The Hobbs City Commission voted to authorize two airport subsidy agreements: a memorandum of understanding with Lee County continuing the United Airlines minimum-revenue guarantee and a second MOU jointly funding a six‑month trial of JSX service between Hobbs and Dallas Love Field.
Amber Leija, assistant city attorney, presented the United Airlines MOU, which mirrors Lee County’s contribution so each jurisdiction would be prepared to provide up to $2,720,982, for an aggregate maximum of $5,441,964 under the contract. Jennifer Gratchem, the airport’s resident expert, said United’s minimum-revenue guarantee request is about $1.5 million less than last year because passenger load factors have been at all-time highs (roughly 70–75% monthly); the airport counted about 52,000 seats sold in the prior 11 months.
Why it matters: Commercial air service supports travel for oilfield firms, executives and contractors and is tied to hotel, dining and ground-transport economics in Hobbs and the region.
Key details:
- United MOU: The city’s maximum share is $2,720,982; actual payment will depend on loading and performance and may be lower.
- JSX trial: The commission approved a separate MOU (Resolution 76-36) with Lee County to provide a combined $1,000,000 ($500,000 each) to underwrite a six‑month trial of JSX service that would operate three round trips weekly between Hobbs and Dallas Love Field. JSX uses 30‑seat aircraft and a general‑aviation boarding process that bypasses TSA checkpoints.
- Fares and load factors: Staff said one‑way promotional fares will likely land in the $300–$350 range; at a theoretical 100% load at roughly $305 one‑way the carrier would cover its cost for the trial. The cities’ subsidy is intended to bridge startup risk while marketing and promotion build ridership.
Commissioners emphasized economic benefits for hotels and restaurants and for oilfield-related business travel. “If they fly Hobbs, it costs less money to keep United Airlines here,” airport staff said, noting free parking and shorter overall door‑to‑door travel times compared with driving to larger airports.
Action taken: Both MOUs were approved by roll-call votes. The commission instructed staff to continue partnership and marketing efforts with both carriers to build sustainable load factors.
Ending: Airport staff said JSX is already conducting marketing and the city will partner on promotion; the six‑month trial provides a near-term test of demand for a Dallas nonstop.