Skywest Airlines Payment Agreement May Cost City Of Cheyenne $400k

The City of Cheyenne is on the verge of making a serious monetary investment to ensure that flight services are maintained at its regional airport. A proposal that would include a potential outlay of $400,000 as part of a greater agreement with Cheyenne Regional Air Service Focus, or CRAFT, during the fiscal year 2025 was discussed at Monday’s city council meeting.

This $400,000 payment is the 20% required to guarantee the minimum revenue of $2 million needed to secure flight services with SkyWest Airlines. Under an MRG agreement, local governments make up the difference between what an airline projects it needs to have in revenue to operate in a market and how much it actually brings in, meaning the final payment could amount to less than the maximum amount agreed upon.

The funds for this are to come from the 2021 Specific Purpose Option Tax Fund. The proposal still has to be reviewed by the city’s finance committee before a final vote; the full City Council will vote on it in their July 22 meeting.

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In a related but separate development, council members voiced support for the Cheyenne Regional Airport’s effort to receive federal funding for critical maintenance of the air traffic control tower. The airport is applying to the Federal Aviation Administration and requesting up to $850,000 over five years.

Each item on the list is an urgent need:

  1. Sealing the tower to prevent further water intrusion
  2. Replacement/upgrade of the HVAC and electrical systems
  3. Door replacements
  4. Various building repairs for the better safety of staff

These are considered necessary so that the airport control tower may continue to run safely and efficiently.

As Cheyenne weighs these million-dollar investments in its air transport infrastructure, city officials are striking a balance between the concern of keeping essential air services and responsible financial management. While effects will definitely be involved in these decisions, they are most likely to have far-reaching implications on the region’s connectivity and economic development for many years to come.


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