- Saddleback demolishes the Rangeley double to make room for its upcoming high speed quad.
- Debt-laden Ski Granby Ranch lays off all its employees and won’t issue refunds to guests with canceled vacations.
- The $2.2 trillion phase three stimulus package passed by Congress doesn’t include assistance specifically for ski areas but there is hope phase four might.
- Vail Resorts borrows more than $500 million from existing lines of credit in order to increase its cash position and maintain financial flexibility during the outbreak.
- While many Leitner-Poma staffers work from home, a skeleton crew continues production.
- Even in hard-hit Italy, one major lift customer plans to commence construction as soon as the immediate health danger has passed.
- Many Doppelmayr employees are also working from home and production continues in Wolfurt.
- Aspen Snowmass intends to complete all capital projects as planned this summer including the $10.8 million Big Burn chairlift.
- Vail Resorts CEO Rob Katz personally donates $2.5 million to mountain community charities and an employee assistance fund.
- Yet another lift project cancelled by Vail Resorts: replacement of Peachtree at Crested Butte this summer.
- NSAA estimates costs from early closings and lost pass sales will exceed $2 billion in the United States and forecasts capital spending will plunge 50 percent this year.
- Magic Mountain’s Geoff Hatheway offers a small ski area perspective on COVID-19.
- Coronavirus may impact the review timeline for Snow King Mountain’s proposed expansion and other projects on Forest Service lands.
- Katharina Schmitz officially takes the reigns of Doppelmayr USA from Mark Bee, who retired on March 31st.
- Boyne Resorts estimates $22 million in lost revenue as a result of this winter’s abrupt end.
- The Vietnamese developer behind both the world’s longest and tallest 3S gondolas plans another island-hopping 3S in the country’s north.
News
Vail Resorts Cancels All 2020 Lift Construction
Ski industry fallout from the global pandemic continues. Vail Resorts today announced the deferral of lift construction projects slated for Beaver Creek, Breckenridge, Keystone and Okemo due to a dramatic decline in revenue, which is expected to continue into fiscal year 2021. The suite of projects was first announced last December, the same month COVID-19 first appeared in Wuhan, China. While the virus spread across Asia, lift manufacturers were gearing up to build lifts that now won’t happen this year. Beaver Creek had planned a major expansion into McCoy Park and Okemo earmarked a new bubble six pack for Jackson Gore. Both Breckenridge and Keystone planned new chairlifts to increase uphill capacity in high traffic areas.
Vail said weeks ago coronavirus will cost the company between $180 and 200 million in March and April alone. Eliminating lift construction, terrain expansions and discretionary base area improvements will save the publicly-traded company $80 to 85 million while allowing the vast majority of maintenance capital projects to proceed. “The circumstances surrounding COVID-19 are unprecedented and the financial impact to our Company and the broader travel industry has been significant,” noted Rob Katz, Chief Executive Officer of Vail Resorts. “We are taking proactive steps to align our capital spending and return of capital approach to ensure that we remain positioned for long-term success.” Other steps revealed today include the furlough of nearly all year-round hourly employees, suspension of the company’s shareholder dividend, salary reductions for non-hourly employees and elimination of cash compensation for the CEO and board of directors.
The decision to postpone lifts is a blow to both major lift manufacturers but particularly Leitner-Poma, which like Vail itself, is Colorado-based. The firm had been awarded contracts to build three detachable chairlifts and move another this summer. Doppelmayr USA had planned to install the two machines at Beaver Creek.
As goes Vail, often go others. While I’m hopeful some lifts (and the jobs that come with them) are safe, more deferrals are possible. Rival Alterra Mountain Company planned to add only two lifts this year, both six place chairlifts at Mammoth Mountain. The privately-held group has not announced any changes to its capital plan thus far. In tough times, every company is understandably revisiting capital budgets and commitments, however.
The sudden onset of such deep uncertainty in this critical period of the lift production cycle is unprecedented. With the elimination of Vail Resorts projects for 2020, announced US and Canada complete new lifts stand at 24, fewer than Doppelmayr built by itself last year.
News Roundup: Down But Not Out
- The last North American ski area still operating, Lookout Pass, closes for the season.
- Leitner-Poma is hiring installers for projects at Arapahoe Basin, Arizona Snowbowl, Aspen Snowmass, Breckenridge, Keystone and Okemo.
- A group of 150 former members buys the Hermitage Club and its five chairlifts for the bargain price of $8.06 million.
