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The Regina Airport Authority wants some help from city council to put its money where its mouth is when it comes to bringing back a direct flight to a U.S. hub.
On Wednesday, the airport presented to the city’s executive committee, asking for a tax exemption to the tune of $311,000. But the airport won’t just take the cash and run; it’s promising to use that money to entice an airline to bring to Regina a direct flight to a U.S. hub city.
“We have reframed the discussion with council. It’s less about a handout; this is all about making sure that we invest that money wisely, with very specific metrics tied to that exemption,” James Bogusz, Regina Airport Authority CEO, explained Thursday.
If the airport gets the exemption, it has committed to being able to announce a deal for a non-stop flight to a U.S. hub by the end of 2020. The airline also said that it would not raise existing airline fees beyond Regina’s consumer price index.
The exemption would include a promise to apply to the province for another tax exemption worth about $199,000 — giving the airport about half a million dollars to work with.
Bogusz said the airport will also be pitching in.
“(We are) putting together a significant financial package out of our own pocket to, of course, match and work with these other funds that we’ve asked for,” he said.
Bogusz said the airport has been working hard to get back flights since the last direct U.S. flights to Chicago, Minneapolis and Denver pulled out in 2015 and 2016.
He said he personally pitches the city to airlines, but just asking isn’t enough anymore.
“We have to put some skin in the game with the airline to get them to come back to our city,” he said.
Bogusz explained that, to get an airline to come here, there needs to be some kind of incentive attached, reducing the airline’s financial risk in offering the service.
The airport previously had an tax exemption, but city council decided not to renew it in 2017.
The decision on the exemption is headed to the city council meeting on Aug. 26.
Airport renovations
Whether travellers are going directly to their destinations or not, the airport is hoping they’ll spend more money before leaving.
It has started on a renovation project on the second floor of the airport, erecting walls to put the Relay store, full-service Tim Hortons and Skyway restaurant all behind security. That means travellers will be able to access the services after going through the security checkpoint instead of before.
Bogusz said the airport had heard overwhelmingly from customers that they want more choices once they’re through security.
“The airport is going to be rolling out a multi-year plan to continue to enhance our air side and to make sure that our customers know that this is a world-class airport and we’re proud to be the capital city of Saskatchewan,” said Bogusz.
The renovation is the first step in that plan. It will also add a children’s activity area to the waiting area behind security, and change around the screening lines for trusted travellers and people with Nexus cards. That would make sure people know where to go and keep them moving through security.
Bogusz said this will bring the facility in line with other modern airports. Most have 75 per cent of their services after security and 25 before, while Regina’s airport is currently the other way around.
The renovations are expected to be done for Christmas this year.
