HomeMy WebLinkAbout11908RESOLUTION NO. 11908
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 must, 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, non stop, direct 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 for up to a one year Promotional Period or
until discontinuation of service, whichever occurs first.
2. Terminal rental fees will be waived for up to a 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. Fuel flowage fees for up-loaded fuel at Pueblo Memorial Airport will be waived
for up to a one year Promotional Period, or discontinuation of service, whichever
occurs first.
4. The City will provide an advertising match promoting the new destination,
provided that the cost thereof shall not exceed $30,000 during the Promotional
Period.
SECTION 4.
Resolution No. 11867 of the City Council is hereby repealed and rescinded effective
upon passage and approval of this Resolution.
INTRODUCED: June 14, 2010
BY: Judy Weaver /COUNCILPERSON
Background Paper for Proposed
R
ESOLUTION
# M-9
AGENDA ITEM
DATE: June 14, 2010
DEPARTMENT:
DEPARTMENT OFAVIATION
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.