NEW WINDSOR -State Senator James Skoufis says a new financial tool could help attract major airlines and new routes to New York Stewart International Airport, which has struggled to expand commercial air service.

Skoufis, D-Orange County, said he has been working since late last year with the Port Authority of New York and New Jersey and the Hudson Valley Economic Development Corp. to develop a minimum revenue guarantee, or MRG, fund designed to reduce the financial risk airlines face when launching service from smaller regional airports.

“I’m as frustrated as the next Hudson Valley resident regarding the lack of flights out of Stewart Airport,” Skoufis said. “That said, there is a major reason to be hopeful this is about to change.”

Under the proposed MRG program, a fund will provide airlines with financial protection if a new route fails to generate an agreed-upon level of revenue. Skoufis said his office would make a “meaningful commitment” to the fund, although he did not disclose a specific amount.

Skoufis said smaller regional airports can present greater financial risks for airlines than major airports such as John F. Kennedy International, LaGuardia and Newark Liberty International airports, particularly following changes in the aviation industry after the COVID-19 pandemic.

He said the MRG would allow Stewart to offer a financial backstop to airlines considering new routes.

As an example, Skoufis described a hypothetical airline that requires $5 million in annual revenue to operate a route from Stewart to a major national hub. If the route generated $4.8 million in its first year, the MRG could cover the $200,000 shortfall. If revenue exceeded the target in a subsequent year, the airline could repay the fund under the terms of the agreement.

Skoufis said the proposed fund would be structured as a revolving fund, and discussions have already taken place with a major airline about establishing a new route from Stewart to a national hub. He did not identify the airline or the potential destination.

The goal, he said, is to establish service to major airline hubs, allowing passengers from the Hudson Valley to reach destinations across the country through a single connecting flight.

The Hudson Valley Economic Development Corp. is expected to administer the MRG program and coordinate funding, Skoufis said. Federal law prohibits the Port Authority from serving as the administrator, he said.