Local Air Service Fund
All communities, large and small, are eager to regain seats lost during the pandemic years or add seat capacity at their hometown airport. Under FAA rules, airports cannot directly incentivize airlines; however, the community can. Communities can offer cash incentives, minimum revenue guarantees based on route performance and travel banks (local air service funds). Air Service Funds capitalize on the airline’s interest in business travelers. Instead of local businesses promising to use the new service, local businesses deposit funds into a fund that can only be used for purchasing tickets on the target airline. This has the effect of providing the new airline with local passengers regardless of the barriers to entry that may exist in the market. The effectiveness of these funds at influencing local passenger traffic in favor of the new airline is dependent on the number of local businesses participating in the travel bank program and the total dollars committed by participating companies. Air service funds are grassroots incentive programs that require a highly motivated business community for success.
Responding to this next question does not obligate your company to participate in a fund; only gauges interest and help EVV provide you more information.