Commercial airline pursued
City of Chico awarded $500K federal grant to enhance air service
The U.S. Department of Transportation has awarded a $500,000 grant to the city of Chico to enhance Chico Municipal Airport services, according to a news release issued Monday (March 2).
The Small Community Air Service Development Program grant comes as the city attempts to attract commercial air service. It will be applied toward the city’s “revenue guarantee fund,” a necessary component to incentivize an airline with guaranteed revenue during an initial start-up period.
The city noted it also has applied for two other grants—$14 million from the Federal Aviation Administration to rehabilitate the airport’s runway, and a U.S. Economic Development Administration disaster recovery grant, which would assist with widening Cohasset Road from Eaton Road to Ryan Avenue.
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