The U.S. Department of Transportation has awarded nearly $12 million to 14 communities seeking to improve or expand commercial air service.
The grants were issued through the Small Community Air Service Development Program, commonly known as SCASDP. The federal program provides funding for initiatives such as revenue guarantees, marketing campaigns, startup costs, and air service studies.
DOT received 60 applications from communities in 32 states and territories. Four were deemed ineligible, leaving 56 applicants seeking nearly $49 million. The agency ultimately selected 14 projects in 14 states for a combined $11.975 million.
Most of the selected communities plan to use their grants for revenue guarantees, which reduce an airline’s financial risk when launching a new route. Receiving an award does not guarantee that the proposed service will begin. Each community must first enter into a grant agreement with DOT and reach a separate arrangement with an airline.
Dutch Harbor, Alaska – $375,000
Dutch Harbor, also known as Unalaska, will use its award to conduct a regional air service sustainability, affordability, and reliability study.
The study will examine the operational and economic conditions needed to sustain air service to the geographically isolated community. Dutch Harbor cited high and variable fares, airline turnover, and recurring service disruptions in its application.
Flagstaff, Arizona – $800,000
Flagstaff plans to use its grant for a revenue guarantee and marketing campaign supporting service to either Denver or Salt Lake City.
The proposal is intended to restore Denver service or establish a new Salt Lake City route while bringing a second airline to Flagstaff Pulliam Airport. United submitted a letter supporting Denver service, while SkyWest expressed support for a Salt Lake City route.
Grand Junction, Colorado – $950,000
Grand Junction received funding for a revenue guarantee and marketing support for new nonstop service to Houston.
The community identified Houston as an important market because of economic ties between western Colorado’s energy industry and corporate offices in Texas. United submitted a letter of support for the proposal.
Tallahassee, Florida – $1.5 Million
Tallahassee received the largest award in this grant cycle. The funding will support a revenue guarantee, airline startup costs, and marketing for restored nonstop service to Houston.
Tallahassee lost its Houston route in 2021. The community said restoring the flight would address existing demand and provide additional westbound connecting opportunities. United and SkyWest submitted letters of support.
Augusta, Georgia – $800,000
Augusta plans to pursue new nonstop service to Chicago O’Hare using a revenue guarantee and marketing program.
The community cited above-average fares and identified Chicago as its fourth-largest origin-and-destination (O&D) market. American and United submitted letters supporting the proposal.
Cedar Rapids, Iowa – $1 Million
Cedar Rapids will use its award to support new daily service to a New York-area airport.
The proposal allows for service to New York-JFK, LaGuardia, or Newark. Cedar Rapids identified New York as its largest unserved market and said the route could reduce passenger leakage to other airports. United provided a letter of support.
West Lafayette, Indiana – $250,000
West Lafayette received a marketing-only grant to support its existing United Express service to Chicago O’Hare.
SkyWest, operating as United Express, restored scheduled flights to Purdue University Airport in 2024 after a nearly 20-year absence.
Wichita, Kansas – $1 Million
Wichita plans to use its grant for a revenue guarantee and marketing program supporting year-round daily service to an East Coast hub.
Possible destinations include Charlotte or one of the three major New York-area airports. Wichita identified New York as its largest unserved market and cited higher-than-average fares for East Coast travel. American provided a letter of support.
Baton Rouge, Louisiana – $1 Million
Baton Rouge received funding for a revenue guarantee supporting new daily nonstop service to Chicago O’Hare.
The community said the route could increase competition, lower fares, and improve access for companies operating in the region’s energy sector. American and SkyWest submitted letters of support.
Traverse City, Michigan – $750,000
Traverse City plans to pursue daily United service to either Los Angeles or San Francisco.
The airport currently lacks nonstop service west of the Rocky Mountains. The grant will fund a revenue guarantee and marketing campaign targeting one of the two California markets. United submitted a letter of support.
Jackson, Mississippi – $1 Million
Jackson will use its award to pursue the restoration of daily Chicago O’Hare service on either American or United.
United discontinued the route in 2020. Jackson said restoring the service would improve connectivity for the region’s government, healthcare, education, manufacturing, and energy sectors. Both American and United provided letters of support.
New Bern, North Carolina – $750,000
New Bern plans to use its grant for a revenue guarantee supporting daily service to Washington Dulles.
The community said the route would improve access to the national air transportation system and support regional businesses, military operations, higher education, and tourism. United and SkyWest submitted support letters.
Latrobe, Pennsylvania – $850,000
Latrobe received funding to help restore low-cost service to Florida and Myrtle Beach, South Carolina.
Spirit ended service at Arnold Palmer Regional Airport in May, leaving the airport without scheduled commercial flights after 16 years of Spirit operations. The grant will support a revenue guarantee and marketing campaign for replacement service. An unidentified airline submitted a confidential letter of support.
Mosinee, Wisconsin – $950,000
Mosinee plans to use its award to restore service between Central Wisconsin Airport and Detroit.
The Detroit route ended in 2022. The community said its loss contributed to higher fares and increased passenger leakage to competing airports. SkyWest submitted a letter of support for the proposal.
What Happens Next
Each recipient must sign a grant agreement with the DOT before spending federal funds. The program operates on a reimbursement basis, meaning communities must first pay eligible expenses and then seek reimbursement.
Grants involving studies generally remain active for three years, marketing awards for four years, and projects involving revenue guarantees for five years. The revenue guarantee itself may subsidize airline service for no more than three years.
Airline letters of support indicate interest in a project but do not obligate a carrier to launch the proposed route. Communities must still negotiate agreements with airlines, and some previously funded SCASDP proposals have not resulted in new service.
