Title
From the Director, Department of Transportation and Public Works, and the Airport Director, requesting authorization to extend the lease execution deadline set under the new Master Lease Agreement of 2010 for US Airways, Inc., at General Mitchell International Airport (GMIA).
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POLICY
County Board approval is required to grant a signatory air carrier an extension to execute lease documents after December 30, 2010, at General Mitchell International Airport (GMIA).
BACKGROUND
The County Board of Supervisors approved entering into a new airline-airport use and lease agreement (File No. 10-299) for the term commencing October 1, 2010, through December 31, 2015. The Board further approved assessing Signatory rates to incumbent Signatory Airlines for the period of October 1, 2010 through December 31, 2010, with the proviso that incumbent airlines that have not signed a new Airline-Airport Use and Lease Agreement by December 31, 2010 be assessed the appropriate three-month, 25% non-signatory surcharge on fees and charges assessed between October 1, 2010 and December 31, 2010.
Airlines that executed agreements prior to December 31, 2010 include AirTran Airways, Inc.; American Eagle Airlines, Inc.; Continental Airlines, Inc.; Delta Air Lines, Inc.; Frontier Airlines, Inc.; and SkyWest Airlines, Inc. (operating for United Airlines, Inc.)
US Airways is the only incumbent signatory airline that did not execute its lease before the deadline of December 31, 2010. US Airways submitted a request to airport staff for an extension for the signatory rate provision since US Airways executed the agreement on January 5, 2011. Airport staff responded to US Airways that if US Airways could get approval from all of the other incumbent signatory carriers, then staff would make a request to the County Board of Supervisors for the exemption from the lease execution deadline and its associated penalty. Subsequently, all of the incumbent signatory airlines listed above supp...
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