A big boost from a federal grant looks to help increase commercial air service offerings for Sioux Falls. The likely destination looks to be Seattle.

The U.S. Department of Transportation has awarded $500,000 to the Sioux Falls Regional Airport in an effort to help address the challenges of local air service such as high fares, insufficient service, and lack of competition through the Small Community Air Service Development Program.

Executive Director Dan Letellier says the numbers support new routes that serve the west coast. “Year over year (we’ve had) double digit increases for the last five or six years with people going to and from Seattle. There are other connection opportunities with Alaska Airlines has a hub in Seattle. It really would feed customers up and down the west coast to Mexico and Hawaii.”

Letellier says reducing the upfront cost for expanding airline service helps entice new routes. “Certainly there’s a risk associated with that for any new airline that comes to a community for people be aware, get established and be profitable. Airlines ask for some type of risk abatement to provide reimbursement for loss revenue in that first 12 to 18 months.”

In addition to the federal funding, another $250,000 in local money has been contributed. Sioux Falls Development Foundation and Forward Sioux Falls are among the entities helping the cause.

This year, the Department received 49 eligible applications from 29 states. The communities that will receive grant awards this year are: Tallahassee, Florida ($750,000); Salmon, Idaho ($150,000); Presque Isle, Maine ($250,000); Traverse City, Michigan ($750,000); Great Falls, Montana ($385,000); Fargo, North Dakota ($500,000); Redmond, Oregon ($500,000); Sioux Falls, South Dakota ($500,000); College Station, Texas ($475,000); Pasco, Washington ($750,000); and Riverton, Wyoming ($481,810).

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