SitNews - Stories in the News - Ketchikan, Alaska


By Cynthia Grant


January 07, 2007
Sunday PM

So I have kept myself out of this Airporter business and let it play itself out. Well I cant do that anymore. Many of those that are saying that the Airporter was profitable may need to look at my math. According to the Ketchikan Daily news on Jan 4 there are about 12 to 17 thousand riders a year and until that meeting that was a cap on what the Airporter could charge for rider ship. Ok with that cap, I will attempt to give an estimate as to how I see the business and I will use the high end of 17,000 people.

They were allowed to charge 20 per person and that was the cap. So 20 times 17,000 equals 340,000 dollars. This would only be if there were no park and rides at @10 dollars a person
340,000 times 6 percent sales tax = 20,400
17,000 people times 5 dollars ferry fee equals 8500 dollars
Drivers were paid 22 a trip so 6 flights time 365 days a year is $ 48,180
During the summer there are a additional 2 flights so that is equal to approximately 40 flights times 22 is equal to $880
Commercial insurance for vehicles 15,000 a year liability and uninsured only
License and registration stuff is about 300 per vehicle times five vehicles
Payroll taxes are about half of the drivers pay = 24,090
Workman's comp I would guess to be around 15,000
Price of gas is over 3 dollars and every other day you must fill up so that is about $75 dollars so that equals 3 vehicles = 41,062.5 . Maintenance cost for five vehicles three vans two busses (busses are run during the summer) are approximately 2 hours a week at 75 an hour = 7800. 00. This doesn't include the fact that these are older vehicles that needing new parts.
I would personally add an additional 15000 a year as a just in case scenario.

That leaves $142,588 to pay the bookkeeper and other things that pop up. But that is only if there are 17,000 riders

I would be more apt to believe that about that the amount of rider ship is closer to 12,000 so by the time it is said and done your down about 100,000 dollars

Forty two thousand dollars a year is all fine and dandy if you own everything outright but with a new business owner that is almost impossible four years after taking over the business. This is why a supposedly profitable business has closed their doors. Please note that most of these numbers are what I came up, if I am wrong I apologize. It is without a doubt that the last couple of years everything has gone up. If a business is barely holding on and cant raise their prices due to the borough saying no, then they will fold.

Cynthia Grant
Ketchikan, AK

Received January 07, 2007 - Published January 07, 2006

About: "a maybe business owner who see both sides of the coin"


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Stories In The News
Ketchikan, Alaska