Commercial Air Service Minimum Revenue GuaranteeCity of Dubuque
City Council
ACTION ITEMS # 2.
Copyrighted
September 15, 2025
ITEM TITLE:
Commercial Air Service Minimum Revenue Guarantee
SUMMARY:
City Manager providing an update on efforts related to
commercial air service and to request City Council approval
to commit additional funds for the minimum revenue
guarantee needed to maintain the existing daily commercial
air service at the Dubuque Regional Airport.
SUGGUESTED
Receive and File; Council Direction
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Travel Dubuque
3. GDDC
4. Dubuque Area Chamber of Commerce
5. Public Input_Uploaded 9.15.25
6. Presentation - Uploaded 9.15.25
7. Loras College - Uploaded 9.15.25
8. University of Dubuque - Uploaded 9.15.25
Page 1116 of 1171
THE CITY OF
DUB E-E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Commercial Air Service Minimum Revenue Guarantee
DATE: September 11, 2025
INTRODUCTION
Dubuque
All -America Ciq
IIIr
II
2007.2012.2013
2017*2019
During annual goal -setting sessions in 2022, 2023, and 2024, you identified commercial
air service as a top priority for the community. The purpose of this memorandum is to
provide an update on efforts related to that priority and to request your approval to
commit additional funds for the minimum revenue guarantee needed to maintain the
existing daily commercial air service at the Dubuque Regional Airport.
In commercial air service, a minimum revenue guarantee (MRG) is an agreement
whereby a municipality or airport operator guarantees an airline a certain amount of
revenue for a new, established, or expanded air route. If the airline's actual revenue
from that service falls short of the guaranteed amount during a defined period, the local
entity pays the airline the difference, reducing the airline's financial risk and encouraging
new service or competition. MRGs ensure that an air carrier receives a predetermined
amount of revenue, regardless of actual ticket sales. This support is provided to
encourage the carrier to start or maintain service, with the duration of MRG funds
depending on factors like load factors, ticket revenues, and carrier expenses. By
fostering new or expanded air service, MRGs help support local economies by
supporting local business and leisure travelers and attracting tourism and visitors, who
then spend money at local hotels, restaurants, and attractions.
BACKGROUND
Prior to the COVID pandemic, Dubuque offered daily commercial air service with three
flights a day to Chicago (O'Hare) on American Airlines, destination charters on Sun
Country Airlines to Biloxi and Laughlin, and private charters (examples: Honor Flight,
MLB, VIP) operating out of the Captain Robert L. Martin Terminal.
In calendar year 2019 (pre-COVID), FAA enplanements reported 36,521 passengers
flew from Dubuque to O'Hare as their destination or connection, on three flights daily.
During that same year, the US DOT Origination & Destination (O&D) report showed an
average of 99 passengers flew from Dubuque to O'Hare daily and a total of 73,184
outbound and inbound total passengers.
Page 1117 of 1171
After the pandemic hit, American Airlines began flight reductions in late calendar year
2020. In response to the pandemic's impact on travel, air carriers received federal relief
funding in an attempt to retain service to national markets. After federal relief funding
ran out, American Airlines announced in June 2022 they were suspending service to
Dubuque starting September 7, 2022, citing the national pilot shortage.
As a result of the loss of daily scheduled air service, a Commercial Air Service Team
(CAST) was formed and eventually evolved into a 501(c)6 not for profit, DBQ Air, with
board members combined from private public organizations:
• Brad Cavanagh, Mayor, City of Dubuque
• Harley Pothoff, Supervisor, Dubuque County
• Molly Grover, President and CEO, Chamber of Commerce
• Keith Rahe, President and CEO, Travel Dubuque
• Anthony Williams, President and CEO, Q Casino
• Jason White, Vice President of Business Services, Greater Dubuque
Development Corporation
• Mary Ann Kurtz Weber, Vice Chair, Airport Commission
• Todd Dalsing, Airport Director, Dubuque Airport
DBQ Air applied for a "refreshed" Small Community Air Service Development (SCASD)
grant, increasing federal participation from $775,000 to $1,500,000. The DOT approved
the grant, and the Airport Commission executed the grant on November 7, 2023. The
SCASD program is designed to help small communities address air service issues.
SCASD can involve revenue guarantees, financial assistance for marketing programs,
start-up costs, and studies. The strategic plan includes the restoration of nonstop daily
scheduled service to a hub and to improve regional connections to the nation and world
for business and leisure travelers.
DBQ Air, working with DBQ Air Service Consultant Matt Skinner from Global Flights,
began meeting weekly to restore daily scheduled service and explore additional service.
Several months of efforts and meetings with mainline and regional carriers resulted in
an option to restore daily service starting with afternoon flights to O'Hare on Denver Air
Connection utilizing an ERJ145 aircraft (50 Seat).
Utilizing the SCASD grant and FAA Air Carrier Incentive Program (which includes fee
reduction, fee waiver, or use of airport revenue for acceptable promotional costs, where
the purpose is to encourage an air carrier to start or increase service), Denver Air began
service on November 4, 2024, featuring interline agreements with United and American
for hundreds of convenient connections beyond O'Hare.
Overcoming Challenges
Dubuque has overcome several challenges prior to and since the restoration of
commercial air service in November 2024.
• No Commercial Air Service at Dubuque for 2 Years:
It has been a challenge to introduce a new service to the market and break travel
habits formed during the two-year absence of local, commercial air service.
• Launching New Service in November:
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Nationally, November through February are low passenger travel months.
• Afternoon Flight Time:
Although the afternoon flight time was the only option available to restore service
at Dubuque, businesses expressed concerns that the afternoon flight was not
ideal for business travel. Many noted this schedule would require them to incur
an additional night of travel. (The afternoon flight and November start were the
only option at time of negotiations). This challenge eventually led to Dubuque Air
working with Denver Air and O'Hare to adjust the flight schedule to an AM
departure and PM arrival which started May 16, 2025.
