Why Should Delaware Care?
Avelo Airlines, a low-cost startup airline, is currently the only commercial air operator in Delaware. Its arrival was widely heralded by leaders and residents alike, but it has been beset by controversy of late after contracting with the Trump administration to provide deportation flights. Despite these concerns, a regional organization continues to support the airline with public dollars.
Public money is quietly funding a half-million-dollar annual marketing campaign for Avelo Airlines’ Delaware operations, even as the company faces mounting criticism in the state and nationally for operating deportation flights for the Trump administration.
The Delaware River and Bay Authority, which has committed the public dollars to the controversial carrier, says its $500,000 annual marketing contract is not about politics, but instead meant to boost travel to the Wilmington Airport in New Castle, which for decades has struggled to maintain regular commercial flights.
Noting challenges of past carriers in Wilmington, Delaware River and Bay Authority spokesman James Salmon said his governmental body offers the incentive to any airline to be successful in the state.
He also said the DRBA, as it’s known, must manage operations at the airport in a “lawful, equitable and non-discriminatory manner.”
“The DRBA is required to permit operations by any commercial carrier that meets applicable regulatory requirements,” he wrote in an email to Spotlight Delaware.
Still, when Avelo signed its contract with U.S. Immigration and Customs Enforcement last spring, Salmon told the News Journal that DBRA officials were “disappointed” with the decision.
The DRBA is a bi-state agency created by Delaware and New Jersey to operate and maintain the region’s bridges, ferries, and airports. Its governing board is appointed by the governors of each state.
Gayle Gibson, a Newark resident and member of the Delaware Stop Avelo Coalition, said she and other critics of Avelo’s contract with ICE want to see an end to public funds supporting the airline in Delaware.
Her coalition is also lobbying the University of Delaware to stop using Avelo to fly student athletes to away games.
“If they’re not going to act or do what they can, then we keep calling for stronger actions for Avelo to leave,” Gibson told Spotlight Delaware.
Gibson said the Delaware Stop Avelo Coalition is made up of several established political and religious organizations.
Criticism from the governor, others
Houston-based Avelo entered into a contract with ICE in April to fly deportees out of the country.
The operation, dubbed ICE Air, is unusual for a commercial airline because deportation flights have been typically handled by smaller charter fleets.
Before the ICE contract, Avelo drew broad praise for its operations in the state, given Delaware’s troubled history with keeping commercial carriers.
Since then, residents and political leaders have spoken out against the airline and the state’s affiliation with it. The outcry included protests staged outside of the Wilmington Airport with demonstrators urging officials to cut ties with the airline.
Gov. Matt Meyer even joined a boycott this spring, telling Spotlight Delaware that he and his family wouldn’t be buying Avelo tickets anytime soon.
Earlier this month, the Wilmington City Council also passed a resolution urging the mayor to not enter into any agreement with companies that collaborate with, or profits from, ICE operations.
The resolution, sponsored by Councilwoman Shané Darby, names Avelo as one of the entities to avoid. Wilmington does not currently have any contracts with Avelo.
Despite the pushback, Avelo’s foothold in Delaware is expanding.
Through August, year-over-year passenger traffic at Wilmington Airport has risen nearly 10%, according to federal data.
Last week, the airline announced it would be adding flights to Atlanta and Chicago from the Wilmington Airport starting early next year. And public dollars will be used to promote the routes, per the contract that made Avelo Delaware’s commercial air carrier back in 2022.
Even more public incentives
The DRBA initiated its contract with Avelo in October 2022 shortly after a second attempt by Frontier Airlines to run commercial flights in Wilmington failed.
In its contract, the DRBA agrees to provide a marketing incentive of up to $1 million in the first year, and up to $500,000 annually in subsequent years.
Asked about the incentive, Avelo representatives deferred Spotlight Delaware to the DRBA without providing any further comment.
In his comments, Salmon also asserted that the DRBA does not use direct tax dollars but instead “user fees” to fund operations, which include money they collect from bridge tolls, ferry tickets, and airport parking.
Beyond incentives from the DRBA, the state in December 2022 also exempted Avelo from having to pay fuel taxes for three years. The incentive was valued at about $45,000 each year, according to a report from the Delaware Business Times.
The term of that exemption should be ending soon.
