KTIV News 4 Sioux City IA: News, Weather and SportsDelta says it can't afford to do business in Sioux City

Delta says it can't afford to do business in Sioux City

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Sioux Gateway's only air carrier is asking for money from the federal government to stay in town.  The airline was quite candid Friday, saying they would pull out if they don't get a federal subsidy.    

Sioux Gateway is one of 24 airports the company says are under performing.

Delta claims flights out of Sioux City are usually half full.  That's compared to Delta's national average of 83-percent.

Airport Director Curt Miller says Delta's planes are just too big.

"This year our emplanements are up 26% over last year's activity. We went from the 35 seat propeller to the 50 seat jet.  I fully believe that we wouldn't be having this discussion today if Northwest were still the ones providing our service," Miller explained.

It's not uncommon for airlines to ask for a federal subsidy to maintain service in under performing markets.

Delta says, "the reality of mounting cost pressures faced by the airline industry means we can no longer afford to provide service."

Miller is looking at it as an opportunity for Sioux City to get a new airline to town.

"We've made offers.  There's offers out on the table right now. We have a market here that wants more service, and with the right service and a competitive price, we could fill airplanes up here."

Just this week the state approved a $30-thousand airport grant for Sioux City.

They received half a million dollars from the federal government last year.  They were hoping to create an incentive package to bring a second airline to town, though they may now be looking for a first.

Small municipal airports, like Sioux Gateway, qualify for the essential air service subsidy, which means there will always be one airline providing two flights a day out of Sioux Gateway.  If Delta pulls out, the federal government will bid the service out to another airline.

It's interesting to note that the U-S House voted to eliminate this program. However, the Senate kept it alive.

We'll know in the next 90-days whether Delta will get the federal subsidy or be replaced.

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