Intrastate air travel fund gets initial approval

BOISE — Efforts to create an “Air Travel Enhancement Program Fund” to help attract new commercial air service in Idaho earned a thumbs-up from the Senate Transportation Committee on Tuesday.

Senate Bill 1103 stems from the work of the interim Intrastate Commercial Air Service Committee, which reviewed options for establishing and improving intrastate commercial air service.

Sen. Dan Johnson, R-Lewiston, co-chaired the interim committee and sponsored SB 1103. The intent is to create a seed fund that Idaho communities can tap to help finance public-private partnerships.

“If an airline is going to establish a new route, there’s a lot of risk associated with that,” he said. “It takes a lot of capital, a lot of people, and there’s no guarantee (the flights) will be used.”

However, a community that wants air service could enter into a “minimum revenue guarantee” agreement with an airline. The agreement helps mitigate risk by ensuring that the company earns at least enough money to cover its costs. If actual ticket sales fall below that minimum amount, the community would make up the difference.

“Typically they would raise the money for that through contributions from private businesses, the airport itself, the city and county,” Johnson said. “They could also seek additional support from the state, through this new fund.”

He noted that SB 1103 only creates the fund; it doesn’t actually appropriate any money. If the legislation is approved, he said his intent would be to introduce a trailer bill requesting $1 million in state funding.

“This would send a message to the airlines that the state has a vested interest in having these airports operating and having folks traveling within the state,” Johnson said.

The University of Idaho, Idaho Chamber Alliance, Idaho Retailers Association and Idaho Lodging & Restaurant Association all testified in support of the bill.

“We think travel in Idaho will increase business and help with interstate and intrastate tourism,” said Pam Eaton, representing the retailers and lodging and restaurant associations. “This is a very good piece of legislation that gets us started down that road.”

The committee sent the bill to Senate floor with a favorable recommendation.

Sen. Carl Crabtree, R-Grangeville, was the only one to vote against the measure. He cited concerns about past disagreements on the Lewiston-Nez Perce County Airport Authority Board regarding management of the Lewiston airport.

“There have been years and years of conflicts between the city, county and the airport,” he said. “I’m concerned about putting money on a fire that’s smoldering; add cash and suddenly it’s a forest fire.”

Johnson acknowledged those past disagreements, but said the board is now working very hard to land new commercial routes.

“I’m very hopeful we’re beginning to speak with a single voice,” he said.

Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.