CASPER, Wyo. (AP) — Wyoming officials are studying whether they should enter into contracts directly with airlines to guarantee a certain level of air service in the state.

The capacity purchase agreements would guarantee airlines a certain payment and set flight frequency, price and destination.

Wyoming Department of Transportation director Bill Panos says it would be a public-private partnership that could reduce the amount spent to ensure air service to small cities.

Commercial air service in most Wyoming airports is now subsidized by government revenue guarantees that help airlines cover any shortfalls from serving smaller airports.

Allegiant Air announced last week that it would stop service from Casper to Las Vegas.

The transportation department is completing a study of the plan and a legislative committee has agreed to form a working group to look at it.

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