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Kingsport pledges $250,000 to regional effort to recruit airline service at Tri‑Cities Airport
Summary
The board approved a $250,000 contribution toward a regional minimum revenue guarantee to attract a new airline to Tri‑Cities Regional Airport, joining a regional fund that leaders said aims to raise $2 million by early April; board vote 6-0.
The Kingsport Board of Mayor and Aldermen approved a $250,000 contribution Feb. 18 to a regional effort to recruit additional airline service at Tri‑Cities Regional Airport.
City and regional leaders said the contribution is part of a broader campaign to assemble an estimated $2 million minimum revenue guarantee (MRG) commonly used to induce new routes. John Rose, who presented the proposal to the board, said the regional committee is working with local governments and private partners to reach the target and that several jurisdictions have scheduled votes in March; he said the latest possible partner vote he had been told of was April 1 and the regional deadline is April 7.
Rose said regional data shows substantial “leakage” of passengers: about 60% of local travelers, roughly 400,000 people, fly out of competing airports, and that Tri‑Cities currently has about 11% of its available seats served by low‑cost carriers versus a national average of roughly 36 percent. "The airline sees us as a growth market," Rose said.
Rose also said legal protections have been discussed: "Our attorney that's helping us on our side would be Joel Conkin. He's already reviewed that contract. And there is out clauses for both parties," Rose said, describing work to include clawback and other protections in any agreement.
City leaders said the resolution expresses the city's intent to create project accounts and to enter agreements needed to make the contribution. Vice Mayor Duncan moved approval; Alderman Baker seconded. The motion passed 6-0.
Board members asked about return on investment and the timeline for an airline announcement. Rose said the immediate goal is to secure the MRG and that an announcement and rollout would follow a signed contract; he cited tourist-spend estimates and the potential for carriers to add flights after initial success.
City officials said an air service committee of mayors and city managers has been formed to develop a funding formula and to keep partners at the table during negotiations. The city manager and mayor will be involved in reviewing any contract before the city executes an agreement, officials said.
