Rule 6-1-20.28 - Guaranty Contingent upon Certain Applicant AgreementsMDA's guaranty will be contingent upon the Applicant and at least one Mississippi entity entering into an agreement whereby the Mississippi entity has guaranteed a seat block. MDA's seat guaranty will be in addition to any block of seats guaranteed by Mississippi Entities in order to reach the total number of guaranteed seats required by the Applicant.
A. The MDA guaranty will be capped at ten percent (10%) of the available seats on the aircraft identified by the Applicant in its grant application used for the New Service or Additional Service. B. Seat Guarantees supported through this program will be subject to a dollar cap negotiated within the grant agreement. MDA will consider the type of service, size of aircraft, duration and frequency of service, Return on Investment, and other factors when determining the dollar cap. C. In the event that the Applicant cannot fill the required seats with the passenger loads from its New Service or Additional Service, MDA will make a payment on its portion of the seat guaranty subject to the guidelines below. House Bill 1074, Regular Session 2016