Willard seeks funds for minimum revenue guarantee


Feb. 2—Here’s a map of single-copy locations.

SAVOY — Willard Airport is looking for the community’s help with its efforts to attract air service to more destinations.

The University of Illinois is offering a first-come, first-served minimum revenue guarantee of $500,000 for service to any airport in Florida, Arizona, or to Las Vegas, Willard officials said.

However, the airport doesn’t want to stop there. Executive Director Tim Bannon said Willard is hoping to raise a community match of $500,000 so that it can offer a total minimum revenue guarantee of at least $1 million for one route.

Bannon said airlines take on a lot of risk when they enter a new market, and the funding would underwrite this risk.

“You’re not really in the game till you get a million,” he said. “The airlines are expecting a million for pretty much any route at this point in time.”

The minimum revenue guarantee is part of an updated incentive policy that went into effect Jan. 24.

“Under the MRG agreement, the University of Illinois and the airline will agree on a minimum revenue threshold that the airline is guaranteed to earn on the new route,” the policy states. “If the airline fails to reach the revenue threshold, the University of Illinois will pay the difference between the guaranteed amount and the actual revenue earned by the airline, up to a maximum of $500,000.”

The dollars provided by the UI are one-time funding.

Bannon also noted that the airport still has a minimum revenue guarantee of a little over $1.9 million available for carriers providing new service to Washington, D.C. This was provided by a Small Community Air Service Development Grant from the Department of Transportation, as well as dollars from the university and community.

Additionally, the airport will continue to offer other incentives for carriers to provide new service to airports that do not currently have nonstop flights to and from Willard.

These include reimbursement of up to $10,000 for startup costs to prepare facilities for new service and a 100 percent waiver of all terminal rent, landing fees, jet-bridge fees, per-turn charges and apron parking fees for the first two years of service.

The airport has also allocated a total of $350,000 for marketing support, with the airport providing $100,000 for marketing during the first year of service and $75,000 during the second year.

Once the entire $350,000 has been spent, the marketing portion of the incentive policy will expire.

“The FAA regulates what the airport can offer as an airport entity alone,” Bannon explained. “So we can waive fees. We can offer a small amount of cash for startup fees. We can put marketing money on the table, but that’s pretty much the extent.”

The funding for a minimum revenue guarantee has to come from another source, he said.

With this in mind, the airport has begun discussions with community stakeholders and hopes to raise the $500,000 through a blend of public and private support. Bannon added that airlines like to see that there is “broad community support” for service.

He also noted that the UI has committed that its funds will be used first ahead of the community match, and any leftover community funds will be returned.

“This is a community initiative being led by the airport and by the airport’s stakeholders,” he said. “Having healthy, diversified air service is a big economic driver in any region. You go around the country and look at strong economies, generally, there’s a healthy, vibrant airport very close by.”

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