Senator Charles E. Schumer

FOR IMMEDIATE RELEASE: July 9, 2012

WITH FEDERAL INCENTIVES PACKAGE NOW IN PLACE, SCHUMER URGES MAJOR AIRLINES TO OPEN VITAL CONNECTIONS FROM ALBANY AIRPORT TO WEST COAST HUBS – “NERD BIRD” STILL NEEDED FOR BOOMING NANOTECH INDUSTRY

Schumer’s Plan Includes Cash Incentives Worth Over $1.5 Million for United or Southwest to Open New Service that Would Pay Huge Dividends for Carriers Down the Road

Capital Region Chambers of Commerce Have Identified Houston and Denver as Connector Hubs That Could Provide Boon to Nano and Capital Region Economy

Schumer: Now that Nano Has Landed, It’s Time for Takeoff from Albany to the West Coast

Today, U.S. Senator Charles E. Schumer urged United and Southwest Airlines to participate in a new federally-sponsored air service attraction program to start flights from Albany International Airport (ALB) to major hubs in Houston (IAH) and Denver (DEN). In separate letters to Southwest Airlines Chairman and CEO Gary Kelly and United Airlines CEO Jeffrey Smisek, Schumer highlighted over $1.5 million in revenue guarantees and other incentives for each airline should they choose to open the new service. These revenue guarantees include a $750,000 Small Community Air Service Development (SCASD) grant, which Schumer secured from the Department of Transportation (DOT) in September 2011 for Albany International Airport at the urging of the Capital Region Chambers of Commerce. Schumer pursued this grant in an effort to attract a new low-cost carrier and expand existing routes in the Capital Region to the West Coast for Capital Region industries like nanotechnology.

“A direct route that connects Albany and the hubs in Houston and Denver would be a win-win-win for the airlines, Albany’s booming high-tech industry and Capital Region travelers,” said Schumer. “I have highlighted incentives for the airlines valued at nearly $1.5 million that will help ensure this plan gets off the ground quickly and enjoys a smooth takeoff. Daily direct routes to these Hubs would set Southwest or United miles ahead of the competition in Upstate New York as they provide low-cost flights that will connect growing high-tech companies in the Capital Region with their established counterparts in Texas and the West Coast. With a new daily roundtrip route between Albany and one of these hubs, everyone – the airline, high-tech companies, tourists and small businesses – comes out a winner.”

Schumer noted that the airlines could receive cash as well as credits for landing fees and a locally sponsored advertising campaign to promote the new service. ALB has raised approximately $475,000 in Airport Rate and Charges credits and $300,000 in advertising promotions to attract low-cost airlines that will initiate a high-value route to one of these hubs. Schumer urged the airlines to take advantage of these generous incentives and take the negotiations to the highest level of the airlines.

The monetary incentives for investments in a new route to one of these West Coast hubs could help these airlines smoothly transition to service between ALB and the new destination. Schumer cited the growing demand from Albany businesses and leisure travelers for increased access to the West Coast as proof the new service could be a boon for the Airlines.

Schumer also cited the Capital Region’s recent growth as a high-tech hub as evidence that the new roundtrip service could become increasingly more profitable to Southwest or United as Albany businesses gained affordable access to high-tech hubs in Texas and California. As of today, it requires multiple connections for an Albany business traveler to reach the West Coast. Albany high-tech companies are beginning to grow and demand easier access to markets, clients, and business partners on the West Coast. One such company, GlobalFoundries, will soon bring the world’s largest and most advanced semiconductor chip fabrication plant on line in Malta, NY that will employ about 1,300 people. Schumer notes that companies like GlobalFoundries, IBM and institutions such as SEMATECH and the College of Nanoscale Science and Engineering (CNSE) have existing relationships with Silicon Valley and Austin, Texas, and stand to benefit from increased affordable access to the region. SEMATECH’s research consortium produces half of the world’s computer chips and many of its members, including HP and Intel, are headquartered in Silicon Valley. GlobalFoundries, currently in the midst of building the largest and most advanced chip fabrication facility in the world in Malta, NY is headquartered in Milpitas, CA, and the CNSE’s groundbreaking research draws scientists and researchers from tech hot spots around the world, including Silicon Valley and Austin.

Schumer pitched his proposal to Southwest and United specifically because these two airlines have a unique and recent history of identifying and connecting booming business hubs across the United States. In his letter, Schumer lauded Southwest’s new roundtrip service between San Jose and Austin and United’s new shuttle between Washington, DC and Long Island, NY. Given the fact that the tech businesses in the Capital Region are gaining momentum, Schumer feels that United’s ALB-IAH and Southwest’s ALB-DEN service would continue this tradition for innovative, affordable service for up-and-coming regions and “tremendous foresight.”

A copy of Senator Schumer’s letters to Southwest Airlines Chairman and CEO Gary Kelly and United Airlines CEO Jeffrey Smisek appears below:

Dear Mr. Kelly,

I write to ask that Southwest initiate daily direct roundtrip air service between Albany International Airport (ALB) and Denver International Airport (DEN) in order to connect New York’s booming Tech Valley business community with its counterpart in Silicon Valley. In addition to linking Capital Region travelers to this important western hub, direct flights would open up an improved connection between New York’s “Tech Valley” and California’s “Silicon Valley.” This exciting prospect would further enhance the growing economic connection between the country’s two high tech regions and help spur even closer ties. I write to Southwest Airlines specifically because you have a history of recognizing and connecting high tech regions of the country, recently announcing roundtrip service between San Jose and Austin. With important hubs in both Albany and Denver, I am confident that more direct air service between Albany International Airport and Denver International Airport would uphold Southwest Airlines’ commitment to excellent service and show tremendous foresight.

