United Airlines (UA, Chicago O'Hare) is likely to secure a USD600,000 a year revenue guarantee from the city of Columbia in Missouri for flights operated between Columbia, MO and Denver International. The agreement also includes a USD125,000 subsidy in the form of a waiver of landing and rental fees, and USD250,000 towards advertising, according to a City of Columbia Council memo.

United Airlines flights will commence August 1, flying 1x daily to Denver and twice daily to Chicago O'Hare on CRJ200 equipment.

Third Ward Councilman Karl Skala told the Columbia Missourian that most of the funds have already been raised. "Public money is not at risk. MU [University of Missouri] and other private companies have contributed with most of the money," Skala said.

The council memo emphases the role of the airport to the local economy, claiming that it contributes 745 jobs, USD26 million in wages, and USD87 million in goods and services. "A regional airport is also critical to the success of our existing legacy companies and attracting new businesses to our region because of the need for air service," it says.

A similar revenue guarantee was signed with American Airlines (AA, Dallas/Fort Worth) in 2012 for a sum of USD3 million, plus a subsidy of USD250,000 to waive landing fees, and USD400,000 towards advertising. That air service agreement covered flights Columbia, MO - Dallas/Fort Worth, and Columbia, MO - Chicago O'Hare. The total sum of the revenue guarantee was returned to investors in 2016, plus interest.

American Airlines is currently the sole operator out of Columbia, with a weekly capacity of almost 2,000 passengers. Earlier this year it upgauged its aircraft on the Dallas route from a CRJ700 to a CRJ900. This reflects an overall increase in passenger numbers at Columbia, with emplanements doubling from 30,000 in 2009 to 60,000 per annum in 2015. Columbia City Manager Mike Matthes told the Columbia Daily Tribune that demand remains strong. “The pinch in the pipeline right now is the terminal," he said. Plans are underway to improve the airport's terminal and facilities.

The agreement with United Airlines goes before the City of Columbia council for a vote on March 20.