Columbia deal with American Airlines called unconstitutional

2 weeks ago 5

Columbia deal with American Airlines called unconstitutional

Columbia City Council’s $1.5 million revenue guarantee for American Airlines – which includes $750,000 in taxpayer money – is unconstitutional, according to the Goldwater Institute.

Last month, the council approved the revenue guarantee that allowed the city manager to execute an air service agreement to provide roundtrip services between Columbia Regional Airport and Charlotte Douglas International Airport.

Under the agreement, American Airlines promises to provide nonstop flights at least once a day, and the city guarantees the $1.5 million for one year. Half of the money is from the Transportation Sales Tax, and the other half is private contributions. The flights are scheduled to start next week.

But the Goldwater Institute says the revenue guarantee violates the Missouri Constitution’s Gift Clause.

“Taxpayers should never be on the hook just because a major airline’s new route to their city fails to turn a profit,” Goldwater Institute Senior Attorney Tony Napolitano said in a May...

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