Mayors Madeline Rogero and Tim Burchett announced Wednesday how money will be spent as part of their Competitive Airfare Partnership plan.
The plan is expected to help lower airfare prices at McGhee Tyson Airport to make it more competitive with surrounding airports.
Together, Rogero and Burchett set aside nearly $400,000 between the two budgets for CAP, and nearly $650,000 in total funds.
Senior Director of Communications Angela Starke says the money will not be used to actively pursue an airline, but will instead be used when an airline becomes interested in using McGhee Tyson. At that point, funds will be used to help an airline market itself here or be used to help with gate fees.
The initiative is part of an Innovation Valley strategy to encourage business relocation and industrial development efforts.
The Knoxville Chamber claims similar initiatives in regional markets have been successful at lowering airfare costs.