WARWICK – Rhode Island aviation officials on Wednesday celebrated the progress made by Breeze Airways at Rhode Island T.F. Green International Airport, which has met several previously set benchmarks included in its 10-year memorandum of understanding with the state in 2023.
And now, the company that made T.F. Green its base of operations is accelerating its expansion, adding multiple new routes with the goal of adding additional international flights and Rhode Island-based jobs.
Gov. Daniel J. McKee said Breeze’s “expanding its footprint” in Rhode Island “will bring in more economic activity, more good-paying jobs, more routes, more visitors, and help set Rhode Island up as a true destination state.”
The company plans to double its growth in weekly service from T.F. Green to both current and future markets, including the addition of international destinations – over the next five years.
During an exclusive interview with Providence Business News on Tuesday, Iftikhar Ahmad, CEO and president of R.I. Airport Corp., called the development a “game-changer” for the airport and by extension, the state.
“Breeze is very bullish on Rhode Island,” he said, adding that a spike in destinations by the budget airline should help to lower prices offered by other competing airlines.
Breeze has expanded its service to 132 weekly flights to 18 destinations, becoming the largest airline at T.F. Green in terms of destinations served.
The agreement with the state included goals to create between 200 and 250 jobs in Rhode Island within the first five years, which Breeze has now exceeded. The company promised to secure at least 44 flights per week, but now provides 120. The memorandum of understanding included at least one “westward” flight, though Breeze currently has two, San Diego and Los Angeles.
Under the 10-year tax credit structure, the company had to create a minimum of 58 jobs in the first year.
Breeze received nearly $2.3 million in incentives for fiscal year 2023 to pay for destination marketing and ground operations. The company will be eligible for an additional $3 million in tax credits under the Qualified Jobs incentive program.
The second memorandum of understanding lays out additional benchmarks over the next five years, including the addition of six planes – double the current amount – all based at T.F. Green that will serve 1 million passenger flights annually, both nonstop and to “underserved “ destinations. Breeze is aiming to add three international flights and seven domestic flights “west of the Mississippi,” said Ahmed, and increase the number of jobs to 400. The company will also increase the number of weekly flights to 200, up 60 from the current amount.
For its part, the state has agreed to provide an additional $1.02 million of ground handling support for the first two years. It will also promote and market the state through R.I. Commerce Corp. with $1.2 million annually in funding over the next five years.
Ahmad said the marketing piece is paramount to long-term success, particularly in smaller markets where residents and travelers may still "confuse Rhode Island with Long Island."
“It is a wonderful success story, not just for the airline, but for Rhode Island and all of southern New England,” said Ahmad. “Breeze Airways exceeded expectations for enhanced air service and expanded employment, and we look forward to the continued growth of new jobs and new routes to new destinations made possible through this agreement.”
Potential new domestic destinations include Dallas, Phoenix, Las Vegas, Seattle and Salt Lake City. International possibilities include Bermuda, Montego Bay, Aruba and Cancun, among others.
Ahmad said since 2017, T.F. Green has realized a 217% increase in nonstop flights and a 28% increase in airlines, with a total of 37 nonstop destinations. It will soon be eclipsing 2019 numbers.
Breeze must commit to being in the state 20% longer than the length of the tax credit it receives, meaning it must commit to being in the state for 12 years.
Breeze founder and CEO David Neeleman attributed the company’s success “to support we have received from many of our airport, government and community partners” in Rhode Island, who “have unwavering support and belief in what we are building.”
Ahmad said Breeze Airways in the next three years will be pursuing “interline agreements” with international carriers to allow the airport to become a connecting hub for the airline and its partners.
(UPDATE: Additional comments added throughout)
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
