DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Revisions to the Airline Operating Permit
SUMMARY:
This Ordinance authorizes revisions to the Airline Operating Permit at the San Antonio International Airport. Airlines execute the permit when they are not committing to a full term under either an Airline Operating Agreement and Terminal Building Lease Agreement or other long-term cargo airline agreement (Airline Lease Agreement). The revisions will update the insurance requirements and indemnification sections.
BACKGROUND INFORMATION:
On July 26, 1984, City Council authorized Ordinance 59073 which allowed the City Manager to grant an Airline Operating Permit to airlines operating without a long-term lease in the terminal building or cargo areas or those providing weekly or seasonal air service. The permit was last revised in 2011 in order to align with the new Airline Lease Agreement.
Two sections of the permit will be revised. (1) The amount for general liability insurance for small operators under 60,000 gross landed weight will be reduced to $50 million from $300 million. The new amount is expected to help attract more air cargo feeder operators to the Airport. (2) The indemnification section will be revised to reflect current industry standards.
ISSUE:
City Council authorization is required for revisions to the Airline Operating Permit.
ALTERNATIVES:
City Council could elect to not authorize the revisions to the permit and allowing the general liability amounts to remain for small cargo operators and not update the indemnification language.
FISCAL IMPACT:
The new general liability amount for small operators under 60,000 gross landed weight is expected to attract more businesses to San Antonio.
RECOMMENDATION:
Staff recommends approval of the revisions to the Airline Operating Permit at the San Antonio International Airpor...
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