Dear Chamber Members:

 

As 2001 soon draws to an end, I would like to take this opportunity to update you on plans for 2002 for Catalina Express.  As you are already aware, it has become increasingly difficult to analyze and forecast passenger needs and vessel scheduling in view of recent events. 

 

For example, this past year, the Queen Mary announced that it would raise the monthly parking rates to $75 per month and that our parking supply would be limited to 1200 spaces.  In response to this, we added departures from San Pedro to accommodate a long day trip for islanders needing to come overtown.  Unfortunately, the demand has not been strong enough to support the added 6:00 am from San Pedro or the 5:00 pm return to Avalon.  Beginning with the January schedule, we will discontinue these runs but continue daily service with increased service Friday through Sunday.

 

On the positive side, we are seeing relief with lower fuel costs and will adjust our fuel surcharge beginning January 1, 2002. The San Pedro and Long Beach surcharge will be totally eliminated.  The Dana Point fuel costs are more expensive and so the fuel surcharge will simply be reduced from $2.00 to $1.00 round trip.  (See press release) 

 

Even though fuel costs have decreased, the general cost of doing business continues to rise.   We anticipate that sometime before summer of 2002, we may have to implement a fare increase of about $.50 each way (representing an increase of approximately two or three percent).

 

2001 has been a challenging year for all of us; however, we are looking forward to a busy and successful 2002.