The City Airport staff has been working closely with other community organizations to entice new and needed air service to Billings.  The Airport would like to apply for a Small Community Air Service Development Program (SCASDP) grant through the U.S. Department of Transportation (DOT), and subsequently accept and execute the grant if successful in securing funds through this competitive process.  Council approval is required to submit the application, accept the grant, and execute any grant certifications and assurances.

↵City Council may:

• Authorize submitting an SCASDP grant application and for the Mayor to execute any SCASDP grants, and grant certifications and assurances; or
• Disapprove submitting the SCASDP grant application, subsequently reducing the potential to secure enough funding to provide an adequate revenue guarantee for pursuing new airline service.

There would not be any negative financial impact to the City of Billings Logan International Airport other than the time commitment to administer the grant.  Local matches will come from private community funds.  The SCASDP grant request would be in the $600,000 to $700,000 range, but the final amount will be based on how the DOT allocates the total available grant funds.

Recently, the City's Airport staff in conjunction with members from the Billings Chamber of Commerce Air Service Committee, the staff of Big Sky Economic Development (BSED), and Board members and staff of the Tourism Business Improvement District (TBID), have all been working closely together to entice new and needed air service to Billings.  One of the necessary requirements needed to be successful when working to enhance local air service is the ability to offer a revenue guarantee to the airline being courted.  The revenue guarantee provides the airline the ability to consider the new market (Billings) without the fiscal worry of startup costs, marketing, and immediately making a profit in a new market with entrenched competitors.  Typically, the revenue guarantee is funding raised or pledged by the local business community.  Additionally, smaller airports can also apply to the DOT for a SCASDP grant to supplement the dollars already pledged by the Community, thereby allowing for a more robust revenue guarantee offer to the airline being pursued.

New air service can significantly impact a community for the better.  New direct flights into new markets provide a new opportunity for local businesses to expand into the new destination market or provide better connections to other cities where the business traveler desires to go. It also provides new leisure market opportunities, as travelers go and explore new destinations or benefit from better connections to other leisure markets.  New direct service also entices travel from that new destination, bringing new travelers to our community that may not have come without that direct service.  This benefits the local travel industry.  Since the Billings Logan International Airport is a regional air transportation hub serving most of eastern Montana and northern Wyoming, the benefiting stakeholders extends well beyond the boundaries of the City of Billings.  Finally, most new service competition may initially entice lower ticket prices from current carriers, which benefits all local travelers.
 

Seeking additional funding to utilize for securing new air service falls in line with the City Council Goal of "A comprehensive, multi-modal transportation system that supports the Growth Policy to accommodate the future needs of Billings' residents and the business community."  Additional air service is also important in achieving the City Council Goal to "Further the economic vitality of Billings, and the greater region, by fostering community partnerships and maintaining a strong and efficient infrastructure."