Sask. government reveals more details on cost of WestJet direct flights deal
The Government of Saskatchewan says it has spent $130,000 so far in a $2.2 million deal to provide air routes between Saskatoon and Minneapolis. The province has entered into a similar deal for Regina.
Saskatchewan initially entered into its deal with WestJet last spring.
It took a revenue guarantee from the province to convince the airline to offer service between Saskatoon and Minneapolis.
Minister of Trade and Export Development Jeremy Harrison says it’s a necessary expense.
“The commitment really was the catalyst for the airlines and WestJet in this case to feel comfortable in putting the route together in the first place,” he explained.
A total of $2.2 million dollars was guaranteed over three years. So far, the cost to taxpayers has been $130,000.
“But it’ll be very, very minimal which is a good thing but that route would never have happened but for the fact that the provincial government was prepared to work with that airport authority to make it a reality,” Harrison added.
Last Monday, WestJet accepted a slightly smaller $1.5 million minimum revenue guarantee to connect Regina with Minneapolis.
The route is set to begin offering flights in April of 2024.
“The province of Saskatchewan was an incredible partner in ensuring we could secure this flight to Minneapolis with WestJet,” said James Bogus, CEO of the Regina Airport Authority (RAA).
“They’ve actually contributed $500,000 per year for three years in incenting this airline to consider flying.”
Saskatchewan hopes that success on the Minneapolis routes will convince airlines that flights could also be viable to other American cities.
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