McKinney seeks federal funding for commercial air service incentives

At a March 17 meeting, TIRZ No. 2 board members approved funding from its own budget to provide local match dollars and fund the program’s first year.

Looking back

Air service incentive programs are “widely used at U.S. airports across the country,” McKinney National Airport Director Ken Carley said during the March 17 meeting.

“Most airports have programs to support new routes [and] help to reduce the risk of establishing new routes,” he said. “They typically either take the form of waiving some of the operating fees for airlines or they have targeted marketing support.”

The program is designed to expand connectivity for North Texas passengers and strengthen the airport’s position in the region, Carley said. McKinney National Airport is expected to open a commercial service terminal this fall.

When it opens, it will be one of three airports in the Dallas-Fort Worth area that offers commercial service. Dallas Fort Worth International Airport and Dallas Love Field Airport both offer air service incentive programs, Carley said.

TIRZ No. 2 board members allocated $1.6 million in total for the program, which could launch as soon as June 1, according to Carley’s presentation. That money includes $1 million to support the program’s first year, $300,000 for general airport marketing and $300,000 in local match dollars.

“If we intend to start service in November—that’s what we’re working towards—we would propose an effective date of June so that airlines can start to market new routes,” Carley said.

How it works

The incentive program will target year-round and seasonal market destinations not previously offered within the last 12 months, according to Carley’s presentation.

“These would be first-come, first-serve routes,” he said. “One incentive per market so the first airline in to establish that market would be the only one eligible for the incentives.”

Eligible airlines would need to have a fully executed use and lease agreement with McKinney National Airport, Carley said. Officials are not proposing “waive any fees on the front end,” he said.

Incentives would be offered through reimbursements after routes have been operated for at least three consecutive months, according to his presentation.

“You have to run marketing on a route for at least three months to be eligible,” Carley said. “If an airline comes in and they try a route for two months and decide to pull it, they would not receive any reimbursements under this program.”