Financial Incentive Evaluation & Negotiation

Over the past several years, airports have become increasingly aggressive in pursuing new air services. However, with many airlines wishing to share financial risk during the start-up phase of new air services, airports must often rely on financial incentives to attract new carriers. While numerous variations exist, the most common incentives in use today include airport fee discounts, joint marketing support, community ticket trusts, and revenue guarantees.

InterVISTAS has extensive experience in developing incentive packages and has done so for numerous airports of all sizes. InterVISTAS has the experience necessary to:

  • Determine whether incentives are appropriate for a specific route/airline.
  • Determine which type of incentive is most likely to achieve the objectives of the airline and the airport/community.
  • Quantify the potential risks of each proposed incentive program, including probability of payout.
  • Determine the appropriate amount of financial incentive.
  • Identify funding sources and legal considerations/restrictions impacting incentives.

InterVISTAS incorporates this experience and expertise into rational incentive policies that allow clients to progress with a clear and consistent package for generating airline interest in long term, financially viable new services.