Air Program Funding Reserves
Critical to Program Growth

Air program funding reserves is critical to program growth. The community should fund a reserve to account for the volatility in year to year air service costs and funds available and thereby support a consistent air development effort. The airline industry is cyclical like all business and some years will have more funding requirements than other years. Communities should consider a carryover of some or all of their annual non-applied funding to help fund higher than usual costing air service opportunities or have a larger reserve for years that cost more than expected (particularly in the case of revenue guarantee programs and/or incentive programs).

Setting up air program funding reserves recently has been highlighted by a situation in Vail Colorado. This community doesn’t have air program funding reserves. They recently were given a short window opportunity to continue a seasonal flight to Toronto. While they were able to rally community stakeholders to come up with the funds, it was a scramble and they could have lost this opportunity. Many communities can’t move within weeks to get funding necessary for this type of air service opportunity. Some communities can’t even react within a month or two and having air program funding reserves set-up in the program structure can make sure air service opportunities don’t pass your community by.

Community Flights has developed over 35 best practices and guiding principles for communities looking to improve their air service. The above is just a small sample of a complete guidebook of best practice.

If you’d like to receive the complete guidebook for FREE: Community Flights Air Service Development Best Practices and Guiding Principles, email: scott@communityflights.com and ask that we send the full guide.

Scott Stewart is the principle of Community Flights; an air service support, development and management company. Community Flights works with communities, organizations or businesses on leveraging the great economic asset that air service is for economic gain. Scott formed Community Flights in January 2013 to help mobilize community support efforts and guide clients in bridging the “air service understanding gap” with the airlines to create an airline and community win-win air service support and performance environment. You can find more info about Community Flights at www.communityflights.com. Contact Scott Stewart directly at scott@communityflights.com .