A travel agency in Minneapolis is signing a multiyear, multi-million dollar deal to buy a portion of the Minneapolis airport, bringing the company’s portfolio to include the Twin Cities metro area.
Airlines like JetBlue and Spirit Airlines, which fly to Minneapolis, have struggled to compete in recent years as well as in the Midwest as a whole, with several large airports serving the metro area, including Minneapolis-St. Paul International Airport.
The deal with the Minneapolis-based Travel Agency signboards and Travel Agency Minneapolis (TAM) comes as the airline market continues to recover from the hurricanes and pandemic.
TAM, which operates a number of Minneapolis-area airports, is one of several new carriers to join a growing list of U.S. airlines, including Frontier Airlines and United Airlines, to be added to the airline’s portfolio, which includes more than 1,000 destinations.
It will bring TAM’s portfolio of flights to more than 2,000 Minneapolis airports and serve a total of more than 8,400 destinations, including more than 300 of the Twin City metro area’s major airport hubs.TAM also is adding a number, including a number from its core Chicago-based Chicago-Arrow City route, to its Minnesota hub, which will also include flights from Chicago-JFK International Airport, Chicago-Gulfport International Airport and Minneapolis-Minneapolis International Airport.
“Our mission is to help travelers get the best value, most efficient, most reliable service possible.
So our partnership with TAM represents a tremendous opportunity to work together to help our customers have the best experience,” TAM CEO Andrew Farr said in a statement.
The agreement, which is worth $200 million, will give TAM a share of a Minneapolis-Westport-Goshen Airport that currently is owned by Chicago-O’Hare International Airport (CHI).
TAM will acquire a 10% stake in CHI and pay a $50 million cash payment to the airport, according to the deal.
The airport is the largest domestic hub in the United States, with more than 15 million passengers a day.
It also hosts about 4 million of the airline passengers who use the airport each day.
TAM said it has invested in infrastructure and is investing in new technologies to serve its customers better.
The deal follows a $200.4 million deal last year to buy out a majority of a Chicago-area Minneapolis-Argonne Airport, which had been owned by the airport operator.
The deal with TAM comes a week after Chicago-Oakland International Airport agreed to sell its Chicago-Syracuse Airport, with a $100 million cash deal.
Other airports joining TAM in the U.s. airports portfolio include Los Angeles-Tacoma International Airport ($100 million), Miami-Fort Lauderdale-Hollywood International Airport at Port Canaveral ($100.5 million), and Dallas-Fort Worth International Airport-Dallas ($100 Million).TAM’s Minneapolis-Gresham-Brookline-East St. Paul airport has been on TAM’s radar for a number a years and was announced in February 2016 as the company was looking to expand its footprint in the region.