RI Airport Corporation Announces Two Major Business Wins

RI Airport Corporation Announces Two Major Business Wins

On Thursday, the Rhode Island Airport Corporation (RIAC) announced two significant business wins. Most weeks, the airport announces new flights, routes, or awards.

 

First, Fitch Ratings has upgraded the rating on approximately $54 million of outstanding airport revenue bonds issued by the Rhode Island Commerce Corporation on behalf of the Rhode Island Airport Corporation (RIAC) from ‘A-’ to ‘A,’ with a rating outlook of “stable.”

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In announcing the upgrade, Fitch cited Rhode Island International Airport’s (PVD) robust financial position, highlighted by reduced leverage, strong coverage levels, and strong cash balances.

 

The agency also noted that passenger levels have increased, with new airline services underway to boost enplanement growth and volumes.

 

“It is heartening to know that respected credit agencies continue to affirm the wisdom of RIAC’s efforts to strengthen our airport’s long-term financial standing and build solid relations with aviation stakeholders,” said Jonathan Savage, Chair of RIAC’s Board of Directors. “This positive news reflects the coordinated efforts of federal and state leaders to support our airport and grow our state’s economy.”

 

 

 

Union Agreement

The second major announcement was that RIAC’s Board of Directors unanimously approved the 2024-2027 collective bargaining agreement with AFSCME Council 94 Local 2873. The agreement includes a 5 percent wage increase retroactive to July 1, 2024, a 4 percent wage increase in July 2025, and a 3 percent increase in July 2026. The agreement also includes a one-time bonus of $500. Compared locally, these wage increases and bonuses exceed benchmarks. This development comes on the tail of recent news that RIAC has become the country's fastest-growing airport and received its fourth credit rating increase in 2 years. 

"We are pleased this matter has been finalized and has resulted in a positive outcome for all parties. Both the union and management agreed to enter into mediation last month, which proved to be a highly successful vehicle for resolving our differences," stated Iftikhar Ahmad, President and CEO of the Rhode Island Airport Corporation. "We value our union employees and the collective role they play in the accomplishments we have had in recent years. This contract properly reflects their services and commitment to RIAC's overall mission."