Augusta Regional Airport is asking the city to set aside $1 million in next year’s budget to attract a new airline.
Executive Director Herbert Judon made the request to the Augusta Commission last month. The money would back a minimum revenue guarantee, or MRG, a common industry incentive that pays the airline if new routes fail to become immediately profitable.
AGS is in negotiations with a prospective airline that would bring direct service to two new markets and potentially more, but needs the incentive close the deal, Judon said.
The funding isn’t a lump sum and only kicks in if Augusta first secures the new carrier and then it doesn’t meet revenue thresholds, he said.
The airport has turned to a consortium of interested parties, including other local governments and the private sector, for financial backing, he said.
The flights would bring about 30,000 additional passengers to the market and could begin by next spring.
“With this particular carrier, if they were to come, they’re looking probably at right before the Masters,” Judon said.
A 2020 study showed AGS has a $285.7 million local economic impact and contributes $13 million in state and local tax revenues, he said.
Commissioner Don Clark, who served on the Augusta Aviation Commission, welcomed the prospect.
“More airlines means more growth, and more rates means more reasonable rates for everyone involved,” he said.
The funding decision goes before the Augusta Commission at its regular 2 p.m. meeting Tuesday.
Change order, delegations, setting millage on agenda
Other items going before the commission include:
- A $1.15 million change order adding dredging the Turknett Spring sediment basin to an earlier contract with Gator Dredging. Some commissioners questioned the addition and pushed the item to Tuesday without a recommendation.
- The commission has seven individuals signed up to speak at the meeting, including Civil and Magistrate Judge Carletta Sims Brown about a community resource fair. Charter Review Committee secretary Angela Bakos and local activist Clarence Kendrick are speaking about the resolution establishing the committee and its plan of action.
- Mayor Pro Tem Wayne Guilfoyle wants to talk about the hundreds of properties held by the Augusta, Georgia Land Bank Authority or controlled by Augusta Housing and Community Development.
- Commissioner Stacy Pulliam wants staff to keep a document updated showing progress toward completion of commissioner requests.
- A final item is setting the millage rates for this year’s tax bills. Commissioners previously agreed to adopt the rollback rate of 6.277 mills and use reserves to cover a predicted $11 million shortfall. The rollback rate is the rate that raises the same amount of taxes as last year.
