Commercial Air Service Minimum Revenue GuaranteeCity of Dubuque
City Council
ACTION ITEMS # 1.
Copyrighted
December 1, 2025
ITEM TITLE:
Commercial Air Service Minimum Revenue Guarantee
SUMMARY:
City Manager providing follow-up information on the
Commercial Air Service Minimum Revenue Guarantee and
recommends City Council receive and file the information and
be prepared to take final action at the December 15, 2025
City Council meeting.
SUGGUESTED
Receive and File; Place on December 15, 2025, Agenda
DISPOSITION:
ATTACHMENTS:
1. MVM Memo
2. Dubuque Airport Commission Notice of Termination Draft Correspondence
3. Public Input —Uploaded 12.1.25
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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: November 25, 2025
INTRODUCTION
Dubuque
All -America City
IIr
I11.
2007.2012.2013
2017*2019
The purpose of this memorandum is follow-up to October 6, 2025, City Council meeting.
At that meeting, staff provided an update on commercial air service and Denver Air
minimum revenue guarantee (MRG) providing daily air service to O'Hare (ORD) Airport
in Chicago.
BACKGROUND
Prior to restoring commercial air service, the non-profit DBQ Air and partners reviewed
data, and performed community surveys and business meetings.
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. For Denver Air to be
financially independent requiring no minimum revenue guarantee they need to have
40% (40) of those 99 customers fly out of Dubuque daily.
According to 2022 Mead and Hunt Study using Global Distribution System and Airline
data there are 176,498 passengers in Dubuque Catchment area (approximately 30-40
minutes from Dubuque). Passenger demand each way (PDEW) data indicates
approximately 505 passengers fly out of an airport to a destination from Dubuque
Catchment area daily.
SURVEYS
In 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 were 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.
Page 811 of 1214
Employer & Resident Surveys
Employers Survey: 228 Responses and 28 interviews
Strong Support. Most employers (73%) support efforts to attract Dubuque
commercial 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, 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 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 Survey: 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 Regional Airport 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.
After service was restored DBQ Air continued to survey customers.
Dubuque Regional Airport Traveler Survey
Results from a survey targeted toward travelers flying through Dubuque indicate that
people who use the service have a positive experience.
Here are some key results:
• 88% rate their experience at the airport as excellent and 8% rate is as good
• 93% are very likely to recommend the airport to friends, family, or colleagues
• 96% are very likely or somewhat likely to use the airport in the future
• 58% of respondents were leisure travelers, 29% were business travelers, and
13% were a combination of business and leisure
2
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DISCUSSION
Current enplanement and MRG funding data.
Enplanement:
To attain self-sufficiency, DBQ Air Service Consultant estimates Denver Air will need to
reach an average 80% load factor. The last full month, October 2025, the load factor
was 53%. On a 50-seat regional aircraft, an additional 13 passengers per flight is
needed to reach 80%.
DENVER AIR ENPLANEMENTS
2024
2025
January
382
February
412
March
531
April
459
May
630
June
595
July
640
August
694
September
767
October
786
November
461
December
476
Yearly Totals
937
5,896
Minimum Revenue Guarantee (MRG):
SCASD and
Partner Contributions
Invoice
Estimated
Funds
Needed
Actual
Payment Details
November 2024
$276,608.03
SCASD
December 2024
$260,321.95
SCASD
January 2025*
$361,762.02
SCASD
February 2025
$326,687.00
SCASD
March 2025
$312,362.41
SCASD
April 2025*
$333,773.15
SCASD
May 2025
$363,468.77
SCASD $28,485.44 + Travel Dubuque $334,983.33
June 2025
$282,811.29
Travel Dubuque ($165,016.67) + Economic Development Revenue
Guarantee $117,794.62
July 2025*
$325,015.06
Economic Development Revenue Guarantee
August 2025
$237,762.97
Economic Development Revenue Guarantee
September 2025
$235,434.77
Economic Development Revenue Guarantee
October 2025*
$288,394.24
Economic Development Revenue Guarantee $30K less than estimate
November 2025
$255,024.00
Forecast DAC Invoice
December 2025
$255,024.00
Forecast DAC Invoice
January 2026*
$331,030.00
Forecast DAC Invoice
February 2026
$262,304.00
Forecast DAC Invoice
March, 16 2026
$115,332.00
Forecast DAC Invoice
December 16 - March 16, 90 day notice ='/z March estimate
1 $1,218,714 1 $3,604,401.66 1
*Five Weeks
Fund
Balance
SCASD $1.9M
$0.00
Travel Dubuque $500,000
$0.00
Dubuque Count $100,000
$100,000.00
Economic Development Revenue Guarantee $2.4M
$1,195,598.34
Business Community Fundraising
$ December 10, 2025
$1,583,992.58
3
Page 813 of 1214
The Dubuque County Board of Supervisors has allocated $100,000 towards the MRG,
leaving the business community to contribute $650,000. If the City Council decides on
December 15, 2025, to direct the Airport Commission to issue 90-day notice to Denver
Air that the MRG payments will end, the goal will be to not spend the money offered by
Dubuque County.
