MS HB867

Creates the Mississippi Air Service Development Program Fund to provide grants to commercial service airports for air service expansion goals including new destinations, increased frequencies, competitive fares, aircraft upgauging, and new FAA Part 121 carriers.

Limits grant use to marketing, advertising, and risk abatement plans; prohibits purchasing airline passenger seats.

Establishes grant formula of $10 per seat per day, capped at $500,000 annually per airport, with 20% local match required (maximum 10% from in-kind sources).

Requires Mississippi Development Authority to administer the program, monitor results, and report annually to the Governor, Lieutenant Governor, and Speaker of the House.

Specifies grants must be disbursed over 12 months (35%, 25%, 25%, 15% in quarterly installments) and expended within 12 months of award; program automatically repeals July 1, 2016.