlines meant competition. Terry said that with Horizon and United Airlines also vying for business, ticket prices would be lower, and the school could save money. “We’re always looking for a good deal,” she said.


Greg Foster is the director of the Redwood Region Economic Development Commission. He said there was talk for years about providing local businesses with better air service.
But, two months ago, Delta pulled out indefinitely and halted all service.


“It is unfortunate that they are not coming back this summer,” said Foster. “I think that local businesses in the area travel a lot, so having Delta would benefit a lot of people.”


But Delta did not benefit when the community failed to fulfill its end of the contract.
The contract agreement between the Humboldt County Initiative and Delta Airlines required that a minimum of 70 percent of seats be filled by flights out of Arcata as well as those from Salt Lake City, Delta’s western hub.


Only 68 percent of the seats were filled.


Jacquelyn Hulsey, the Arcata-Eureka Airport manager, considers the economy a major factor.


“The economy took a dump, which we had no control over,” she said. Hulsey and Delta confirm that talks continue between both parties.


Foster is not as optimistic, but the Redwood Economic Development Commission will continue to track data in hope of bringing Delta back.


Delta Airlines pulled out but flew into the horizon with money that belonged to the community. It is unclear if the company will ever come back to Humboldt County.
Foster said, “I haven’t heard anybody say that this project was a waste of time. Delta offered an opportunity, and people took advantage of it.”

 

****In the past five years, spending on admissions travel alone has nearly tripled:

2005-06 - $36,397
2006-07 - $62,442
2007-08 - $65,734
2008-09 - $92,744
2009 - present - $75,211
 

*link to google maps: http://maps.google.com/maps/ms?hl=en&ie=UTF8&msa=0&msid=106505659326864047675.0004853f60aae320cbdf7&ll=5.336389,-4.026667&spn=0.16203,0.220413&z=12

 

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