CASPER, Wyo. — The most recent minimum revenue guarantee, or MRG, request to the Casper-Natrona County International Airport, totaling just over $1 million, could cost the county up to $645,000.
The MRG, of which the county pays 60% and the state pays 40%, runs retroactively from Jan. 1 of this year to June 30. However, what the county ultimately pays won’t necessarily be as high as predicted. In an MRG, counties or municipalities pay the difference between what a corporation states it needs to make and what it actually makes.
“They’ve asked for the MRG, but they won’t bill it until after [June 30],” Fly Casper Alliance board chair Kaycee Witta said.
According to Witta, last year saw the county end up paying less than what it had committed to at the contract’s start.
If Natrona County refuses the MRG, Witta and airport CEO Glenn Januska agreed, the result would be Delta pulling its service out of the local airport. However, some members of the Natrona County Board of County Commissioners think the mounting costs of repeated MRGs outweigh the benefits that Delta’s service provides to the community.
“Two years ago when [Fly Casper] was developed, we were told that Fly Casper Alliance was going to be developed so that they didn’t have to keep coming back to the commission asking for money every year,” Commissioner Dave North said. “We can’t keep sustaining this.”
However, Januska argued against North’s characterization of Fly Casper’s purpose.
“I think when Fly Casper Alliance was initially formed, I don’t think it was so — and I don’t think we presented it this way — so the county would not have a financial role going forward,” he said.
Commissioner Dallas Laird said he thinks the City of Casper should contribute more to the MRG, as he said most of the local residents who use the airport are likely from Casper. In 2023, the Casper City Council committed to a one-time $50,000 payment towards the MRG, though that money was later redirected toward marketing.
“The people in the city use the airport, at much more of a percentage than the people in the county,” Laird said to Witta, “so I really wish you could put effort, or time or understanding into convincing the city they need to pay more money.”
Witta said she understands where Laird is coming from, but added that it’s a complicated issue since the airport is a county facility.
“The county is in charge of the airport, and the state has said that the state pays 40% and the county pays 60%,” she said.
Commission Chairman Peter Nicolaysen said that while he agrees with North that the mounting MRG costs are harsh, he believes the benefits do outweigh the costs. He pointed to things such as the planned Wyo Sports Ranch that is currently being constructed, the National Junior College Athletic Association National Basketball Tournament and other nationwide events hosted in Casper as reasons the county needs to maintain Delta’s service in the Casper area.
One of the other national attractions that could be coming to Casper in the near future is the Reno Air Racing Association’s National Championship Air Races. According to Nicolaysen, the association recently announced it is looking to relocate its championships out of Reno, Nevada. In looking for a new home for the races, Casper is on the short list of contenders.
Commissioner Freel agreed, adding that there are more ways to meet the minimum revenue guarantee than simply selling tickets.
“This is the first year for the [NJCAA Tournament to be hosted in Casper] and we’ve got 23 teams coming up. … A majority are probably going to be flying,” Freel said.
“It doesn’t have to be butts in seats, so to speak. It could be cargo in the base of a plane that’s going to lower this down,” he added.
Witta and Januska both reiterated that losing Delta’s service could have a devastating effect on the airport. Already, Januska said, the local airport loses about 50% of potential customers to people who drive to Denver to fly. Witta said that if Delta leaves, it opens the door for United Airlines — the other air service provider at the Casper airport — to increase ticket costs and in turn drive even more potential flyers to other airports.
Casper’s airport is one of only two airports in the state to have multiple airline providers, with the other being Jackson Hole Airport, Januska said.
On the topic of looking for other airline providers, Januska said anything is possible.
“We’ve never stopped looking [for other options],” Januska said.