• Construction at O'Hare:
After the announcement of the new service, O'Hare advised Denver Air of
construction in Terminal L, which impacted jet bridge and gate service for all
Dubuque passengers. Denver Air's only option was remote aircraft parking and
utilizing a bus to transport passengers to and from the terminal from November to
early May. Mayor Cavanagh and Denver Air petitioned O'Hare's gate director
and ultimately restored gate operations and jet bridge service at Gate G2. The
first departure from O'Hare's gate was May 15, 2025.
• No Other Federal or State Funding Options Available:
Dubuque Air and Dubuque and Dubuque County elected officials have
unsuccessfully advocated with federal and state legislators for options to be
added to existing programs such as Essential Air Service, altering SCASD
language, or starting a new program that would assist airports similar to
Dubuque.
• Mainline Air Carriers (American, United, Delta, Southwest):
A City official met with American and was told adding regional markets like
Dubuque is not in their plans. They will continue to rely on regional carriers to
supply passengers to mainline airports. Matt Skinner, Dubuque Air Service
Consultant, also regularly meets with all mainline carriers who have conveyed
the same message.
• Competing Regional Airports:
Cedar Rapids (CID), Madison (MSN), and Moline (MLI) are all competing for
passengers and marketing their service in the Dubuque Regional Airport
catchment area.
SURVEYS
December 2023, prior to pursuing daily scheduled air service a survey was part of a
broader study effort to provide a detailed understanding of the want and need for
commercial air service at the Dubuque Regional Airport, among a variety of
stakeholders and regional users. The results of the study are intended to provide
information for purposes of air planning, air service and airport development, overall
economic planning and development, transit forecasting and development, and
partnerships and participation in a variety of multi -community and regional efforts.
Employer & Resident Surveys
Employers: 228 Responses and 28 interviews
Strong support. Most employers (73%) support efforts to attract Dubuque air
service, recognizing it might require financial guarantees.
3
Page 1119 of 1171
Financial support. Most employers (69%) also support the use of City and/or
County funds to attract air service, while with voluntary private funding efforts,
51 % support with 29% neutral.
Desired service. Chicago O'Hare is by far the leading choice for new hub airport
service, followed by Dallas, Denver, and Minneapolis.
Willingness to Use. Employers estimate that they would be willing to spend an
average of $142 more for a round-trip flight from Dubuque as compared to a
similar flight from Chicago -O'Hare.
Economic Impacts of air service expansion:
Two-thirds (68%) expect a positive impact on their business.
Almost all (95%) expect a positive impact on the greater Dubuque area
economy.
Residents: More than 8,000 responses
Strong Support. The vast majority (91 %) of respondents strongly (78%) or
somewhat (13%) support efforts to attract Dubuque air service.
Willingness to use. The vast majority (86%) of respondents would definitely
(68%) or probably (18%) consider using Dubuque if air service were expanded to
a major hub airport.
Desired service. Chicago O'Hare is by far the leading choice for new hub airport
service, followed by Denver, Dallas, Minneapolis, and Atlanta.
Impacts of Dubuque air service expansion.
84% expect a positive impact on their household.
Almost all (97%) expect a positive impact on the greater Dubuque area
economy.
July 2025 results from a survey targeted toward travelers flying through Dubuque clearly
indicate that people who use the service have a positive experience. As of September
4, over 80 people have completed the survey. Here are some key results:
• 85% rate their experience at the airport at excellent and 10% rate is as good
• 90% are very likely to recommend the airport to friends, family, or colleagues
• 95% are very likely or somewhat likely to use the airport in the future
• 60% of respondents were leisure travelers, 30% were business travelers and
10% were a combination of business and leisure
Population Growth
The Tri-State region's economy and population are growing, commercial air service at
the Dubuque Regional Airport is critical to continued growth.
According to the US Census Bureau's Vintage 2024 population estimates, for the first
time in history, the population of Dubuque County is approaching 100,000. The city of
Dubuque, home to nearly 60% of Dubuque County's total population and the location
where most residents within 50 miles work, shop, and recreate, is a major driver and
beneficiary of this milestone. Only 30 of the 99 counties in the state of Iowa grew in
population from 2010-2020, and only eight of those grew by more than 5,000 people. Of
those eight counties that grew by more than 5,000 people, only Dubuque County (city of
Dubuque) and Scott County (city of Davenport) were outside the Polk County (city of
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Page 1120 of 1171
Des Moines)/Story County (city of Ames) and Johnson County (city of Iowa City)/Linn
County (city of Cedar Rapids) corridors.
According to the US Census Bureau's Vintage 2024 population estimates, only seven
counties in the state of Iowa showed a population increase of more than 900 people
from 2020-2024, and only Dubuque County (+934) was outside the Polk County/Story
County and Johnson County/Linn County corridors. Dubuque County's continued
economic and population growth is a welcome contrast to most of the rest of Iowa -- and
to the 1980s when the Dubuque County lost nearly 10% of its population and
unemployment soared, hitting 23% in 1983. Local commercial air service is expected
and needed in growing communities.
Daily commercial air service provides a conduit to national and international students
attending higher education in the tristate area:
• Loras College — Student population: Approximately 1,600
• Clarke University — Student population: Around 1,200
• University of Dubuque — Student population: 2,190
• Emmaus Bible College — Student population: 206
• Wartburg Theological Seminary — Student population: 193
• Divine Word College — Student population: 61
• University of Wisconsin —Platteville — Student population: 6,696
Economic Development
Since July 1, 2022, Greater Dubuque Development Corporation reports there has been
over $805 million in new construction in Dubuque County with businesses creating
approximately 1,000 jobs. One of the indicators that shows Dubuque is growing and
thriving is building permit fees. Last fiscal year permit fees were $1,357,425, which is an
increase of $567,937 (72%) from the prior fiscal year.
