Getting air service off the ground
Several U.S. cities have used minimum-revenue guarantees to attract airlines
Sunday, October 7, 2012
Both Jefferson City and Cole County have approved contributions to the Columbia Regional Airport in hopes of landing a new airline in the area.
The contributions are part of Columbia’s push for a minimum revenue guarantee, which helps attract airlines to new markets by eliminating the risk of losing money for the first year or two.
In making the pitch to Jefferson City officials, Columbia Mayor Bob McDavid cited Manhattan, Kan., as an example of a successful revenue guarantee, with a majority of funds returned to contributors at the end of the agreement.
The Manhattan Regional Airport entered into ....