Orange County Backs New Incentive Program to Attract Airlines to Stewart Airport

Orange County officials are supporting a new incentive program aimed at attracting additional airline service to New York Stewart International Airport by reducing the financial risk for carriers willing to launch new routes.

The initiative, known as a minimum revenue guarantee, would provide a financial safety net for airlines during the first 18 to 24 months of service if revenue falls below agreed-upon thresholds. Because federal rules prohibit airport operators from directly providing such payments to airlines, the program would be administered through the Hudson Valley Economic Development Corporation, a public-private partnership focused on regional economic growth.

Lana Bellamy, News Editor with the Times Union, said local leaders view the proposal as another opportunity to strengthen service at the airport, which is owned and operated by the Port Authority of New York and New Jersey.

“Local officials are very excited about it,” Bellamy said. Orange County Executive Steve Neuhaus believes the program could help attract new carriers and has supported a county financial commitment to the effort. State Sen. James Skoufis has also expressed hope that New York state will contribute funding, though any state support would likely be determined through next year’s budget process.

The Port Authority is currently presenting the program to airlines while details continue to be finalized. Funding is expected to come from multiple partners, including the county and state, but the Hudson Valley Economic Development Corporation would take the lead role in administering the guarantee program. Officials hope the effort will encourage airlines to establish new routes, particularly to major domestic hubs.

Stewart Airport has struggled to regain passenger traffic and airline service lost during and after the COVID-19 pandemic. Today, the airport is served primarily by Allegiant Air and Breeze Airways, though Breeze recently expanded service with a route to Raleigh-Durham, North Carolina.

Bellamy said one question she will be watching is whether additional airline service can help generate more passenger demand.

“I wonder if it’s a little bit of a chicken-and-egg problem with Stewart Airport,” she said. “If you have the airlines there, will it bring more people?”

Bellamy said many Hudson Valley residents would welcome additional options closer to home compared with traveling to larger airports in New York City or Newark.

The success of the program may not be immediately clear. Airlines would only draw on the guarantee if revenues fail to meet agreed-upon targets during the startup period. As a result, Bellamy said it will be important to see not only whether new carriers sign on, but also whether they ultimately need to use the financial backstop.

“If it does attract airlines,” she said, “how much this needs to be used” will be one of the key measures of whether the initiative succeeds.

Image Credit: The Port Authority of New York and New Jersey