NEW MEXICO GRANT PROGRAM TO HELP PROVIDE AIR SERVICE TO RURAL AREAS

New Mexico is currently establishing a framework that will help guide state-provided grants for rural areas seeking the establishment of new routes for passenger flight service from their local airports. The Rural Air Service Enhancement Act enabling the state grant program will become an effective law on July 1 of this year, but grants will likely not be made until September. The program has $9 million available for grant awards and applications will competitively consider the demand for air service, economic impact, and feasibility of a New Mexico licensed carrier to provide the air service.

Grants of up to $900,000 of the available funds can be utilized for infrastructure improvements while the remainder is designated for providing minimum revenue guarantees to air carriers. In order to qualify for the application process, a city or county must have 20,000 or more residents living within 50 miles of the airport requesting grant assistance. While 20 of New Mexico’s 50 airports are qualified to apply, the state does not yet have an indication of the number of actual applicants.