CLEVELAND, Ohio – The financial incentive that helped lure Aer Lingus to Cleveland Hopkins International Airport will likely be extended by a year, possibly in exchange for an expansion of service.
The financial incentive, which totaled nearly $12 million over three years, was key to landing new Aer Lingus service between Cleveland and Dublin. The new flight, which launched in May 2023, was the first nonstop route between Cleveland and Europe since 2018.
It currently operates four times per week, on Monday, Wednesday, Friday and Sunday.
Matt Englehart, a spokesman for JobsOhio, the private economic development arm of state government, said the agency is exploring options to expand service to more days per week.
“However, this has not been finalized,” said Englehart.
In the meantime, Cleveland City Council and Cuyahoga County Council are being asked to extend the minimum revenue guarantee agreement that helped entice Aer Lingus to Cleveland.
The extension wouldn’t cost either body any extra money. It would simply extend the existing three-year agreement, due to expire in May 2026, by about 18 months, until December 2027.
The incentive for Aer Lingus is not a grant or direct subsidy; rather, it’s a minimum revenue guarantee, payable only if the flight doesn’t meet certain monthly performance goals.
The offering of a financial incentive for new air service is a common industry practice, particularly for international routes, which are viewed as particularly risky.
It’s unclear whether Aer Lingus has collected any of the incentive money during its first 19 months of operation in Cleveland.
Englehart wouldn’t say whether the airline has received any of the revenue.
“Due to the industry’s competitive nature and the dollar amounts associated with these agreements, the agreements and amounts are proprietary,” he said.
The route has been widely viewed as very successful, with full planes flying in both directions during the busy summer months.
However, load factors – that is, the percentage of seats that are full – have not been as strong during the winter months. (The carrier typically pauses service during the slowest period, for six weeks in January and February, to perform required maintenance.)
JobsOhio, which was largely responsible for putting together the incentive package, contributed the vast majority of the $11.8 million revenue guarantee, paying $9.4 million into the fund.
Cleveland, meanwhile, pitched in $600,000 and Cuyahoga County contributed $825,000. Destination Cleveland, the Greater Cleveland Partnership and Team NEO contributed the rest.
Legislation being introduced to Cuyahoga County Council tonight asks the body to extend the agreement, with the primary goal of making “Cuyahoga County a more attractive location for private businesses to locate in by maintaining regular nonstop air service to Europe.”
Cleveland City Council is expected to consider similar legislation, as well.
Englehart said the agreement extension was initiated in response to a proposal from Aer Lingus. He added, “The partners wish to modify the agreement to achieve outcomes that we anticipate being beneficial to all parties, by expanding the service with additional flights and year-round service in addition to a fourth year of commitment.”
Cleveland Hopkins officials have been outspoken in their desire for increased flights, citing ongoing demand for travel to Ireland and beyond in their pitch to the carrier.
The Plain Dealer/cleveland.com reached out to Aer Lingus for comment.
Read more:
Cleveland to Dublin: Who flew on CLE’s new Aer Lingus route and why this European flight could work
First flight on Aer Lingus: Go to sleep in Cleveland, wake up in Dublin