MCEDP

The Moore County Airport is one more than one-third of the way toward reaching its funding goal to bring commercial air service back to the area after 20 years.

Through efforts with the Moore County Economic Development Partnership, the airport has thus far raised more than $1.3 million by local businesses and institutions private donations. The Pinehurst Resort and USGA have both contributed to the fund.

To secure the route, community leaders are working to raise $3 million for a Minimum Revenue Guarantee (MRG) fund, a standard performance-based incentive used nationally to launch new airline service until it becomes self-sustaining.

“I’m proud to report that we have secured more than $1.3 million in pledges so far,” said Natalie Hawkins of the Moore County Economic Development Partnership. “And that has some real momentum, some real positive momentum that has come from several lead donors.  But, with that means we still need another $1.7 million to reach our goal. If we want to secure air service by next spring, we need to reach that fundraising goal by this summer.”

The Airport Authority, along with tourism officials and the Economic Development Partnership, have been working for the better part of a year to bring back commercial air service. This past summer, officials with the Moore County Airport told county officials there was a major airline interested in bringing a daily flight on an aircraft akin to a 50-seat CRJ200 regional jet connecting with Washington Dulles International Airport.

The flight could service about 29,000 passengers per year, with 6,300 of them being regional visitors. Washington Dulles offers about 100 one-stop destinations.

“This is no longer speculative,” said Airport Authority Chairman Adam Kiker. “This is real. We have an airline, an air carrier that has expressed an interest to us. This is not a, ‘they might do this’ or ‘they could do this.’ This is a simple equation, if we come up with the funds that they need, they will deliver air service to Moore County.”

Studies from two years ago by Volaire Aviation Consulting show that  54 percent of passengers who fly into Moore County were local passengers flying in on return trips. The other 46 percent of passengers were just bringing inbound passengers.

To secure the airline, the airport needs to raise the $3 million as an incentive to that airline. That fund would be designed to ensure that the airline meets its minimum revenue goal regardless of how many flights or passengers it flies.

Should an airline agree to bring service, the airport would establish a contract with the airline that states that the airport will meet its cost, plus profit. Anything below that agreed-to number, the revenue guarantee, not to exceed $3 million, would make up any difference. Anything the airline makes above its goal, the county would get credit for.

The Moore County Airport cannot legally provide financial incentives, but it can be provided through donations from businesses or individuals. None of the minimum revenue guarantee could come from airport funding.

In a unique circumstance, the airport is also not allowed to accept any funding from the Convention and Visitors Bureau. When the Moore County Board of Commissioners approved the occupancy tax increase last spring, it came with a request that the CVB sign an agreement that any additional revenue would not be used to subsidize or fund commercial air service to the airport.

Other small airports in the country often get most of their revenue guarantee funding from tourism bureaus. However, commissioners have long been skeptical of using any public money to recruit or subsidize a carrier and have remained so throughout the discussions.

Moore County had to pay several hundred thousand dollars in 2007 when the last commercial airline ended service at the airport and sued for payment of an incentive contract.

While it has no interest in using occupancy tax revenue or taxpayer funds for any airline fund this time around, the commissioners did agree to aid the airport’s endeavor by creating an account for any money collected from other businesses.

In polling 537 voters in Moore County over the weekend of Jan. 9, 79 percent of those responding expressed that they favor bringing commercial service to the airport, with 11 percent opposed and 10 percent unsure.

The survey polled all ages of registered voters across the northern and southern part of the county, with consideration for zip codes in the municipalities of Pinehurst and Southern Pines where population is dense. The Village of Whispering Pines was considered a part of the northern polling location. Responses were collected using social media advertising and SMS text messaging.

The survey did not only gauge general support for the prospect of commercial service, but also whether those polled would use it. Among those who support bringing commercial flights to Moore County Airport, 82 percent said they would be likely to use it, primarily for personal and domestic travel. This statistic includes people in all parts of the county, as well as 65 percent who say they don’t currently use air travel during the course of a year.

“ They took a little study, they took a little poll, 79 percent of the people in this county poll said, ‘We want this,’” said State Senator Tom McInnis. “I can assure you, without hesitation, little reservation or secret evasion of mind, this will be a defining moment in this community in many ways.”

(Article by Elena Marsh, The Pilot)