- Arapahoe Basin lays off 430 seasonal employees and cuts the hours of year round staff.
- Children of the man who died on a Vail chairlift earlier this season retain a Denver law firm for possible litigation.
- In addition to virtually all ski resorts worldwide, coronavirus shuts down urban gondolas including La Paz’s Mi Teleférico, Medellín’s Metrocable, Santo Domingo’s Teleférico and London’s Emirates Air Line.
- New owners take over Great Divide and will reevaluate proposed lift additions through a master planning process.
- The newest gondola operation in Australia becomes insolvent and enters administration, partly a result of COVID-19.
- SAM gathers leaders from Alterra, Boyne, Vail and more to talk about the crisis. A common theme: capital budgets being reexamined.
- A Vancouver developer thinks about a gondola as part of a hillside housing development near Cypress Mountain.
- Lift construction grinds to a halt in New Zealand but carries on in Alaska.
- Ski Inc. and Ski Inc. 2020 author Chris Diamond shares an optimistic view of the crisis under the assumption it won’t last into next winter.
Ski Blandford Announces Closure
Citing continued losses and economic uncertainty, the owner of Ski Blandford is pulling the plug on one of the oldest ski areas in Massachusetts. Owner Jef Murdock, who also operates Ski Butternut, purchased the closed Blandford in 2017 and invested significant dollars to upgrade the mountain’s lift and snowmaking systems in advance of the 2018-19 season. Prior to that, the nonprofit Springfield Ski Club ran the area for 80 years. “Our goal was to keep the ski area operational and to grow the sport of skiing and riding,” reads a letter to passholders from Murdock and general manager Ronald Crozier. “However, after all of this hard work, we are still losing money. Unfortunately, Butternut cannot continue to support the losses we have experienced at Blandford. When you add present economic uncertainties to the mix, we are forced to make a very hard business decision. With much disappointment, we are announcing the closure of Ski Blandford.”
Ski Blandford featured three Hall chairlifts built in 1969, 1971 and 1978. Two of them recently received new control systems and other upgrades.
Timberline Mountain Rebirth to Include a Six Place Detachable
West Virginia’s first six passenger chairlift is coming to Timberline Mountain. Despite the coronavirus situation and surrounding uncertainty, Chip Perfect and his team today announced a $10+ million commitment to reopen the mountain by the end of this year. Timberline closed in the middle of the the 2018-19 season following years of financial challenges. Perfect purchased Timberline out of bankruptcy last November and his ownership group brings four decades of experience running Perfect North Slopes, Indiana. The West Virginia mountain is a hidden gem, featuring one of the highest natural snow totals and largest vertical rises in the mid-Atlantic.
The thousand vertical foot six pack will travel from base-to-summit with a ride time under six minutes. A Doppelmayr fixed grip quad will service lower mountain beginner runs, a terrain park and slopeside lodging. Other improvements will include a re-graded learning area with a conveyor carpet lift, extensive upgrades to the snowmaking system, a fully remodeled rental shop, consolidated food service facilities and an updated outdoor arrival area. “We look forward to participating in the economic development of Tucker County and we’re excited to announce the significant investment in Timberline Mountain’s infrastructure that will take place this summer,” said Perfect, who is both President of Perfect North Slopes and CEO of Timberline Mountain. “I believe skiers and snowboarders next season are going to really enjoy the new experience on this very special mountain.”
One positive of the mid-Atlantic’s low-snow winter was the ability for Perfect’s team to get to work quickly. The mountain’s three Borvig and Heron-Poma lifts are already gone with many of the chairs in the hands of loyal Timberline guests. All three new lifts are expected to be complete in time for the mountain’s grand re-opening.
News Roundup: In This Together
- Citing the pandemic, Hermitage Club founder Jim Barnes seeks to delay today’s auction of resort assets. A judge orders the auction to proceed at 10:00 am via telephone.
- A group intends to sue to stop the State of Alaska from awarding a new lease of public land to Arctic Valley Ski Area.
- For the first time since it opened, the Disney Skyliner gondola lines are completely devoid of cabins.
- Vail Resorts reveals Coronavirus will cost at least $180 million and the company is reviewing preciously announced capital expenditures including six planned lifts.
- The Indy Pass will include at least 47 resorts for 2020-21.
- Though the Alaska cruise ship season is delayed until at least July 1st, Icy Strait Point still plans to welcome passengers aboard its new gondola system.
