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Williston approves $2.7 million SkyWest revenue guarantee and raises airport parking rates

Board of City Commissioners · December 10, 2024
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Summary

The board approved a $2.7 million minimum revenue guarantee for SkyWest to continue Delta service in 2025 and authorized a parking rate increase at XWA from $10 to $11 per day effective Jan. 1, 2025; Williams and McKenzie counties committed additional support.

The Board approved a $2.7 million minimum revenue guarantee on Dec. 10 to keep SkyWest operating Delta Air Lines service through 2025 and also approved a parking rate increase at Williston Basin International Airport (XWA).

Airport Director Anthony Dudas told the board SkyWest proposes to operate CRJ-550 aircraft in 2025; the change reduces available seats from 65 to 50 because of pilot-union contractual limits and creates a projected shortfall. Dudas said consultants estimate a direct and indirect economic impact of $2.7 million and reported that Williams County has committed up to $800,000 and McKenzie County up to $400,000 for the 2025 calendar year. The board voted 5-0 to approve the minimum revenue guarantee after a motion from Commissioner Tate Cymbaluk and a second from Commissioner Brad Bekkedahl.

Dudas also summarized a five-year parking management agreement with Republic Parking, noting a $500,000 capital commitment (about $182,000 remaining) and said parking rates will increase Jan. 1, 2025, from $10/day to $11/day with a $66 weekly maximum. The manager projected the rate adjustment will yield roughly $50,000 in additional annual revenue.

Commissioners expressed concern about the recurring shortfall and the sustainability of continued revenue guarantees, but the motion carried unanimously. The approved action keeps air service continuity and sets a new parking rate schedule that will take effect January 1.