Avelo Signs Five Year Deal to Launch Flights at McKinney

McKinney took a major step toward scheduled commercial air service when city leaders announced on December 16 that Avelo Airlines has formalized a five year Airline Use and Lease Agreement with an option to extend for five more years. The agreement designates Avelo as the launch carrier for the new commercial passenger terminal at McKinney National Airport TKI, covering use of runways, taxiways, aircraft parking and maintenance areas, nonexclusive terminal spaces such as check in counters and gates, and exclusive office and administrative space.

City officials described the contract as a milestone for the terminal project. Avelo will reveal specific launch dates and nonstop destinations a few months prior to the terminal opening. Earlier filings showed the airline indicated it could operate up to three daily flights from TKI using Boeing 737 aircraft with at least 149 seats. At that level the theoretical daily seat capacity would reach roughly 447 seats and about 163,000 seats annually if service ran every day, providing a practical gauge of potential passenger throughput for the new facility.

Local economic effects are multifaceted. The agreement anticipates creation of more than 100 regional jobs tied to airline operations and ground handling, while added flights are likely to generate ancillary demand for hotels, restaurants and rental car services. For Collin County taxpayers the lease payments and increased sales activity could translate into new local revenue streams, and the presence of a low fare carrier at a smaller airport may improve travel options for residents currently relying on Dallas Fort Worth and Love Field.

Policy and planning questions will move to the fore as the project advances. City leaders will need to coordinate road and parking capacity, ground transportation options, and land use considerations around the airport to manage traffic and noise impacts. The deal also reflects a broader industry trend of low fare carriers targeting secondary airports to reduce operating costs and offer lower fares, a strategy that can reallocate passenger flows across metropolitan regions.

Next steps include finalizing terminal construction milestones and Avelo announcing route and schedule details. For McKinney residents the agreement signals a near term shift in regional connectivity with measurable implications for jobs, travel convenience and local business activity.