The continuation of local commercial air service is important to major projects already in
the works, such as:
• John and Alice Butler College of Osteopathic Medicine: University of
Dubuque officials plan to open the college in downtown Dubuque in August 2028
and grow enrollment to about 180 students per class by 2030, eventually
reaching 200 students per class for a total enrollment of 400. Air service will be
critical to recruiting and retaining students, faculty, and staff from around the
country and around the world.
• Field of Dreams: The over $80 million Field of Dreams project and all the
visitors it is already bringing and will bring to the area. This year, over 600 teams
from 28 states have played or will play games in Dubuque County, with events
such as skills camps taking place at the field of Dreams movie site. In the near
future, FOD officials hope to welcome more than 1,000 teams per year thanks to
the new fields.
• Expansion of the University of Dubuque Aviation Pilot Program: UD is
growing the program from 350 enrolled students to 500+. Currently US is
constructing a new hangar, flight center, apron and parking.
Page 1121 of 1171
• New and Expanded Amenities and Attractions: A new Dubuque Museum of
Art; development of Wanderwood Children's Gardens; a planned new Dubuque
Community Y; the over $100 million Chaplain Schmitt Island Development Plan,
and numerous commercial, hotel, and housing projects under construction;
investments in city infrastructure and streets.
Air service is imperative to keep this momentum moving forward. It is an infrastructure
which facilitates business, tourism, and helps attract and retain residents
(including students). It is an expected service, no different than high-speed internet,
available land for growth, utilities, ground transportation (bus), recreation space, etc.
Funding Air Service
There are very few incentives or funding mechanisms available for Dubuque to attract
and retain air service.
Essential Air Service (EAS) Program
Unlike other like -sized Iowa communities Dubuque could not participate in the EAS
program in 2012 because air service at the time was self supporting and did not need to
be subsidized, therefore Dubuque is currently not eligible for EAS under DOT
regulations.
Managed by the U.S. Department of Transportation, the EAS program currently
subsidizes commuter and certificated air carriers to serve approximately 60
communities in Alaska and 115 communities in the lower 48 contiguous states that
otherwise would not receive any scheduled air service. Requirements for receiving EAS
funding for communities were set in the Airline Deregulation Act of 1978 and include:
Communities were more than 70 highway miles from large or medium hub airport,
communities that require a per -passenger subsidy rate of $200 unless community is
farther than 210 highway miles from large or medium hub airport.
The Airline Deregulation Act of 1978 also guaranteed that communities served by air
carriers before deregulation (1978) would continue to receive a certain level of
scheduled air service. If an air carrier could not continue that service without incurring
financial loss, the DOT could use EAS funding to award the carrier willing to provide
service.
The FAA Modernization and Reform Act of 2012 included reform measures that a
community must have a minimum number of enplanements to remain eligible for the
subsidy. It also provided the wording, "to remain EAS-eligible, communities must have
participated in the EAS program at some time between September 30, 2010, and
September 30, 2011." Air Service at Dubuque was self supporting during this time
therefore not participating or eligible
As of October 1, 2012, no new communities can enter the program should they lose
their unsubsidized service, except in Alaska and Hawaii. This prohibits Dubuque from
receiving EAS funding under current federal regulations.
Iowa Commercial airports received the following EAS funding in 2024:
0
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• Waterloo ALO
$7.4 Million
• Sioux City SUX
$5.3 Million
• Fort Dodge FOD
$6.4 Million
• Mason City MSW
$6.5 Million
• Burlington BRL
$3.5 Million
Funding Update
Air service is critically important to a local economy by enabling business travel and
connectivity, facilitating global market access, boosting tourism, creating jobs directly
and indirectly through various sectors, and supporting the relocation of businesses and
professionals by providing vital links to the national and global transportation network
Using numbers based on the 2022 Iowa Airport Economic Impact Study, the 2025
commercial air service is estimated to generate nearly $19 million in economic benefit
for Dubuque/Dubuque County.
Dubuque/DAC Commercial Passengers: 2025 Estimated Economic Impact
2025
2025 Est 2022 Econ Output Per Economic
Passengers Passenger Inflation 2022-25 Impact
7,637 $2,201 1.13 $18,994,212
The objective from the start of service is to reach a load factor and ticket price that
sustains air service long-term without an MRG.
The morning departure and evening arrival schedule has been well received by
business and leisure travelers. Enplanements continue to grow and are trending
positively, with Dubuque currently averaging nearly 50% load factors.
DBQ Weekly Bookings
September 2024 to Last Week
:50
400
350
300
250
200
150
100
50
0
9/18/2024 10/18/2024 11/18/2024 12/18/2024 1/18/2025 2/18/2025 3/18/2025 4/18/2025 5/18/2025 6/18/2025 7/1".-'�:" .-.
7
Page 1123 of 1171
To attain self-sufficiency, Dubuque Air Service Consultant estimates Denver Air will
need to reach an average 80% load factor. To reach the additional 30% will require an
additional 15 passengers per flight on the existing 50-seat aircraft, which we believe is
achievable when considering Dubuque's history of approximately 100 passengers per
day pre-Covid.
The following provides a comprehensive financial account for the DOT Small
Community Airservices Development Program (SCASDP) and forecast Minimum
Revenue Guarantee (MRG) to retain daily scheduled commercial air service on Denver
Air Connection at Dubuque Regional Airport. This forecast outlines the estimated
expenses, revenues, and financial needs for maintaining air service between Dubuque
and Chicago O'Hare offering a picture of the financial landscape and the necessary
funding to retain air service.
