Saskatchewan continuing funding support for direct U.S. flights

The province is continuing revenue guarantees for direct flights to Minneapolis and Denver, with over $8 million paid out in subsidies. Wayne Mantyka reports.

The Saskatchewan government is renewing some of its subsidies aimed at maintaining direct air service between the province and the United States.

Saskatchewan had gone several years without direct U.S. flights before the province introduced revenue guarantees for airlines. The incentives helped establish routes between Saskatoon and Minneapolis, followed by flights from Regina to Minneapolis and Denver.

One of the original agreements has now expired and is being renewed.

“We’ve heard from the Chamber, we’ve heard from residents, we’ve heard from the research community that the access to the U.S. and these direct flights is integral,” Trade and Export Development Minister Warren Kaeding said.

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The province has renewed its annual $2.2 million revenue guarantee supporting flights between Saskatoon and Minneapolis. That agreement had already been in place for three years.

Meanwhile, there is still one year remaining on a separate $500,000 annual revenue guarantee for Regina-to-Minneapolis service, along with two years left on a $3.5 million annual guarantee supporting flights between Regina and Denver.

Combined, the province has paid out just over $8 million so far.

Regina Airport Authority CEO James Bogusz said the long-term goal remains for the routes to become financially sustainable without government support.

“These routes can stand on their own but there’s been a lot of headwinds, both in travel demand to the United States specifically on the leisure side. Some Canadians choosing not to travel as often or even at all to the United States, but business travel, which these flights are intended for, appears to be quite resilient,” Bogusz said.

While the province may not want to provide revenue guarantees indefinitely, officials say rising fuel costs and airline route reductions continue to create challenges for maintaining direct international service from Saskatchewan.