The Greater Dubuque Development Corporation and the Dubuque Area Chamber of
Commerce are reporting limited success in raising $650,000 (now that Dubuque County
has offered $100,000) as a match for the City's $750,000, but efforts continue at this
time.
At the December 15, 2025, City Council meeting, the City Council could review the
amount of money raised from the business community, and review current numbers on
Denver Air enplanements and the actual demands on the MRG fund through that date
to help determine how many more months it is anticipated that the MRG can be paid.
That review will be especially important because of the 90-day notice requirement if the
City is going to stop paying the MRG to Denver Air. Denver Air has agreed that if they
do receive a 90 day notice of termination that they will make every effort to relocate
aircraft and flight crew, so that the City would not need to pay the MRG to the full 90
days.
Dubuque Regional Airport Commission Air Service Subcommittee is recommending to
Airport Commission at the Tuesday, December 2, 2025, meeting, Airport Director
continue communications with Denver Air regarding minimum revenue guarantee status
and in coordination with City Council invoke contractual actions required per agreement.
ACTION TO BE TAKEN
I respectfully recommend the Mayor and City Council receive and file this information
and be prepared to take final action at the December 15, 2025 City Council meeting.
Michael C. Van Milligen
MCVM:td/jm/sv
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Todd Dalsing, Airport Director
0
Page 814 of 1214
Q swiw-
DUBUQUE REGIONAL AIRPORT
11000 Airport Road + Dubuque, Iowa 52003
Tel:563-589-4128 Fax:563-589-4108
www.flydbq.com
Airport Commissioners + RJBlocker Mike Phillips Ron Vaughn Mariann Kurtz Weber Bob Woodward
December 2, 2025
Key Lime Air d/b/a Denver Air Connection
13252 E. Control Tower Road
Englewood, CO 80112
To Whom It May Concern:
This letter serves as official notice of termination of the contract between Key Lime Air
d/b/a Denver Air Connection and the City of Dubuque by and through its duly
authorized Airport Commission. This notice is sent pursuant to the requirements of
Section 11 of the Air Services Agreement entered by the parties in September 2024.
The termination will be effective ninety (90) days from the date of this letter, March 2,
2026, unless we can mutually agree to an earlier termination date. The termination is
being executed for convenience, meaning it is not due to any fault or performance
issue on your part, but due to the unfortunate position the City finds itself in as excluded
from eligibility for the Essential Air Service program.
During the ninety (90) day notice period, we know you will continue fulfilling your
contractual obligations to the best of your abilities. We would like to begin discussion
at your earliest convenience related to the transition and whether March 2, 2026, is the
final date or whether an earlier date is agreeable.
For any questions or clarifications regarding this notice and to set up discussion of the
transition, please contact Todd Dalsing, Airport Director. We appreciated the
partnership with Denver Air Connection.
Sincerely,
Mike Phillips
Chair, Airport Commission
cc: Todd Dalsing, Airport Director
Brad M. Cavanagh, Mayor
Michael C. Van Milligen, City Manager
Crenna Brumwell, City Attorney
Page 815 of 1214
Adrienne Breitfelder
From: City of Dubuque <noreply-dubuque@gscend.com>
Sent: Sunday, November 30, 2025 12:20 PM
To: Adrienne Breitfelder
Subject: A new Service Request has been created [Request ID #228383] (Contact City Council) -
Dubuque, IA
Caution! This message was sent from outside your organization. Never give your login Allow sender I Block sender
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Dubuque, IA
A new service request has been filed.
ID 228383
Date/Time 11/30/2025 12:20 PM
Type Contact City Council
Address Dubuque
Origin Website
Comments I am hoping that all of you continue to strongly
support and find ways to keep the Dubuque
Airport open. I don't mind paying for schools and
emergency services, etc ... and paying a tax to
keep the local airport functioning is also a service
that I feel is worth the money. Thank you for all
you have done to bring it back and hopefully
keep it going. - Elaine Kray
Submitter Kray, Elaine J
3095 Lindale St
Dubuque, IA 52001
563-556-8155
ejkray@aol.com
Dubuque, IA
1
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