SCASD Program used for Minimum Revenue Guarantee (MRG)
SCASD Funding:
DOT
$1,500,000
City of Dubuque
$ 150,000
Dubuque Chamber
$ 100,000
GDDC
$ 50,000
Dubuque County
$ 50,000
Travel Dubuque
$ 50,000
Airport
$ 40,000
IA DOT of Aviation
25,000
$1,965,000 Cash
In -Kind Contributions $ 70,195 Media vendors match
Airport Incentive Program $ 27,086 Fees waived
Total $2,062,281
MRG Payments to Denver Air Connection:
Invoice Total
Funding Source
November 2024
$276,608.03
SCASD Grant
December 2024
$260,321.95
SCASD Grant
January 2025
$361,762.02
SCASD Grant
February 2025
$326,687.00
SCASD Grant
March 2025
$312,362.41
SCASD Grant
April 2025
$333,773.15
SCASD Grant
May 2025
$363,468.77
$28,485.44 SCASD Grant Balance and
$334,983.33 Travel Dubuque Funding
June 2025
$282,811.29
$165,015.67 Travel Dubuque Funding and
$117,795.62 Economic Development Revenue
Guarantee
ADDITIONAL FUNDING NEEDED
July 2025 (5 Weeks)
$325,015.06
TBD
August 2025
$249,704.00 EST.
TBD
September 2025
$243,824.00 EST.
TBD
Page 1124 of 1171
October 2025 (5 Weeks)
$323,155.00 EST.
TBD
November 2025
$270,424.00 EST.
TBD
December 2025
$229,824.00 EST.
TBD
Total estimated funding needed to retain service through December 2025:
$ 1,641,946.
Additional Funding Sources and Incentives Utilized to Date:
• Travel Dubuque Board contributed $500,000 to support the MRG in August 2025
• Chamber $50,000 in marketing over two years + $15,000 in kind.
• Dubuque Initiatives committed up to $200,000 for a $100 Airfare Rebate Program
for travelers who purchase round-trip airfare tickets between Aug. 11 and Sept.
30, 2025.
• The Dubuque Airport Commission waives annual rates and charges to DAC
according to FAA Air Carrier Incentive Program. Dubuque also provides
discounted ground handling and fuel fees, consultant and marketing costs.
• The Hilton/Q Casino provides a discount hotel rate for DAC crew.
• The Dubuque Racing Association awarded a $100,000 Mission Grant toward
marketing.
• The Dubuque Racing Association also awarded a 2-year $40,000 Core Grant
toward MRG.
Denver Air Connections Incentive Programs:
• Mile High Elite Rewards: With Denver Air Connections' Mile High Elite rewards
program, one point per flight purchased. Just six points earns a one-way reward
ticket to any Denver Air Connection destination (except Telluride).
• Denver Air Connection's Corporate Discount Program allows businesses and
organizations that travel frequently the opportunity to receive a discount on
Denver Air Connection flights. Eligible businesses can receive up to 20% off all
Denver Air fares for their first year in the program!
ACTION TO BE TAKEN
The City of Dubuque each year adopts a balanced budget. Because of changes that
occur during the budget year each year the city finishes with unexpended funds
remaining. The City of Dubuque is currently working to close out the Fiscal Year 2025
$263 million city budget ($88 million general fund), that ended June 30, 2025, and there
will be available several million dollars (final amount to be determined as the budget is
officially closed out over the next few weeks), some of which can be used to fund a
minimum revenue guarantee (estimated at $1,641,946) through at least December 2025
providing time to provide more information to help determine if commercial air service
from Denver Air at Dubuque Regional Airport is feasible long term.
Y
Mic ael C. Van Milligen
0
Page 1125 of 1171
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Todd Dalsing, Airport Director
10
Page 1126 of 1171
-TRAVEL
W.Ul"
WHERE I M STARTED
September 11, 2025
City of Dubuque
City Council Members
50 W. 13" Street
Dubuque, IA 52001
Dear City Council Members,
On behalf of Travel Dubuque, I am writing to convey our strong support for Air Service at the
Dubuque Regional Airport.
Travel Dubuque is dedicated to leading tourism destination promotion and development to
enhance and expand the Dubuque Area experience. With over 2 million visitors and 314 million
in economic impact annually, the tourism industry is an integral component in the development
and continued prosperity of the Dubuque region. We recognize how vital reliable air service is
to our community, not only for visitors, but also for businesses, residents, and the overall economic
health of our area.
We also want to express our support for the City Manager's recommendation to utilize additional
funds from the FY25 budget to help offset the minimum revenue guarantee. This proactive
approach represents an investment in maintaining a strong air service option for Dubuque and
reinforces the City's commitment to ensuring our community remains a vibrant, connected
destination for both residents and visitors.
Sincerely,
Keith Rahe, President + CEO
Travel Dubuque
Page 1127 of 1171
September 11, 2025
Mayor Cavanagh and Members of the City Council
Dubuque City Hall
50 W 13th Street
Dubuque, IA 52001
Dear Mayor Cavanagh and Members of the City Council,
Greater
Dubuque
DEVELOPMENT CORP.
Schmid Innovation Center
900 Jackson St., Suite 109
Dubuque, IA 52001
www.greaterdubuque.org
The future competitiveness of Dubuque is on the line. Without commercial air service our community
cannot hope to reach its full potential.
Every other regional airport of our size in Iowa receives support from Federal Essential Air Service
(EAS). Nearly $29 million in total. Dubuque alone has been denied that support, putting us at a
crippling disadvantage through no fault of our own. While peers in Burlington, Fort Dodge, Mason
City, Sioux City and Waterloo move forward with federal help we stand alone, dependent on one
another to ensure commercial air service. Dubuque is left to compete with one arm tied behind our
back.
The only path forward is to provide a revenue guarantee to Denver Air. Without this unfortunate reality
Dubuque risks being permanently disconnected from the national economy. Businesses will choose to
expand elsewhere, visitors and conventions will bypass us, talented professionals will look to
communities with the connectivity they and their families require.
