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Lynchburg airport’s new United/SkyWest service gains marketing push; EDA will subsidize invoices as needed up to a $2M backstop
Summary
Lynchburg Regional Airport began United/SkyWest service March 24. Airport director Cedric Simon reported early marketing metrics and said the route has initial load factors near 50%; the EDA agreed to pay subsidy invoices as submitted consistent with the subsidy agreement, with the authority having encumbered up to $2 million as a backstop.
Airport Director Cedric Simon told the Economic Development Authority on April 16 that United (operated by SkyWest) began service March 24 from Lynchburg to Chicago O'Hare, marking the first time in about 15 years the airport has had a second carrier.
Simon said the route is supported by a federal Small Community Air Service Development Grant that helps carriers enter a new market; the DOT grant award includes $600,000 federal support and requires destination‑specific marketing. The airport is responsible for a $20,000 destination marketing spend tied to the grant and continues broader annual airport marketing (about $100,000) aimed at supporting multiple destinations.
Simon reported preliminary digital marketing reach and engagement: 27,000 impressions in a targeted period (April 2–15) and over 150,000 impressions on Facebook/Instagram since the March launch. He described load factors so far for the new United service at roughly 50% while noting established American flights have averaged in the upper 70% range in recent months; he said an academic benchmark for a "strong" load factor is about 70%.
On finance, staff and the finance committee told members the authority has encumbered up to $2 million as a minimum revenue guarantee/backstop for the route. The finance committee recommended — and the authority approved — paying subsidy invoices as they are submitted and consistent with the subsidy agreement; the first invoice will cover the final six days of March and may be influenced by recent higher fuel costs. Staff said DOT funds are applied last (after local match) and any eligible shortfall would be invoiced quarterly to be reimbursed consistent with the grant and contract terms.
Board members discussed local marketing support and the role of nearby institutions and employers (for example, Liberty University and local colleges) in encouraging passengers to use the service. Staff agreed to circulate invoice detail to members when invoices are received.