- The website is live for Saddleback 2.0.
- Timberline Mountain now plans to unveil its reopening lift plans early next week.
- Construction continues on New Zealand’s first D-Line and a three station gondola at Thredbo, Australia.
- One of Colorado’s Senators asks the Forest Service to waive remaining 2020 rent payments for 122 ski areas located on National Forest lands.
- Skyline Investments, owner of two ski resorts and many other hospitality businesses, reports record revenue but warns Coronavirus will have significant impacts including the possible closure of resorts through summer.
- Skytrac is the low bidder for all three quads proposed for Gore and Whiteface Mountains.
Coronavirus Shutters Vail Resorts, All of Alterra and Many More
North America’s ski industry is following in the unfortunate footsteps of its counterparts in Asia and Europe, forced to end winter operations early to help prevent the spread of the novel coronavirus. Among the first to pull the plug the past two days were Berkshire East, Jay Peak, Taos and Nub’s Nob.
What started as a trickle became a deluge Saturday. In Colorado, Governor Jared Polis issued an executive order compelling all resorts to close following outbreaks in Eagle, Pitkin, and Summit counties. Even before the order, the continent’s two largest resort companies almost simultaneously announced complete shutdowns effective tomorrow. The 37 Vail facilities will remain closed until at least March 22nd and will continue to pay scheduled employees. Many independent mountains are staying open for now.
This is uncharted territory but I’m certain the ski business will be okay. Unlike other industries, we are used to doing this between seasons, albeit under very different circumstances. The United States government has promised help to small and mid-sized businesses along with hourly employees who are missing work and pay. Canada and governments around the world will likely do the same. Hopefully many full time, year rounders can keep working and get important maintenance done.
Normally March on this blog features announcement after announcement of exciting new projects from lift manufacturers and their customers. At this point, already formalized projects are pacing about the same as last year and none have been publicly canceled. Hopefully production can continue and this mess abates in time for construction to get going as snow melts. There are many unknowns, however.
Those of you on Instagram know I’m in one of the world’s most amazing places right now: Alaska. Operations at resorts were normal across the board the past few days and the weather was perfect in a state with only one confirmed case of COVID-19. Tomorrow I will attempt to fly home and reassess. As of this writing, Jackson Hole intends to stay open and I will be in on Monday if there is work to go to.
With so many resorts shut down and the global economy struggling, there may not be much lift news to report for awhile. When there is, I’ll write, and will get back to exploring as soon as I can.
News Roundup: Viral
- The Mountain Collective adds four awesome resorts for 2020-21: Chamonix, Grand Targhee, Panorama and Sugarloaf.
- Kicking Horse celebrates 20 years of operation on the site of the former Whitetooth Ski Area.
- Sun Valley’s Cold Springs double is about to end a 50 year run but will live on at a resort in California.
- Arizona Snowbowl’s Agassiz reopens for one last hurrah after being down since January 18th with a gear issue.
- Hundreds of ski resorts in Austria, Italy and Switzerland are forced to close for the season due to coronavirus.
- Berkshire East, Catamount, Middlebury Snow Bowl and Mt. Abram become the first US ski resorts to shut down due to the virus.
- Belleayre, Gore, Whiteface and the Lake Placid Olympic Complex close gondolas for the season for the same reason. Snowbird’s tram is shut down until further notice. Aspen Snowmass will no longer load unrelated parties in the same gondola cabins.
- Indiana Beach, one of only four venues with an aerial lift in the Hoosier State, closes permanently.
- The two year old LST Ropeways detachable in France shuts down indefinitely again. Instead of the LST design, MND America will offer Bartholet detachables in the United States.
- Vail Resorts reports financial results: skier visits are down 5.3 percent percent this season through March 1st but lift revenue is up 0.8 percent. On a conference call, CEO Rob Katz addresses coronavirus, lift lines at Vail and possible future acquisitions.
- Timberline Mountain promises to make multiple big announcements at a media event Tuesday. All three existing lifts are in poor condition and being dismantled.
- Arctaris Impact Fund doesn’t expect to realize a profit on its Saddleback investment until it sells the resort in 7-10 years.
- An enterprising family is building the first Australian-designed and manufactured chairlift in 30 years for private use only.
- Alterra Mountain Company CEO Rusty Gregory will deliver a keynote address on Monday in Park City covering the rise of Alterra, industry consolidation and multi-resort pass products.
