Proposed agreement with United Airlines guarantees $600,000 in revenue

1 month 3 weeks 3 days ago March 06, 2017 Mar 6, 2017 Monday, March 06 2017 Monday, March 06, 2017 2:21:00 PM CST in News
By: Lexi Larson, KOMU 8 Reporter
loading

COLUMBIA - A proposed agreement will be introduced at Monday's Columbia City Council meeting that would guarantee United Airlines $600,000 in revenue in its first year on flights to Denver International Airport. 

This means that if the airline falls short of $600,000 in revenue, the city would have to make up the difference. 

Ward two city council representative Michael Trapp said the agreement would also require the city to spend $250,000 in marketing for the airline, as well as waive landing and rental fees, which would amount to another $125,000. 

Trapp said many organizations are willing to help raise the money.

"Likely we'll reach out to our community partners," Trapp said. "When we put together the last revenue guarantee, which was substantially bigger, we were able to raise almost all of it from the Chamber of Commerce, large businesses in Columbia, the University of Missouri, the county, Jefferson City and Cole County."

Trapp said all these organizations are expected to contribute because of how beneficial the airport is for all of them.

The last revenue guarantee the city agreed to was in 2012 with American Airlines. That agreement guaranteed the airline about $3 million in profits, according to Trapp. 

"The first revenue guarantee really didn't cost us anything out of pocket."

Trapp said with American Airlines, two weeks of flights didn't do well and the city had to make payments, but it was not a substantial amount. 

Columbia Community Relations Director Steven Sapp said United Airlines is asking for a much smaller revenue guarantee because COU has grown in the past few years.

"It's likely with United's business model they saw the additional unmet demand within our market and didn't feel they needed the same revenue guarantee as American did four years ago," Sapp said. 

"It's pretty par for the course," Trapp said. "Airlines like sure bets."

Any money the city does have to pay would come from the city's airport fund, which is funded by the transportation sales tax. 

Trapp also said he thinks United Airlines is interested in Columbia Regional Airport because the city voted to approve a new terminal for the airport. 

"I think it demonstrates commitment," Trapp said.

If the United ticket sales do not do well, there is a chance the airline could leave COU at the end of the agreement. 

However, Sapp said he is confident the new routes to Colorado will be profitable. 

 

 

More News

Grid
List
JEFFERSON CITY (AP) — Roughly 240,000 more Missouri Medicaid recipients are being switched to a system under which private companies... More >>
2 hours ago April 30, 2017 Apr 30, 2017 Sunday, April 30 2017 Sunday, April 30, 2017 3:37:00 PM CDT in News
COLUMBIA – A campus organization known as Sustain Mizzou could help the University of Missouri earn its first "Tree Campus... More >>
3 hours ago April 30, 2017 Apr 30, 2017 Sunday, April 30 2017 Sunday, April 30, 2017 2:00:00 PM CDT in News
COLUMBIA - Families and pets met Sunday at Stephens Lake Park for the Mutt Strut, a benefit serving MU's Barkley... More >>
7 hours ago April 30, 2017 Apr 30, 2017 Sunday, April 30 2017 Sunday, April 30, 2017 10:46:00 AM CDT in News
COLUMBIA - April 30 is National Adopt a Shelter Pet Day, so KOMU 8 News asked for viewers to share... More >>
8 hours ago April 30, 2017 Apr 30, 2017 Sunday, April 30 2017 Sunday, April 30, 2017 9:39:10 AM CDT in News
ASHLAND — Search and rescue crews found a woman in Cedar Creek this afternoon after a kayaking accident. She was... More >>
18 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 11:20:00 PM CDT in News
KANSAS CITY (AP) — A Missouri woman paralyzed by Lou Gehrig's disease isn't letting any limitations from the incurable disease... More >>
21 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 8:45:00 PM CDT in News
JEFFERSON CITY (AP) — New Missouri Gov. Eric Greitens' involved and sometimes aggressive leadership style is getting mixed reviews from... More >>
21 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 8:41:12 PM CDT in News
COLUMBIA — Stephens College fashion design, marketing, management and communication students hosted the 73rd annual student design fashion show, called... More >>
21 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 8:12:00 PM CDT in News
FULTON — The city of Fulton is teaming up with William Woods University Chemistry Professor Joe Kyger to figure out... More >>
21 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 8:09:00 PM CDT in News
CALLAWAY COUNTY — First responders rescued three families from their homes in Callaway County Saturday during floods that swept through... More >>
21 hours ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 7:47:00 PM CDT in News
FULTON — Emergency officials responded to a fatal crash near the intersection of State Route O and State Route UU... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 5:23:00 PM CDT in News
COLUMBIA — Despite non-ideal weather conditions, people gathered at MU Saturday afternoon as a part of a nationwide climate change... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 4:46:00 PM CDT in News
JEFFERSON CITY — Ever wonder what to do with your unused prescription drugs? The annual 'Drug Take Back Day' helps... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 3:37:00 PM CDT in News
COLUMBIA — Police officers responded to an armed robbery at Check Into Cash Saturday afternoon. According to a release... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 3:27:00 PM CDT in News
MID-MISSOURI — Flooding caused road closures on Saturday. KOMU 8 News viewers shared photos and videos of what they saw.... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 2:31:00 PM CDT in News
COLUMBIA — The Boone County Office of Emergency Management has reported numerous road closures due to flooding Saturday. ... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 1:32:00 PM CDT in News
JEFFERSON CITY (AP) — Gov. Eric Greitens has agreed to pay a penalty to the state Ethics Commission for failing... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 10:50:00 AM CDT in News
JEFFERSON CITY (AP) — Gov. Eric Greitens has bought a lakeside house in a resort community west of St. Louis.... More >>
1 day ago April 29, 2017 Apr 29, 2017 Saturday, April 29 2017 Saturday, April 29, 2017 9:14:38 AM CDT in News
Columbia, MO
Broken Clouds 63°
6pm 61°
7pm 58°
8pm 57°
9pm 54°

Select a station to view its upcoming schedule:

Coming Up Next

5:30p
NBC Nightly News with Lester Holt
6:00p
Little Big Shots
7:00p
Little Big Shots
4:00p
The Maiden Heist
6:00p
Dark Blue
8:00p
Marvel's Agents of S.H.I.E.L.D.

Tonight's Schedule

7:00p
Little Big Shots
8:00p
Chicago Justice
9:00p
Shades of Blue
6:00p
Dark Blue
8:00p
Marvel's Agents of S.H.I.E.L.D.
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld