HomeMy WebLinkAbout6152RESOLUTION NO. 6152 A RESOLUTION OF INTENT TO ENTER INTO AN AGREE- MENT WITH TRANS WORLD AIRLINES RELATING TO AIR SERVICE AT PUEBLO MEMORIAL AIRPORT BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: nnnmrn�i l The City Council of the City of Pueblo does hereby express its intention to enter into an agreement with Trans World Airlines (TWA) for the provision of air service at Pueblo Memorial Airport subject to the execution and delivery of a mutually acceptable definitive two year contract between the City and TWA generally providing that: (a) TWA will furnish one -stop (Colorado Springs, Colorado) air service between Pueblo, Colorado and its hub at St. Louis, Missouri on at least two flights per day, one departing Pueblo no later than 8:30 A.M. and the other arriving at Pueblo between 8:45 and 9:15 P.M., seven days per week, by jet aircraft of at least 120 passenger size. TWA will pay all normal landing fees, charges, and counter and office space rents paid to the City by other air carriers at Pueblo Memorial Airport. TWA will furnish its own ground support equipment and services. (b) TWA's Pueblo fares will be the same as those for Colorado Springs, Colorado. (c) City will guarantee annual gross revenues of $2,000,000 for such air service, provided City's maximum annual cost will not exceed $500,000, i.e., if TWA's annual gross revenues are less than $2,000,000, City will pay the difference between the $2,000,000 guarantee and actual gross revenues up to a maximum of $500,000 per year. The revenues and guarantee will be computed annually at the end of each contract year, and if gross revenues in either year exceed $2,000,000 such excess shall be credited toward any deficiency in the other year. TWA will furnish monthly revenue statements to the City. (d) The term "gross revenue" means and includes all TWA's revenues from passengers and freight using any TWA air service to or from Pueblo, Colorado and TWA's revenues from Pueblo area pass- engers who purchase airline tickets through Pueblo area travel agents using any TWA air service to or from Colorado Springs, Colorado. cPr 9 _ The City will support and cooperate with other community organizations and Pueblo area travel agents in promoting and developing a marketing program for TWA air service in the Pueblo area. ATTEST: INTRODUCED: February 22, 1988 By MIKE SALARDINO Councilman APPROVED: (4 Q - / - __ Ci Clerk Pr�ident o the CE Council -2-