- For the second time in three weeks, a sudden stop on the Mont-Sainte-Anne gondola elicits an emergency response and the lift is once again closed indefinitely.
News Roundup: Sunshine
- The Summit at Snoqualmie shuts Hidden Valley for the season due to an “unusual mechanical problem.”
- Sugarloaf closes King Pine due to a sheave assembly issue.
- Dave Brownlie, former head of Whistler Blackcomb and current Revelstoke President, weighs in on the state of the British Columbia ski industry and his company’s plans for Grouse Mountain.
- The Colorado Sun interviews three Colorado resort pioneers about industry trends and challenges.
- As the gondola at Mont-Sainte-Anne reopens, the resort says an external power issue caused last month’s sudden stop. A lawsuit has been filed and the power company denies responsibility.
- Just the Leitner portion of Mexico City’s new urban gondola network will feature seven stations and 300 cabins.
- Experienced resort executives Andy and Jace Wirth may take over operations at Granby Ranch.
- Limited Ikon/Mountain Collective visits to Arapahoe Basin are 69 percent lower than unlimited Epic visits last year and the “experience is way up,” says Al Henceroth.
- Another informative podcast from Stuart Winchester features an executive from Mountain Creek and Big Snow talking about the next new lift and a possible Big Snow Miami.
- Smugglers’ Notch has no intentions of losing its independence or ditching its fleet of fixed grip double chairs.
- Whitefish will begin work in Hellroaring Basin this summer and move the current Hellroaring triple to a new alignment in 2021.
- Jay Peak expects multiple parties to submit offers in a second round of bidding this spring.
- The Epic Pass franchise keeps growing with added Northeast options and a new rewards program.
- Wyoming’s Sleeping Giant changes its mind on closing after this season, citing an outpouring of community support.
- Whaleback is closing early due to a lift problem.
- Gatlinburg, Tennessee already has five scenic lift rides but an outfit called Pigeon Forge Snow plans to build a sixth.
- A U.S. Department of Labor inspector finds 14 and 15 year old ski instructors riding chairlifts and lowering restraint bars constitutes “operating heavy machinery.”
- Tremblant will announce its next major investments on March 10th, a day we may hear from other Alterra resorts as well.
- Guests are responding well to a slate of recent improvements at Catamount.
- Cuchara is on track to reopen one of three remaining chairlifts next winter.
News Roundup: Season Pass Season
- The man who died on a Vail chairlift two weeks ago did not fall through a flipped up seat as initially believed.
- A key parcel between Deer Valley’s Snow Park and Silver Lake villages won’t include a gondola.
- The multi-stage gondola taking shape near Puerto Vallarta will feature angle stations and very tall towers in a tropical paradise.
- A ski area on Prince Edward Island closes due to lift problems.
- The Ascutney Outdoors model proves promising where a for-profit, high speed quad model failed.
- Arizona Snowbowl inches closer to reopening its summit lift.
- Alaska’s new ski area trying to get off the ground needs more money.
- The chairlift at Great Bear derails and gets rope evacuated.
- There was an evac at Swiss Valley the same day.
- Here are details on the upcoming Hermitage auction including removal deadlines, the proposed asset purchase agreement with Boyne and the original lift quote.
- Sugarloaf’s General Manager and VP of Mountain Operations join WSKI TV to break down Sugarloaf 2030 and plans for a D-Line lift.
- The Payette Lakes Ski Club begins fundraising to replace a 50 year old T-Bar.
- Woodward Park City visitation has been about as expected during the inaugural season.
- A child is injured in a fall from Northstar’s Vista Express.
- The City of Steamboat plans to sign with Doppelmayr for the new Barrows quad at Howelsen Hill.
- Wisconsin’s Christie Mountain is for sale.
- Inc. profiles two entrepreneurial owners pressing on independently at Wyoming’s two largest ski resorts.
- The Forest Service releases its Draft Environmental Assessment for Mission Ridge’s proposed expansion, which would include two two new quad chairs and two pulse gondolas.
- Jägerndorfer’s 2020 collection features the largest number of lift models ever.
- A man is critically injured in a fall from the Purgatory Village Express.
- Testing and analysis continues at Mont-Sainte-Anne. One of those injured last week tells his story.
- Two new products join the Ikon Pass lineup for 20/21. Stratton and Sugarbush will go unlimited while Aspen and Jackson Hole will be more restricted.
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