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City council will consider request at its Aug. 26 meeting
CBC News · Posted: Aug 08, 2019
The Regina Airport Authority is hoping to land a deal that could see local travellers fly directly to U.S. destinations.
It has been roughly four years since a flight from any major city in the U.S. arrived in the Queen City, and now the airport authority and the City of Regina are in talks about a possible property tax exemption totalling $538,000 per year. The authority says this move would help it entice those U.S airlines back.
The total exemption would include municipal taxes of $311,400, an education tax of $199,000 and $28,000 in library taxes. If city council approves the exemption, it would have to apply to the province to approve the break on the public education property tax.
Regina airport seeks support
In May 2019, the airport authority requested support from the City of Regina for a five-year plan that would ultimately see Regina offer direct flights to U.S. airport hubs.
The airport authority says the property tax exemption would allow it to create incentives for U.S airlines that would include revenue guarantees, reduction in landing and terminal fees, as well as cash for marketing. The airport says it would commit to daily, year-round flights to U.S. hubs by 2020 and not increase fees for customers beyond the Regina consumer price index, set out by Statistics Canada.
In 2018, the Regina Airport Authority undertook a financial impact assessment that factored in two daily flights to cities such as Denver or Chicago, with a 50-seat availability. The assessment found such an option would generate $12 million a year to the local economy.
James Bogusz, president and CEO of the airport authority, wrote to the city, stating air service makes up a large component of the city’s gross domestic product activity. Support is critical for a thriving economy and promoting economic growth within the city, Bogusz stated.
Under the five-year plan, the airport authority would invest money into air service and retention with a possibility to renew once the term is up.
City council is set to review the request at an Aug. 26 meeting.