Some small NC airports get more federal coronavirus aid than larger ones. Here’s why
When the federal government awarded coronavirus bailout money to airports this week, North Carolina’s two largest, in Charlotte and the Triangle, got the biggest grants.
But from there the pattern broke down. Two small commercial airports in Eastern North Carolina — Pitt-Greenville and Coastal Carolina Regional — received more money than airports in the Triad or Asheville, even though they serve far fewer passengers.
Pitt-Greenville Airport, for example, where about 51,500 passengers boarded flights in 2018, received nearly $18.1 million from the Coronavirus Aid, Relief and Economic Security or CARES Act passed by Congress in late March.
Piedmont-Triad International Airport, which served about 939,000 departing passengers that year — 18 times as many — received $16.4 million.
The Federal Aviation Administration says political connections or favoritism had nothing to do with the way the $10 billion in aid to airports was divvied up.
Instead, it says, the allocations were based on a formula that takes into account not only passenger boardings or enplanements in 2018 but also an airport’s debt and the cash in its bank accounts.
“The number of enplaned passengers is only one of several metrics used to determine an airport’s business and financial situation,” the agency said in a written statement. “Comparing the final allocations among airports based solely on enplanements does not tell a complete or accurate story.”
The CARES Act aid is meant to help airports remain viable after the coronavirus outbreak nearly wiped out demand for air travel. The revenue airports receive from parking, rental cars, concessions and ticket and airline fees have declined sharply since mid March.
North Carolina airports stand to receive nearly $284 million from the CARES Act. The largest share, $135.5 million, will go to Charlotte Douglas International Airport, the country’s 12th largest airport in 2018, with more than 22 million boardings.
Raleigh-Durham International Airport, the country’s 39th busiest airport that year with about 6.3 million boardings, will receive $49.6 million.
But passenger volume determines only half of the grant allocation for commercial airports. Debt and the ratio of cash to debt each account for a quarter, providing help for airports facing big debt payments and rewarding those with strong balance sheets.
Smaller airports that don’t levy facility fees on each ticket were also given allocations from a separate pot of money.
The result is that Coastal Carolina Regional Airport in New Bern will receive $18.7 million, or about $4 million more than Asheville Regional, which served more than five times as many passengers.
At Pitt-Greenville, the $18.1 million is more than the airport would expect to receive in revenue in more than five years. Executive director Bill Hopper says the airport operates on about $270,000 in revenue each month, which has dropped to less than $60,000 since the COVID-19 outbreak forced American Airlines to cut its daily departures to Charlotte from five to two.
Hopper said the airport doesn’t have long-term debt but also doesn’t have a large bank account, so the federal help is welcome.
“This is what’s going to keep the lights on,” he said. “Our revenue had gone down tremendously.”
U.S. Rep. David Price of Chapel Hill, a Democrat who heads the House Transportation, Housing and Urban Development Appropriations Subcommittee, said Congress came up with the allocation formula after consulting airports, the FAA and others in the aviation industry and that it is designed to “approximate emerging airport needs in an equitable way.”
In a written statement, Price said the formula could be changed if airports need more money from the federal government because of COVID-19.
“I will continue to examine how these dollars are distributed and utilized,” he said. “If additional funding is necessary, Congress can make adjustments to formulas in any future legislation to ensure airports of all sizes have the assistance they need to maintain operations.”
