ICE flights could cost budget airline operating out of LI tax breaks under proposed bill in Albany

A budget airline operating out of MacArthur Airport in Ronkonkoma that began contracting with the Trump administration in April on federal deportation flights would lose valuable tax subsidies under a bill introduced by Democratic state lawmakers, including one from Long Island.

The SAFE AIR Act, sponsored by Assemb. Michaelle Solages of Elmont and Sen. Patricia Fahy of Albany, stipulates that any airline that "transports individuals who have been detained by U.S. Immigration and Customs Enforcement without being afforded due process rights" would, in the future, not be able to contract with the state and would be prohibited from receiving state sales tax exemptions on jet fuel.

While the legislation does not identify a specific carrier, Fahy pointed to Avelo Airlines, based in Houston, which sparked widespread controversy after announcing it had signed an agreement with ICE as part of a "long-term charter program" to support the agency’s international deportation efforts.

The deportation flights will be based out of Mesa Gateway Airport in Arizona, Avelo announced in April. Mesa is one of five hubs for ICE Air, the agency’s air transport operation for deportation.

ICE, which did not respond to requests for comment, typically contracts with charter carriers for the majority of deportation flights. Avelo is believed to be the only commercial airline company to have an agreement with the Trump administration to transport immigrant detainees.

The move prompted an online boycott petition and fierce criticism from immigration advocacy groups, the union representing the carrier’s flight attendants and from the governors of Connecticut and Delaware.

Meanwhile, state lawmakers in Connecticut, one of the company's key hubs, have taken up legislation attempting to restrict Avelo from contracting with ICE on the deportation flights.

An Avelo spokeswoman did not respond to requests for comment on the bill under consideration by New York State lawmakers.

In April, Andrew Levy, Avelo's chief executive, conceded the ICE agreement "is a sensitive and complicated topic" but said the move was necessary to expand and protect the company's workforce.

The Trump administration has pledged to deport millions of people who are living in the U.S. illegally but several federal judges have ruled that the White House has failed to provide the detainees an opportunity to challenge their deportation.

Solages, chair of the Assembly's Black, Puerto Rican, Hispanic & Asian Legislative Caucus, said in an interview Thursday that many of the individuals being deported by ICE have not received due process or a hearing in front of an immigration judge.

"We're not targeting one airline," Solages said. "We're really targeting Trump's policy, which is attacking our Constitution and restricting due process for folks. We want to make sure that every individual has their constitutional rights ... Airlines that wish to contract with New York State entities and then also want to transport detainees for ICE without a valid judicial warrant and due process shouldn't be benefiting from our state."

The jet fuel subsidy, Solages said, saves airlines operating across the state about $170 million annually. It was not immediately clear if Avelo had any existing contracts with the state that could be in jeopardy under the legislation.

In an interview, Fahy said the value of the tax subsidies could have a "chilling effect" on other airlines that might consider working with ICE on deportation flights.

"This is a way to get at the pocketbook" of these companies," she said.

Gordon Tepper, a spokesman for Gov. Kathy Hochul, said she would "review any legislation that passes both houses of the legislature."

Avelo, a small low-cost airline, is one of five carriers operating out of Long Island MacArthur Airport, along with Breeze, Frontier, JetBlue and Southwest.

Formerly a charter service known as Casino Express or Xtra Airways, Avelo launched April 28, 2021 and announced in March that it would provide discount flights from MacArthur to airports in North Carolina and Florida.

The company’s business model emphasizes connecting smaller airports that are often near larger, busier travel hubs.

By Robert Brodsky

robert.brodsky@newsday.com@BrodskyRobert

Robert Brodsky is a breaking news reporter who has worked at Newsday since 2011. He is a Queens College and American University alum.