HomeMy WebLinkAbout11867RESOLUTION NO. 11867
A RESOLUTION ESTABLISHING AIRLINE INCENTIVES
FOR NEW SCHEDULED AIRLINE PASSENGER SERVICE AT
PUEBLO MEMORIAL AIRPORT
WHEREAS, the City of Pueblo recognizes the need to attract new scheduled airline
passenger service to Pueblo Memorial Airport; and
WHEREAS, it is necessary to establish a new scheduled airline service incentive
program; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
An incentive opportunity period of 120 days, commencing on the date of passage of this
Resolution, is hereby established during which any Part 121 air carriers may seek and obtain
incentives for a promotional period by meeting the incentive criteria set forth in Section 2 of this
Resolution ( the "Opportunity Period ").
SECTION 2.
Any 14 CFR, Part 121, FAA certificated Air Carrier shall be eligible to receive temporary
promotional incentives to operate out of Pueblo Memorial Airport provided the following
conditions are satisfied:
1. The Air Carrier musk within the Opportunity Period, enter into a lease with the
City of Pueblo which includes the City's standard air carrier lease terms, except as
modified by the incentives authorized herein.
2. The Air Carrier must agree to provide a minimum of 2 departures per week,
commencing within 30 days of the effective date of the lease.
3. The Air Carrier must initiate new commercial air service to destinations not
currently being served at the Airport.
SECTION 3.
The following incentives shall be offered during the Promotional Period, not to exceed
one year, to any Part 121 certificated airline who satisfies the conditions set forth in Section 2 of
this Resolution:
1. Airport landing fees will be waived during the one year Promotional Period or
until discontinuation of service, whichever occurs first.
2. Terminal rental fees will be waived during the one year Promotional Period or
until discontinuation of service, whichever occurs first. Terminal rental, for
which fees are waived, shall include a maximum of two ticket counter positions,
a baggage makeup area, and administrative support space.
3. The City will provide advertising promoting the new destination, provided that
the cost thereof shall not exceed $30,000 during the Promotional Period.
INTRODUCED: April 26, 2010
BY: Leroy Garcia
COUNCILPERSON
APPROVED:
RESIDENT CF CITY CC) UNCIL
ATTESTED BY:
MY CLERK
Background Paper for Proposed
RESOLUTION
AGENDA ITEM # M -1
DATE: April 26, 2010
DEPARTMENT: DEPARTMENT OF AVIATION
MARK LOVIN. DIRECTOR
TITLE
A RESOLUTION ESTABLISHING AIRLINE INCENTIVES FOR NEW SCHEDULED
AIRLINE PASSENGER SERVICE AT PUEBLO MEMORIAL AIRPORT
ISSUE
Should City Council establish incentives to attract new scheduled airline passenger service to the
Pueblo Memorial Airport.
RECOMMENDATION
Approval of this Resolution.
BACKGROUND
The Federal Aviation Administration, recognizing the need for communities to encourage new
air service, permits airports to offer financial incentives to air carriers for initiating new service.
Incentives must be temporary, limited in scope, non discriminatory to air carriers offering like
service, and ineffectual to the financial sustainability of the airport. Airports are not permitted to
pay air carriers utilizing operating funds but are permitted to waive specific fees for a defined,
temporary timeframe.
FINANCIAL IMPACT
Based upon the average landing weight for narrow body aircraft (150 seats), eight flights per
month, and terminal space rates, the financial impact to yearly airport revenues will be $55,071
per year.