Please know that the non-profit sector is also doing its part. Greater Dubuque Development, in
partnership with Dubuque Initiatives (DI) has launched a voucher program funded by DI to directly
increase enplanements. Between August 1 lth and September 30th every ticket purchased for a round trip
to or from Dubuque is eligible for a $100 voucher. To date more than $20,000 in vouchers have been
distributed and the requests are growing by the hour. The mission is clear; boost ridership, reduce the
need for revenue guarantees and demonstrate that this service can succeed.
But without a revenue guarantee from The City those efforts will not be enough. This is not a matter of
convenience it is a matter of economic survival and future prosperity. A revenue guarantee is not a
subsidy; it is an investment. It buys us the time we need until federal financial support is secured and
routes from Dubuque become profitable. Without it we will never reach our full potential. I urge your
favorable consideration of this matter.
In your service,
Rick Dickinson
President & CEO
YOU can be great here.
Page 1128 of 1171
DUBUQUE AREA
CHAMBER
Dubuque Mayor and City Council
City of Dubuque
50 W 13t" Street
Dubuque, Iowa 52001
Friday September 121", 2025
RE: Chamber Supports City Commitment for Denver Air MRG
Dear Mayor and Members of the City Council,
On behalf of the Dubuque Area Chamber of Commerce, I urge you to take decisive action to protect one
of the most critical pillars of our community's economic future: daily commercial air service.
Specifically, we ask for your support of the Denver Air Connection minimum revenue guarantee (MRG).
Securing and sustaining new air service is a multi -year endeavor. While the U.S. DOT Small Community
Air Service Program Grant restored air service in the past year, those funds are now exhausted. Every
major community partner has stepped forward, but without the City's commitment, the future of
commercial air service in Dubuque is at risk. Unlike other Iowa cities, Dubuque must stand alone in this
effort. There are no backup options, no other airlines waiting in line.
Air service is not a luxury —it is a necessity. It connects our residents and businesses to the global
marketplace, influences where families choose to live and determines where companies invest and
grow. The presence —or absence —of air service directly shapes our region's competitiveness,
population growth, and quality of life.
History has shown us what happens when Dubuque is cut off from critical transportation infrastructure.
When the interstate system bypassed our city in the 1950s, the economic fallout culminated in the
downturn of the 1980s. We cannot afford to repeat that mistake.
This is about more than flights; it is about safeguarding Dubuque's future. We ask you to protect our
economy, our residents' quality of life, and the amenities essential to attract talent and investment by
supporting the Denver Air Connection MRG.
Respectfully,
- vfflnwe
Molly Grover, President & CEO
Dubuque Area Chamber of Commerce
Page 1129 of 1171
Adrienne Breitfelder
From: City of Dubuque <noreply-dubuque@gscend.com>
Sent: Sunday, September 14, 2025 4:07 PM
To: Adrienne Breitfelder
Subject: A new Service Request has been created [Request ID #226843] (Contact City Council) -
Dubuque, IA
Caution! This message was sent from outside your organization. Never give your login Allow sender I Block sender
information and password over email! Report
Dubuque, IA
A new service request has been filed.
ID 226843
Date/Time 9/14/2025 4:07 PM
Type Contact City Council
Address 2347 BEACON HILL DR, Dubuque
Origin Website
Comments Dear All,
Firstly, thank you for your service to the City of
Dubuque
I encourage you to NOT further subsidize the
current air service and consider other methods to
make our city a viable departure/arrival airport.
It has been obvious that this subsidizing is only a
band -aid approach and the continuing
competition of regional air service (CR, QC, &
Madison) will continue to be a rival of Dubuque's
and not a plan that's in the interests of the
citizenry as a whole.
I realize that most other cities in Iowa (Waterloo,
Mason City)receive federal subsidies and
Dubuque does not.
To me the only alternative would be to contact
Washington DC and/or the State of Iowa and
pressure our elected leaders (Trump, Ernst,
Grassley, Hinson, Reynolds) to get the Federal
subsidies like other comparable cities have
Geographically we admittedly are in a tough
Page 1130 of 1171
position and I understand that , but to keep using
hard earned local tax dollars to keep this thing
going doesn't make sense.
If there's a surplus in the city budget it would
benefit the community as a whole to invest in
other improvements to our city.
Thanks for hearing me out.
Jim Prochaska
Submitter Prochaska, Jim
2478 Beacon Hill Dr
Dubuque, IA 52003
563-599-2665
jfprochaska@gmail.com
Dubuque, IA
Page 1131 of 1171
Commercial Air Service
and
Minimum Revenue Guarantee
Update
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OM%X-
10
Page 1132 of 1171
INTRODUCTION
During annual goal -setting in 2022, 2023, and 2024, commercial air service was identified as a top priority for the community.
To achieve this priority a minimum revenue guarantee (MRG) is needed. A MRG is an agreement whereby a municipality guarantees an
airline a certain amount of revenue for new or expanded air service.
MRGs ensure that an air carrier receives a predetermined amount of revenue, regardless of actual ticket sales. This support is provided to
encourage the carrier to start or maintain service, with the duration of MRG funds depending on factors like load factors, ticket revenues,
and carrier expenses.
By fostering new or expanded air service, MRGs help support local economies by supporting local business, leisure travelers and
attracting tourism and visitors, who then spend money at local hotels, restaurants, and attractions.
BACKGROUND
Prior to the COVID pandemic, DBQ offered three flights a day to Chicago (ORD) on American Airlines.
In calendar year 2019 (pre-COVID), FAA enplanement reported 36,521 passengers flew from DBQ to ORD as their destination or connection,
on three flights daily. During that same year, the US DOT Origination & Destination (O&D) report showed an average of 99 passengers flew
from DBQ to ORD daily
After the pandemic hit, American Airlines began flight reductions in late calendar year 2020.
In response to the pandemic's impact on travel, air carriers received federal relief funding in an attempt to retain service to national markets.
After federal relief funding ran out, American Airlines announced they were suspending service to DBQ starting September 7, 2022, citing
national pilot shortage.
