BLOOMINGTON — With AirTran Airways ending its daily flights from Bloomington to Orlando, Fla., and Atlanta, Ga., in June, the Central Illinois Regional Airport could lose an estimated 40 percent of its business.

The loss of the low-fare carrier could force the CIRA to raise its service fees, which is why the McLean County Chamber of Commerce is encouraging local governments and businesses to invest funds in a risk mitigation account that could be used as an incentive for a low-fare carrier to provide their services at the Bloomington-Normal airport.
“A low-cost, high-quality carrier is truly necessary as flyers from CIRA are accustomed to choice in times, destinations and a great price,” said McLean County Chamber of Commerce Director Charlie Moore. “Without the option of a low-cost carrier comes less competition, which means fewer flight selections at a much higher cost.”
On January 26, the McLean County Chamber of Commerce created the Community Air Service Initiative (CASI). As part of the initiative, a risk mitigation account that would be used to guarantee a low-fare carrier that they would not operate at a loss at the CIRA, has been created.
“Funds will be used to create a risk mitigation account dedicated to an airline (or airlines), not the airport, in the instance that the airline may be operating at a loss,” said Moore. “This isn’t a cash incentive, but rather profitability guarantee.”
Local governments and businesses, including the Town of Normal, City of Bloomington, County of McLean, AFNI, Inc., State Farm Insurance, Country Insurance, McDonald’s Corp., Fox and Hounds Hair Salon and Day Spa, Bloomington-Normal Convention and Visitors Bureau, Economic Development Council for the Bloomington-Normal Area, McLean County Chamber of Commerce and Illinois Wesleyan University, have invested over $450,000 in the risk mitigation account.
If a low-fare carrier does not operate at a loss, the funds in the risk mitigation account will be returned to the local governments and businesses that donated them.
“There’s a potential that 100 percent of the funds invested may be returned to each of the investors at the end of a contract period, should the load and yield factor be at industry standards,” said Moore.
Using the funds in the risk mitigation account as collateral, those involved with the CASI will negotiate with an airline that is willing to provide a low-fare carrier service at the CIRA.
“As an Airport Authority, due to FAA (Federal Aviation Administration) policy, they can’t negotiate with any one airline with incentives, guarantees or mitigation accounts,” said Moore. “However, as a community organization, we can, which is how CASI came to be in formation. (We) will work with any airline to discuss service, type of service, destination locations, time of service, so on and so forth.”
The McLean County Chamber of Commerce is encouraging other governments and business to contribute to the initiative, financially or verbally.
“We would welcome any new additions to this effort, as either fiscal or verbal supporters of the effort,” said Moore. “The more businesses or organizations that pledge their support, the more strength the Community Air Service Initiative has in negotiation with any airline that would have an interest in the conversation. CASI is strength in numbers, not only as a financial authority, but also as a community advocate.”