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Safford approves contract with Grand Canyon Airlines, authorizes up to $961,000 contingency funding
Summary
Council approved an agreement with Grand Canyon Scenic Airlines for scheduled Safford–Phoenix service and authorized contingency spending of $961,000 (staff said $800,000 is a federal grant and $100,000 from FMI) plus a monthly revenue guarantee not to exceed $172,800 to support the launch.
City airport staff recommended and the Safford City Council approved a contract with Grand Canyon Scenic Airlines to provide scheduled passenger service between Safford and Phoenix, and authorized up to $961,000 in contingency funding to support launch costs and staff changes.
The airport presentation described two daily flights on nine‑seat Cessna Caravan aircraft and a monthly revenue guarantee (MRG) not to exceed $172,800. Staff explained the MRG will be reduced by actual ticket revenue collected and is intended to allow reasonable ticket pricing while the route ramps up.
Staff said the project relies heavily on outside funding: $800,000 was awarded through the U.S. DOT Small Community Air Service Development Program (SCASDP) and $100,000 came from the local mining firm FMI; staff said those sources make up most of the $900,000 of non‑city support cited during the presentation. The airport requested $961,000 in contingency from the general fund to cover the remainder of costs and staffing reclassification to operate service seven days a week.
Council approved the contract and the related contingency expenditure and discussed a planned service start date of Jan. 6.
Why it matters: The agreement brings scheduled air service to Safford for the first time in recent years and carries material near‑term costs and staffing implications for the airport. The city will guarantee revenue to stabilize initial operations while relying on federal and private grants.
Next steps: Airport staff will implement the contract, hire/reclassify positions as described and begin service preparations for the announced start date.