Page 1133 of 1171
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As a result of the loss of daily scheduled air service, DBQ Air was formed.
-Brad Cavanagh, Mayor, City of Dubuque �►
-Harley Pothoff, Supervisor, Dubuque County M92—'a
-Molly Grover, President and CEO, Chamber of Commerce SOW A60 %X
-Keith Rahe, President and CEO, Travel Dubuque
-Anthony Williams, President and CEO, Q Casino in I
-Jason White, Vice President of Business Services, Greater Dubuque Development Corporation
-Mary Ann Kurtz Weber, Vice Chair, Airport Commission
-Todd Dalsing, Airport Director, Dubuque Airport
DBQ Air applied for a "refreshed" Small Community Air Service Development (SCASD) grant, increasing federal participation from $775,000 to
$1,500,000. The SCASD program is designed to help small communities address air service issues. SCASD can involve revenue guarantees,
financial assistance for marketing programs, start-up costs, and studies. The strategic plan includes the restoration of nonstop daily scheduled
service to a hub to improve regional connections.
DBQ Air, working with DBQ Air Service Consultant Matt Skinner, began meeting weekly to restore daily scheduled service.
Several months of efforts and meetings with mainline and regional carriers resulted in an option to restore daily service starting with afternoon
flights to ORD on Denver Air Connection utilizing an ERJ145 regional jet (50 Seat).
Utilizing SCASD and FAAAir Carrier Incentive Program, Denver Air began service on November 4, 2024, featuring interline agreements with
United and American to hundreds of connections beyond ORD. Initial agreement ended April 30, 2025 with 6-month extensions (May 1 — Oct 31 &
Nov 1- April 30) and a 60-day clause to pause service.
Page 1134 of 1171
OVERCOMING CHALLENGES
Dubuque has overcome several challenges prior to and since the return of commercial air service in November 2024.
•No Commercial Air Service at DBQ for 2 Years:
It has been a challenge to introduce a new service to the market and break travel habits formed during the two-year absence of
commercial air service.
•Launching New Service in November:
Nationally, November through February are lower passenger travel months.
•Afternoon Flight Time:
Although the afternoon flight time was the only option available to restore service at DBQ, This challenge eventually led to DBQ Air
working with Denver Air and ORD to adjust the flight schedule to an AM departure and PM arrival which started May 16, 2025.
•Construction at O'Hare:
After the announcement of the new service, ORD advised Denver Air of construction in Terminal L, which impacted jet bridge and
gate service. Denver Air's only option was remote aircraft parking and utilizing a bus to transport passengers to and from the
terminal. Mayor Cavanagh and Denver Air petitioned ORD's gate director and ultimately restored operations and jet bridge service at
Gate G21.
•No Other Federal or State Funding Options Available:
DBQ Air, City of Dubuque, Dubuque County and partners continue to advocate with federal and state legislators for options to be
added to existing programs such as Essential Air Service, altering SCASD language, or starting a new program that would assist
airports similar to DBQ.
•Mainline Air Carriers (American, United, Delta, Southwest):
Mayor met with American and was told adding regional markets like Dubuque is not in their plans. They will continue to rely on
regional carriers to supply passengers to mainline airports. Matt Skinner, Dubuque Air Service Consultant, regularly meets with all
mainline carriers who convey the same message.
•Competing Regional Airports:
Cedar Rapids (CID), Madison (MSN), and Moline (MLI) are all competing for passengers and marketing their service in the Dubuque
Regional Airport catchment area.
Page 1135 of 1171
SURVEYS
December 2023, prior to pursuing daily scheduled air service a survey was part of a study to provide a detailed understanding of the want and need
for commercial air service among a variety of stakeholders and regional users
Employers: 228 Responses and 28 of those in person interviews
Strong support. Most employers (73%) support efforts to attract DBQ air service, recognizing it might require financial guarantees.
Financial support. Most employers (69%) also support the use of City and/or County funds to attract air service with voluntary private funding
efforts, 51 % support with 29% neutral.
Desired service. Chicago O'Hare is by far the leading choice for new hub airport service, followed by Dallas, Denver, and Minneapolis.
Willingness to Use. Employers estimate that they would be willing to spend an average of $142 more for a round-trip flight from DBQ as
compared to a similar flight from Chicago -O'Hare.
Economic Impacts of air service expansion:
Two-thirds (68%) expect a positive impact on their business.
Almost all (95%) expect a positive impact on the greater Dubuque area economy.
Residents: More than 8,000 responses
Strong Support. The vast majority (91 %) of respondents strongly (78%) or somewhat (13%) support efforts to attract DBQ air service.
Willingness to use. The vast majority (86%) of respondents would definitely (68%) or probably (18%) consider using DBQ if air service were
expanded to a major hub airport.
Desired service. Chicago O'Hare is the leading choice for new hub airport service, followed by Denver, Dallas, Minneapolis, and
Atlanta.
Impacts of DBQ air service expansion.
84% expect a positive impact on their household.
Almost all (97%) expect a positive impact on the greater Dubuque area economy.
Traveler Survey
July 2025 a survey targeted travelers flying through DBQ clearly indicate that people who use the service have a positive experience.
As of September 4, over 80 passengers have completed the survey.
•85% rate their experience at the airport at excellent and 10% rate is as good
•90% are very likely to recommend the airport to friends, family, or colleagues
•95% are very likely or somewhat likely to use the airport in the future
•60% of respondents were leisure travelers, 30% were business travelers and 10% were a combination of business and leisure
Page 1136 of 1171
POPULATION GROWTH
According to the 2024 US Census Bureau's population estimates Dubuque County is approaching 100,000.
Only seven counties in the state of Iowa showed a population increase of more than 900 people from 2020-2024.
Local commercial air service is needed in growing communities.
