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Elko Council approves one-year SkyWest service agreement, citing federal grant support
Summary
The Elko City Council approved a 12-month transportation agreement with SkyWest Airlines to support a midday flight under a U.S. DOT Small Community Air Service Development grant; the agreement includes a maximum city liability of $994,934 and aims to lower MRG costs as ridership grows.
Elko City Council voted to approve a 12-month transportation service agreement with SkyWest Airlines covering Jan. 1–Dec. 31, 2026, a contract the city said is necessary to qualify for Department of Transportation reimbursement under a Small Community Air Service Development Program (SCASDP) grant.
Mayor Irie Skinner and city staff told the council the SCASDP grant will reimburse roughly 40% of the flight cost and that local partner Flight Alliance of Northeastern Nevada (FAN) will provide funds to help cover the city’s 60% match. Staff set the contract’s maximum liability at $994,934 for the year.
Ted Christensen, SkyWest’s manager of route planning, told the council the carrier has seen improving load factors since the pandemic and described Elko as a community that “needs” consistent air connections for health care, family travel and economic development. Bill Tomcich, an air-service consultant working with the city, said newer regional aircraft and rising load factors have helped lower the cost of the market-revenue guarantees (MRGs) that subsidize small-community flights.
City staff said the new agreement follows several years of MRG support and noted that costs for the “return overnight” contract have fallen—from roughly $1.2 million in the first full year to about $760,000 for the year ending 2025—largely because of improved passenger demand and aircraft right-sizing. Council members praised SkyWest and local partners for their collaboration and approved the agreement by voice vote.
The council directed staff to continue marketing the midday flight to grow ridership and to pursue future options that could eliminate the need for MRG subsidies. The city said the DOT grant reimbursement and local partnership funding will reduce the net cost to Elko for the 12-month period.
