By James T. Hammond and Mike Fitts
jhammond@scbiznews.com
mfitts@scbiznews.com

S.C. lawmakers are near an agreement to add $10 million to the airline incentives bill to allow Columbia Metropolitan Airport to court a low-fare airline.

The original bill included $15 million to subsidize any low-fare carrier that would agree to begin serving any airport in South Carolina. But Columbia lawmakers have blocked passage of the legislation in the state Senate, fearing there was already a tacit agreement for Southwest Airlines to serve Charleston and Greenville-Spartanburg airports only, excluding Columbia.

Midlands officials had feared that the Columbia airport would have no access to the funds once Greenville-Spartanburg and Charleston had made their efforts to land Southwest.

The new tentative agreement would add the $10 million with the understanding that it would allow Columbia airport officials a shot at attracting a low-fare carrier.

Columbia Metro also had bid for Southwest’s service but had been spurned in favor of other S.C. destinations, according to Dan Mann, executive director of the airport.

Southwest Airlines officials told Columbia officials they do not believe they can make money in Columbia, regardless of the subsidy, lawmakers said. The airline has told lawmakers it expects it could begin service at Greenville-Spartanburg in March if the General Assembly approves the airline subsidy bill. Southwest also is interested in serving Charleston, the lawmakers said.

If the deal is approved, Columbia Metro could use money from the fund to try to lure another low-cost carrier or to keep and grow service from its current carriers, Mann said last week.

“All we want is a fair program in which we have a chance to compete,” he said.

Without incentive money, Mann said, Columbia Metro would face the loss of jobs, flights and possibly entire carriers if Southwest comes to two other state airports.

“Our service will suffer in a major way,” he said.

State Rep. Dan Cooper, R-Piedmont, who chairs the House Ways and Means Committee, said today that under the terms of the tentative agreement, Columbia would have access to the $10 million six months ahead of the other airports.

Columbia-area lawmakers just wanted a “fair chance” to attract a low-fare carrier, Cooper said.

Cooper said he believes the senators are close to agreement to approve the legislation before the General Assembly adjourns this year. He sent a letter to the members of the Senate asking them to support the airline incentives bill and laying out what he believes is at stake if the bill does not pass.

“As you know, the House-passed bill establishes a grant program within the State Aeronautics Commission for regional economic development entities and air service task forces,” he said. “The bill defines the grant selection criteria with the goal of providing airline travelers with additional air flight options and more affordable airfares.

“With over 2.9 million airline passengers boarding flights each year at our four major airports, this bill will help many sectors of our state’s economic activity, including business, tourism, recreation, and accommodations.”

Among the four major commercial service airports located in the state — Charleston, Columbia, Greenville-Spartanburg and Myrtle Beach — there are about 165 commercial flight departures each day, Cooper said in the letter. When comparing the airfares to other major metropolitan cities in the United States, fares are generally 135% to 446% higher than those to the same destinations from Atlanta and Charlotte.

“In my area of the state, 27 prospective companies have identified affordable air service as a key factor in making a final decision to locate there. In total, these companies would bring an estimated 13,000 new jobs and $4.5 billion in capital investments. Likewise, there are 16 corporate expansions being considered who also identified affordable airfare rates as a key factor in their decision. These expansions would bring an estimated 790 jobs and $935 million in capital investment,” Cooper said.

Reach Jim Hammond at 864-235-5677, ext. 15. Reach Mike Fitts at 803-401-1094, ext. 204.