Rockford airport pays Frontier Airlines, other carriers to operate flights to four destinations

According to latest data released by Chicago Rockford International Airport, the Greater Rockford Airport Authority paid Frontier Airlines and two other carriers to keep flying to four destinations.

The Greater Rockford Airport Authority paid a total of $677,710 between December 15, 2011 and April 30, 2012 to keep Frontier Airlines flights as well as those of Vision Airlines and Apple Vacations keep flying routes to four destinations.

The airlines are paid by the airport authority in case the flights fail to hit certain agreed financial or passenger thresholds. These payouts are mostly used by the airport authority to help airlines expand their flights services to select destinations, while ensuring that the airlines do not lose money in the course. By agreeing to share financial burden, the airport in fact becomes the risk partner of the airline.

The Greater Rockford Airport Authority paid Frontier Airlines $1.4 million as revenue guarantee starting in mid-December 2011 and will be effective for one year. The airport authority disclosed that Frontier Airline was paid $297,716 through April to cover the losses on thrice-weekly flights to Denver.