You can throw money at it all you want, but that won't solve the "problem." There is limited service at TOL for a reason: there's no market for it. The article seemed to spend a great deal of time talking about advertising. The fact of the matter is, advertising isn't the issue--it's demand. A grant didn't work once before according to the article. How does the old adage about insanity go? Insanity is doing the same thing over and over and expecting different results. Take that money and develop a high-speed rail system through Ohio instead of wasting money on the 40 mph average Amtrak fiasco that nobody will use. The high speed rail would be a feasible means for Toledoans/Toledoites (what is the correct demonym?) to commute to areas where jobs actually exist and thrive on the benefits of a free market system instead of living from uncertainty to uncertainty hoping for more tax-payer funded grants that throw money at a problem in hopes of it going away. It's nothing more than a bribe for an airline to have service there and they'll essentially get paid to do nothing, a defacto stimulus. Guess what's going to happen when the grant money expires? The airline will pull out and wham-o...more unemployment. Just what Ohio needs.
I went to Grad School in Springfield, MO. SGF was a convenient airport; I flew in and out of there several times--and I paid for it, too! MCI, STL, and TUL were all exactly a 3 hour drive from Springfield and it was quite common practice for Springfieldians to make the trek to one of those airports as it was often considerably cheaper, despite the long drive to and from. Sounds like a similar situation with Toledans using DTW, sans the super-long commute. I say they're pretty lucky to have a major hub airport so nearby!
From your post I thought they were going to do all those things you listed, thankfully that's not the case!
I just looked at TOL on Flightaware, and I was shocked to see that it seems to only have CHQ and American Eagle services, and both go to O'Hare. "Ailing" is hardly the word for it. At this point, they may as well apply for EAS flights. How sad for Toledo.
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