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RIAC has failed to post its passenger counts for March, yet it has released these numbers to Fitch Ratings. Why? In light of the 38 Studios disaster we need to be far more open about sharing information! Here is the latest from Fitch posted today:

The Negative Outlook reflects T.F. Green's elevated risk profile resulting from multi-year traffic declines since peak level in fiscal 2005, down an aggregate 32% to 1.952 million enplanements in fiscal 2011. Increased activity from low-fare carriers at Boston Logan Airport contributed to year-over-year traffic losses of 8.8%, 10.5% and 3.6% in fiscal years 2009, 2010 and 2011, respectively. The first nine months of fiscal 2012 (through March) have shown signs of stability, with a marginal 0.1% increase over the same period in fiscal 2011.

The instrument landing glitch could have a much larger impact than this Beacon story indicates. When EDC attempts to float the new RIAC $48 million in bonds this fall the passenger numbers need to be up. Look at what Fitch Ratings says about the new bond issue:

"Fitch notes that additional debt to support the capital program would likely elevate the airport's already above average debt load. In light of the tepid trends in airport traffic, a rating action may be considered should any future borrowing be viewed to create added pressure to the airport's leverage or cost profile."

Do you really think that the ratings agencies are going to be happy with the RIAC bond offering now that 38 Studios hit the wall?

From: Weather, failed systems cause Green flight diversions

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