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Committee advances rental car fee to pay for low-cost airline incentives

30.04.10

A new 5% fee on rental cars that would create an incentive fund to help attract low-cost airlines to Charleston won approval Thursday from Charleston County Council’s Economic Development Committee.

Some council members who usually oppose new fees and taxes supported the measure, making it appear likely to pass when the full council takes it up Tuesday.

“I generally have been opposed to fee increases, but this seems to be a wonderful investment,” said Councilman Paul Thurmond.

However, the local airline incentive fund, expected to generate $1.5 million annually, is not enough on its own to draw a low-cost carrier to Charleston, said Councilman Elliott Summey, who chairs the committee. Summey said he could not say how much money would be needed.

The 5% fee is proposed by a group of local officials working to recruit a low-cost airline to Charleston. Air fares have increased locally since AirTran Airways left the market in December.

Source: Charleston Regional Business

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