The Duluth International Airport aviation business cluster: The impact of COVID-19 and the CARES act

The COVID-19 pandemic struck the U.S. aviation sector in March 2020, reducing air passenger volumes by more than 50 percent versus March 2019. Airlines dramatically reduced available seat miles, leaving airports nearly vacant as the pandemic took hold. The Federal government responded with the Coronavirus Aid, Relief, and Economic Security (CARES) Act that provided aid and relief to airlines and airports. The Act generally achieved its intended purpose as a stopgap measure, but not all segments of the nation's aviation industry received immediate relief. Utilizing data from the Duluth Airport Authority, airport tenants, as well as governmental sources, this study examines the economic impact of the pandemic during 2020 on businesses in the Duluth, Minnesota, aviation business cluster and the efficacy of Title XII under Division B of the CARES Act in addressing the adverse effects of the pandemic on the Duluth aviation cluster. This paper does not make a judgment whether future relief packages should or should not be offered.