Sunday, December 17, 2017

Cape Girardeau to see increased revenue from SkyWest flights

SkyWest Airlines is expected to pay the city of Cape Girardeau more than $426,000 over a two-year period, ending Nov. 30, 2019, city officials said.

That revenue figure is calculated on the basis of a new two-year agreement with the commuter airline, which the city council is expected to approve Monday.

SkyWest Airlines, which also does business as United Express, began offering round-trip flights from Cape Girardeau to Chicago on Dec. 1. SkyWest replaced Cape Air, which had provided flights to St. Louis.

The federal government subsidizes passenger service to and from the Cape Girardeau Regional Airport through the Essential Air Service program.

Airport manager Bruce Loy said SkyWest offers 12 weekly round trips, with half of the trips connecting through Quincy, Illinois.

Loy said Friday the new agreement is expected to generate nearly $235,000 more revenue than under the Cape Air contract.

Fuel sales will account for most of the revenue, Loy said.

The agreement and fees, retroactive to Dec. 1, show annual revenue of more than $213,000, Loy wrote in an agenda report to the city council.

Loy said fuel sales could total $171,000.

"That is an estimate," he said.

The remainder of the annual revenue includes $11,578 for terminal/office space rent, $11,100 in ramp/parking fees and $19,503 in landing fees, Loy said.

SkyWest is renting 804 square feet of space in the terminal for office and baggage operations, he said.

Mayor Harry Rediger welcomed the opportunity for the city to generate added revenue at the airport.

"I knew it was going to be an advantage," he said of landing SkyWest Airlines' service.

"It is all a good thing," he said of SkyWest flights.

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