"MidAmerica will present incentives to lure airline"

Thursday, August 21, 2003

MidAmerica will present incentives to lure airline
By NORM PARISH 
The St. Louis (MO) Post-Dispatch


An airline based in Tulsa, Okla., is being offered reduced airport fees, a
$750,000 loan and $600,000 for advertising as part of an incentive package
to provide passenger service at MidAmerica Airport, St. Clair County
officials said Wednesday. 

The proposed deal to Great Plains Airlines is being presented Thursday to
the county Public Building Commission. Airport Director Tim Cantwell said he
believes the plan will be approved. 

"It's a deal that works for both of us," said Rich Sauget, chairman of the
Public Building Commission, in a prepared statement. "This airport enhances
the region's economy and will for a long, long time." 

The county-owned airport in Mascoutah has struggled to attract an airline
since it opened five years ago. 

In the proposed deal, Great Plains would provide at least a dozen flights a
day from MidAmerica, including trips to Chicago's Midway and Washington's
Dulles. It also would provide flights to Tulsa, Oklahoma City and Nashville,
Tenn., county officials said. 
  
The small airline would receive a package that would include a $500,000 loan
that would be secured by Great Plains aircraft and a $250,000 loan that
would be secured by spare parts. 

Other incentives include: 

The county would purchase $100,000 worth of airline tickets as part of a
$600,000 joint marketing agreement to promote Great Plains Airlines and
MidAmerica. 

Landing and rental fees would be waived for the first year of passenger
service. 

The commission would enter into an agreement with a consultant to establish
a travel bank or similar travel incentive program. 

Great Plains, a privately held airline started in 2001, flies two 32-seat
jets from Tulsa to Oklahoma City, Nashville and Albuquerque, N.M. 

The airline hopes to start leasing three 32-seat Fairchild Dornier 328-100
turboprops next month if it receives approval from the Federal Aviation
Administration. Service at MidAmerica would begin in October. 

In the past, the airline has had to change routes and lay off employees.
Airline officials also have acknowledged that it is losing about $450,000 a
month. 

But its owners say the airline will make a profit if they add three planes
to their stable. 

One St. Clair County official expressed optimism over working with Great
Plains. 

"The county fully supports Great Plains and can only view our relationship
as just beginning," said County Board Chairman John Baricevic. 

MidAmerica's budget is about $3 million, $2 million of which is provided by
the county. 

The last regular passenger service ended in December 2001 when Pan American
Airways left the airport.


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