Daily commercial air service also provides a conduit to national and international students attending higher education in the tristate area:
Higher Education Approximate Student Population
•Loras College 1,600
•Clarke University 1,200
•University of Dubuque 2,190
•Emmaus Bible College 206
•Wartburg Theological Seminary 193
•Divine Word College 61
•University Wisconsin Platteville 6,696
Page 1137 of 1171
ECONOMIC DEVELOPMENT
Since July 1, 2022, Greater Dubuque Development Corporation reports there has been over $805 million in new construction in
Dubuque County with businesses creating approximately 1,000 jobs.
The continuation of local commercial air service is important to major projects already in the works, such as:
•John and Alice Butler College of Medicine: University of Dubuque officials plan to open the college in downtown Dubuque in
August 2028 and grow enrollment to about 180 students per class by 2030, eventually reaching 200 students per class for a total
enrollment of 400. Air service will be critical to recruiting and retaining students, faculty, and staff from around the country and
around the world.
•Field of Dreams: The over $80 million Field of Dreams project and all the visitors it is already bringing and will bring to the area.
This year, over 600 teams from 28 states have played or will play games in Dubuque County, with events such as skills camps
taking place at the field of Dreams movie site. In the near future, FOD officials hope to welcome more than 1,000 teams per year
thanks to the new fields.
•Expansion of the University of Dubuque Aviation Pilot Program: UD is growing the program from 350 enrolled students to
500+. Currently US is constructing a new hangar, flight center, apron and parking.
•New and Expanded Amenities and Attractions: A new Dubuque Museum of Art; development of Wanderwood Children's
Gardens; the over $100 million Chaplain Schmitt Island Development Plan, and numerous commercial, hotel, and housing projects
under construction.
Air service is imperative to keep this momentum moving forward and is an expected service in a growing community, no different than
high-speed internet, available land for growth, utilities, ground transportation and recreational space.
Page 1138 of 1171
FUNDING UPDATE
Air service is critically important to a local economy by enabling business travel and connectivity, facilitating global market access, boosting
tourism, creating jobs directly and indirectly through various sectors, and supporting the relocation of businesses and professionals by
providing vital links to the transportation network.
Using numbers based on the 2022 Iowa Airport Economic Impact Study, 2025 commercial air service is estimated to generate nearly $19
million in economic benefit for Dubuque/Dubuque County.
2025 Est Passengers
7,637
DBQ/DAC Commercial Passengers: 2025 Estimated Economic Impact
2022 Econ Output Per Passenger
$2,201
`o,,.:T9pM
Inflation 2022-25
1.13
2025 Economic
Impact
$18,994,212
98
Flight Completion Rate
9 %
O
On -Time Flights
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DUBUQUE REGIONAL AIRPORT
Page 1139 of 1171
Outside of the DOT Small Community Air Service Development (SCASD) Program, there are very few incentives or funding mechanisms
available for DBQ to attract and retain air service.
Essential Air Service (EAS) Program
Managed by the U.S. DOT, the EAS program currently subsidizes air carriers to serve approximately 60 communities in Alaska and 115
communities in the lower 48 contiguous states. Requirements for receiving EAS funding for communities were set in the Airline Deregulation
Act of 1978.
The FAA Modernization and Reform Act of 2012 provided the wording, "to remain EAS-eligible, communities must have participated in the EAS
program at some time between September 30, 2010, and September 30, 2011."
Unlike other like -sized Iowa communities DBQ was not participating in the EAS because air service at the time was self supporting and did not
need to be subsidized, therefore DBQ is currently not eligible for EAS under current DOT guidelines.
Following Iowa commercial airports were participating in the specified time frame and currently receiving EAS funding (CY 2024):
•Waterloo ALO $7.4 Million
•Sioux City SUX $5.3 Million
•Fort Dodge FOD $6.4 Million
•Mason City MSW $6.5 Million
•Burlington BRL $3.5 Million
Page 1140 of 1171
The objective from the start of any service is to reach a load factor and ticket price that sustains air service long-term without an MRG.
The morning departure and evening arrival schedule has been well received by business and leisure travelers.
Enplanements continue to grow and are trending positively with DBQ currently averaging 50% load factors.
DBQ Weekly Bookings
September 2024 to Last Week
/ ...........
In order to achieve self-sufficiency, DBQ Air Service Consultant estimates that Denver Air must attain an average load factor of 80%. To
achieve the remaining 30%, an increase of 15 passengers per flight on the current 50-seat aircraft will be necessary. Given DBQ's historical
average of around 100 passengers daily prior to the Covid pandemic, this target is attainable.
Page 1141 of 1171
Following provides financial account for the DOT Small Community Air Service Development Program (SCASDP) Minimum Revenue
Guarantee (MRG) to date and estimated expenses for maintaining air service.
SCASD Program used for Minimum Revenue Guarantee (MRG)
SCASD Funding Breakdown:
DOT
City of Dubuque
Dubuque Chamber
GDDC
Dubuque County
Travel Dubuque
Airport
IA DOT of Aviation
$1,500,000
$ 150,000
$ 100,000
$ 50,000
$ 50,000
$ 50,000
$ 40,000
$ 25,000
$1,965,000 Cash
In -Kind Contributions $ 70,195 Media vendors match
Airport Incentive Program $ 27,086 Airport fees waived
Total $ 2,062,281
Funding Payments
Invoice Total
Funding Source
November 2024
$276,608.03
SCASD Grant
December2024
$260,321.95
SCASD Grant
January 2025
$361,762.02
SCASD Grant
February 2025
$326,687.00
SCASD Grant
March 2025
$312,362.41
SCASD Grant
April 2025
$333,773.15
SCASD Grant
May 2025
$363,468.77
$28 485 44 SCASD Grant Balance and
$334 983 33 Travel Dubuque F unding
June 2025
$282,811.29
516501561 Travel Dubuque Funding and
$11 1,195 62 Economic Development Revenue
Guarantee
ADDITIONAL FUNDING NEEDED
July 2025 (5 Weeks)
$325,015.06
TBD
August 2025
$249,704.00 EST.