Southwest could receive around $1.5 million in incentives in order to help smooth the transition to this new service to DEN. These incentives include at least $750,000 in federal cash incentives as well as credits for landing fees and a locally sponsored advertising campaign to promote the new service. ALB has raised approximately $475,000 in Airport Rate and Charges credits and $300,000 in advertising promotions to attract low-cost airlines that will initiate a high-value route to one of these Hubs.

Let me explain how “Tech Valley” and “Silicon Valley” are connected today. The Capital Region is home to SEMATECH, GlobalFoundries, and the College of Nanoscale Science and Engineering (CNSE). SEMATECH, a research consortium whose members produce 50 percent of world’s computer chips, has moved from Austin, Texas to Albany. Many of its members, such as HP and Intel, are headquartered in Silicon Valley.

Albany's economy is positioned to grow rapidly beginning in early 2012 when GLOBALFOUNDARIES commences full operation of a 1.3 million square foot semiconductor manufacturing facility just north of Albany. The new facility will spur economic activity as vendors build facilities and employees move into the region to supply and support GLOBALFOUNDARIES. Business travel between Albany and destinations such as Austin and the Silicon Valley is expected to increase dramatically once the facility is open. Albany International Airport is the primary airport in a catchment area that includes Albany and a large geographic region of Upstate New York. Albany is the state capital of New York, and the metropolitan statistical area (MSA) is the fourth largest MSA in New York with a population of 857,592 residents .

IBM, of course, is based in New York. CNSE has the world’s only university-based 300mm and 450mm wafer research and development facility. CNSE’s Albany NanoTech complex hosts the world’s leading nanotechnology companies including IBM, SEMATECH, GlobalFoundries, Intel, Toshiba, ASML, Applied Materials, Tokyo Electron, and Novellus, all of which have facilities in Silicon Valley as well. These are just a few great examples of how Tech Valley and Silicon Valley are already tied together and they demonstrate the potential benefits to our local economy, as well as Southwest Airlines, if new flights between Albany and Denver were established.

This is an excellent time for you to consider daily direct roundtrip air service between Albany and the Denver hub. As Tech Valley grows in prominence, these flights ~~will~~ could become the new “Nerd Bird,” in much the same way that Austin to San Jose has been dubbed in the past. The future is very bright in both regions and this commitment would certainly make Southwest Airlines the go-to airline for America’s high tech industry.

Sincerely,

Charles E. Schumer

United States Senator

Dear Mr. Smisek,

I write to ask that United Airlines initiate daily direct roundtrip air service between Albany International Airport (ALB) and Houston Intercontinental Airport (IAH) in order to connect New York’s booming Tech Valley business community with its established counterpart in Texas. In addition to linking Capital Region travelers to this ripe southwestern tech market, direct flights would open up an improved connection between New York’s “Tech Valley” and California’s “Silicon Valley.” This exciting prospect would further enhance the growing economic connection between the country’s two high tech regions and help spur even closer ties. With important hubs in both Albany and Houston, I am confident that more direct air service between Albany International Airport and Houston Intercontinental Airport would uphold United Airlines’ commitment to excellent service and show tremendous foresight.

United Airlines could receive around $1.5 million in incentives in order to help smooth the transition to this new service to IAH. These incentives include at least $750,000 in federal cash incentives as well as credits for landing fees and a locally sponsored advertising campaign to promote the new service. ALB has raised approximately $475,000 in Airport Rate and Charges credits and $300,000 in advertising promotions to attract low-cost airlines that will initiate a high-value route to one of these Hubs.

Let me explain how “Tech Valley” and “Silicon Valley” are connected today. The Capital Region is home to SEMATECH, GlobalFoundries, and the College of Nanoscale Science and Engineering (CNSE).SEMATECH, a research consortium whose members produce 50 percent of world’s computer chips, has moved from Austin, Texas to Albany. Many of its members, such as HP and Intel, are headquartered in Silicon Valley.

IBM, of course, is based in New York. CNSE has the world’s only university-based 300mm and 450mm wafer research and development facility. CNSE’s Albany NanoTech complex hosts the world’s leading nanotechnology companies including IBM, SEMATECH, GlobalFoundries, Intel, Toshiba, ASML, Applied Materials, Tokyo Electron, and Novellus, all of which have facilities in Silicon Valley as well. These are just a few great examples of how Tech Valley and Silicon Valley are already tied together and they demonstrate the potential benefits to our local economy, as well as United Airlines, if new flights between Albany and Houston were established.

This is an excellent time for you to consider daily direct roundtrip air service between Albany and Houston. As Tech Valley grows in prominence, these flights could become the new “Nerd Bird.” The future is very bright in both regions and this commitment would certainly make United Airlines the go-to airline for America’s high tech industry.

Sincerely,

Charles E. Schumer

United States Senator

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