A small town and its university are paying American Airlines up to $4 million to keep flying there

[TexasTowelie]

Fort Worth-based American Airlines has inked a deal with the city of Stillwater, Okla., and Oklahoma State University that will pay the carrier up to $4 million over the next two years to keep daily flights.

“American is willing to continue such air service only if it is able to limit its economic risk by receiving a revenue guarantee,” an agreement between the airline, the city and the university said.

The deal comes as dozens of small communities across the country are facing the loss of air service from major carriers that no longer see a profit outside of major cities. American Airlines has cut service to nine airports in the U.S. since the beginning of the COVID-19 pandemic, including cities such as New Haven, Conn., and Joplin, Mo., in late 2021 when rules from the $60 billion in federal airline stimulus expired and left rural areas on their own to support air service.

Other even smaller cities were cut early in the pandemic and service hasn’t returned.

“Due to the severe impact of the COVID-19 pandemic on air travel across the nation, especially our community, American Airlines has requested financial support in order to continue air service throughout the recovery period of the pandemic,” Stillwater Regional Airport’s staff wrote in a presentation to Stillwater’s City Council. “Airlines are facing increased operational costs due to unusually high fuel prices and lower ridership.”

Read more: https://www.dallasnews.com/business/airlines/2022/02/14/a-small-town-and-its-university-are-paying-american-airlines-up-to-4-million-to-keep-flying-there/