Volusia County Council Approves Promotion Agreement with Avelo

Volusia County could end up being the wind beneath the wings of ultra-low cost airline Avelo as the company begins service at Daytona Beach International Airport.

The County Council approved a co-promotional agreement with Avelo that sets aside $1 million over the next two years to assist the airline in adding Daytona Beach to its scheduled flights.

The agreement, also known as a minimum revenue guarantee, is designed to mitigate the risks of starting a new route, according to Cyrus Callum, Volusia County director of Aviation & Economic Resources and acting economic development director.

“There are a lot of up-front costs (and) there is some financial risk involved” for the airline, Callum said. “There are particular things airports are allowed to do but only for a particular time period and it has to be fair and equitable.”

Callum said minimum revenue guarantee agreements have been used by the county in the past.

“Every airline has had to have access to the program,” he said.

Beyond helping to bring Avelo to the Daytona Beach market, Callum said it sends a signal to other potential airlines looking to enter or expand their presence in the Florida market.

“Lots of airlines like to see there is community support,” he said. “It is pretty much putting other airlines on notice that Daytona Beach is ready to compete with surrounding airports. And it allows the community to participate in the development of the airport.”

Callum said bringing more carriers to the airport enhances the facility’s role as an economic driver for the county.

“Airports are huge in terms of what they do for economic development,” he said.

Callum said a soon-to-be released study from the Florida Department of Transportation on the economic impact of airports in the state shows just how important they can be for a community.

“Two years ago we were somewhere in the neighborhood of $2.1 billion in economic impact,” he said. “In the study that is going to be released shortly we’re somewhere in the neighborhood of $3.2 billion in economic impact.

With travel and tourism on the rebound from the Covid-19 pandemic and visitors to Florida on the rise, Callum said the addition of Avelo makes Daytona Beach and Volusia County a more attractive destination for travelers.

“Having an ultra-low cost carrier in the market kind of helps level the playing field and it gives us an opportunity for our airport users to have more comfortable fares in using our market,” he said. “It’s a great thing for the area.”