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Committee approves transatlantic incentive supplement, proposes $3 million annual cap
Summary
The committee approved advancing a proposed transatlantic air‑service incentive supplement that would cap incentives at $3 million per year, limit any single airline to $2 million per year, and make targeted third‑year funding conditional on specific routes meeting criteria.
The Indianapolis Airport Authority Finance and Audit Committee voted to advance a proposed transatlantic air‑service incentive supplement that staff will take to the full board for consideration in October.
Staff presented data showing strong early performance of the Aer Lingus Dublin flight and described a proposed supplement that would provide up to $3 million per year to attract new year‑round transatlantic routes, with no single airline eligible for more than $2 million per year. Staff said the proposed program would be capped at $3 million per year for two years and that a third year of support could be extended for specific routes that meet the authority’s criteria and FAA guidelines.
Staff described how incentive payouts are expected to be delivered primarily through fee waivers — landing fees, ticket counter and gate rentals — plus some marketing dollars. For 2025, staff estimated expected payouts of about $1,330,000, largely attributable to the existing Aer Lingus Dublin service. The presentation listed five prioritized European markets identified by staff research: Paris, London, Frankfurt, Amsterdam and Madrid.
Presenters said Aer Lingus has increased Dublin service from four flights weekly to a planned five flights next summer because of strong local demand; staff said the airport sees averages of about 90 passengers per Aer Lingus flight going directly to Dublin, up from roughly 25 before the nonstop began. Staff also cited a calculator-based estimate of more than $60 million in annual economic impact attributed to a year‑round transatlantic flight — a figure staff said multiple methods and airline estimates supported.
Staff told the committee they are also working with the Indy Chamber on a privately funded air service incentive fund and that they have received early commitments from private companies, the city and the state to participate in a community-wide funding effort. Staff said funding for the proposed supplement would be available through the authority’s funding plan and that excess investment income could help cover incremental costs.
Committee members asked about the degree to which the Dublin market performance was driven by a local corporate commitment and whether that pattern is replicable; staff responded that route targeting focuses on markets where business and leisure connectivity already exist and that airlines will not deploy aircraft without demonstrable passenger and economic links.
A motion to advance the transatlantic supplement was moved and seconded; the committee chair called the motion adopted on a voice vote.