TBD
September 2025
$243,824.00 EST.
TBD
October 2025 (5
Weeks)
$323,155.00 EST.
TBD
TBD
November 2025
$270,424.00 EST.
December 2025
$229,824.00 EST.
TBD
Page 1142 of 1171
Additional Funding Sources and Incentives Utilized to Date:
•Travel Dubuque Board contributed $500,000 to support the MRG in August 2025
•Chamber $50,000 in marketing over two years + $15,000 in kind.
•Telegraph Herald matched Chamber $15,000 in kind
•Dubuque Initiatives committed up to $200,000 for a $100 Airfare Rebate Program for travelers who purchase round-trip airfare tickets
between August 11 and September 30, 2025.
•The Dubuque Airport Commission waived annual rates and charges to DAC according to FAAAir Carrier Incentive Program. DBQ also
provides discounted ground handling, fuel fees, consultant and marketing costs.
•The Hilton/ Q Casino provides a discounted hotel rate for DAC crew.
•The Dubuque Racing Association awarded a $100,000 Mission Grant toward marketing.
•The Dubuque Racing Association also awarded a 2-year $40,000 Core Grant toward MRG.
Denver Air Connections Incentive Programs:
•Mile High Elite Rewards: One point per flight purchased. Six points earns a one-way reward ticket to any Denver Air Connection
destination.
•Denver Air Connection's Corporate Discount Program allows businesses and organizations that travel frequently the opportunity to
receive a discount on Denver Air. Eligible businesses can receive up to 20% off all Denver Air fares for their first year in the program.
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Page 1143 of 1171
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September 15, 2025
Mayor Brad M. Cavanaugh
Dubuque City Council Members
50 W. 131h Street
Dubuque, IA 52001
Dear Mayor Cavanaugh and Members of the City Council:
OFFICE OF THE PRESIDENT
14SO Alta Vista Street
Dubuque, IA 52001
563.588.7103
On behalf of Loras College and our students, faculty, staff, parents, and alumni, I am writing to
convey our strong support for continued air service at the Dubuque Regional Airport via the
minimum revenue guarantee to Denver Air Connection.
For a regional institution like Loras with students, parents, faculty, alumni, and partners from
across the country and around the world, daily commercial air service provides daily
connectivity that supports:
• Student recruitment & retention
• Faculty & staff recruitment & retention
• Retention of talent in the Dubuque community upon degree completion
• Alumni & donor engagement
• Strategic partnerships with other regional and national institutions
• Academic and athletic travel
• Enhanced institutional visibility and accessibility
Loras College is proud to be a committed partner in strengthening the Dubuque community. We
appreciate the City's leadership on this critical issue and encourage your continued support.
While we understand the financial considerations involved, we believe that your support is a
smart investment in Dubuque's continued success. Maintaining air service is not just about
convenience, it is about positioning Dubuque as a connected city that is prepared to meet the
needs of its residents, businesses, and institutions like Loras.
Sincerely,
Michael H. Doyle, J.D. (' 91)
President
UNIVERSITY of
DUBuQuE
15 September 2025
OFFICE OF THE PRESIDENT
UDpresident@ dbq.edu
Mayor Brad Cavanagh and Dubuque City Council
City Hall
50 West 13th Street
Dubuque, Iowa 52001
Dear Mayor Cavanagh and Members of the City Council,
Local air service currently provides our community easy access to the rest of the country —
plain and simple. The effort to retain local air service with Denver Air is a vital and
necessary step to continue our success as a community of choice for residents, for local
businesses, for regional industries, and for literally thousands of undergraduate and
graduate students who come here each year to earn a degree and learn about all that
Dubuque has to offer them. By supporting our current partnership with Denver Air, we
strengthen Dubuque's competitiveness as a place to learn, work, and live, while opening
doors for residents, businesses, industries, and visitors alike.
The city's current relationship with Denver Air is, as I understand it, a step in the right
direction toward establishing a stronger, more sustainable foundation for commercial air
travel here in Dubuque. This partnership creates the opportunity for attracting additional
travel options, potentially drawing more service providers, and ultimately offering a wider
variety of travel times at affordable, competitive prices. Now is not the time to lose ground
in this strategic effort to establish local air service for our community.
For higher education, air service is especially critical. Dubuque's colleges and universities
bring thousands of students to the city each year. Many of our students —and the faculty,
staff, and coaches who guide them —come from across the United States. Without air
access, the ability to recruit and retain this talent is significantly limited. Our ability to offer
convenient and accessible air service for our students and their families is essential for
colleges and universities in Dubuque to thrive.
The reality of the "demographic cliff" often discussed in higher education circles (i.e., the
national decline in the number of college -aged students) means our local universities must
reach farther to bring students to Dubuque. Air service helps us do just that. Without local
air service, it becomes more difficult to recruit and retain students for our academic
programs and our athletic teams. Dubuque must remain directly connected to the rest of
the country by air.
The importance of connectivity extends beyond the education industry. Dubuque was
recently named by The Wall StreetJournal as one of the best places to visit in the United
States. Visitors, tourists, trade shows, conventions, and businesses need confidence that
Dubuque is accessible. For employers, reliable air service is essential to recruit and retain
talent and to connect with clients, suppliers, and investors across the country. Local
industries, from manufacturing and agriculture to healthcare and technology, depend on
strong transportation links to remain competitive in a national and global marketplace.
Supporting air service is not a subsidy; it is an investment in the long-term growth and
vitality of our region.
Denver Air provides us with a path forward. Now is the time to support this initiative and
ensure Dubuque remains a vibrant, connected city where rural meets urban, local meets
global, and opportunity meets innovation.
Sincerely,
Dr. Travis L. Frampton, Ph.D.
President
University of Dubuque
Page 1147 of 1171