September 4, 2020 8:53 am

The Metropolitan Airports Commission is considering a relief package

By Sandesh Ilhe

If approved by the MAC, the plan would reduce the total fees and rents the carriers otherwise would’ve paid to operate at MSP in 2020. Those payments typically amount to one-third of the MAC’s annual revenue.

MSP airport officials planning airline relief package worth up to $41M

A steep drop-off in air travel since the start of the pandemic has prompted airlines to suspend routes and scale back their networks. As of August, passenger volumes remained about 70% below 2019 levels, an improvement from April, when they were down 95% year-over-year.

Airport spokesperson Patrick Hogan said maintaining a strong partnership with the major carriers serving MSP will put the airport in the best position to recover after the pandemic. Airlines have suspended flights on some routes due to low demand during the pandemic, and airports across the country are angling to regain those routes when the threat of Covid-19 eventually fades.

“We want to make sure we don’t lose ground. We want to stay as competitive as we always have been,” Hogan said.

MSP in April was awarded a $125 million federal grant through the federal CARES (Coronavirus Aid, Relief and Economic Security) Act. Since airlines produce about one-third of the MAC’s annual revenues, airport officials decided an amount equal to roughly one-third of the grant, or $41 million, was a fair cap for the relief package.

The MAC’s Operations, Finance and Administration Committee is set to review the airline relief proposal Tuesday.

Sandesh Ilhe
With an Engineers degree in Advanced Database Management and Information Security, Sandesh brings the deep understanding of the digital world to the table. His articles reflect the challenges and the complexities that come along with every disruption in the industry. He carries over six years of experience on working with websites and ensuring that the right article reaches the right reader.
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