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File #: 19-8584   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 12/12/2019
Posting Language: Ordinance approving the Air Service Incentive Program for the San Antonio International Airport to increase nonstop scheduled air service and passenger traffic and to sustain this service. This program is funded from the Airport Operating and Maintenance Fund. [Carlos Contreras, Assistant City Manager; Russell Handy, Director, Aviation]
Indexes: Aviation Air Service, Aviation Other
Attachments: 1. Air Services Incentive Agreement Final, 2. Draft Ordinance, 3. Airport Incentive Program Exhibit 1, 4. Ordinance 2019-12-12-1056
Related files: 15-3479, 16-2894




Air Service Incentive Program for the San Antonio International Airport


The Air Service Incentive Program is a tool used by the Aviation Department to encourage airlines to increase scheduled nonstop air service to and from San Antonio International Airport (SAT). The Aviation Department has revised the Air Service Incentive Program to better target routes that meet the community's travel requirements and reorganized the program to be more streamlined and efficient than its predecessor agreement. Funds in the amount of $800,000.00 are available in the FY 2020 Airport Operating and Maintenance Budget.


Domestic airports have routinely employed Air Service Incentive Programs since the 1990s. The Federal Aviation Administration (FAA) allows airports to provide certain incentives through marketing funds and fee waivers to attract new airlines and/or new service from existing carriers for new or underserved markets. The FAA maintains strict guidelines on how incentive programs are structured to retain fair market competition and also dictates where incentive funds may and may not be allocated.

The airport held an Air Service Incentive Program for SAT that was approved by City Council in November 2015, revised in May 2016, and expired on September 30, 2019.


Following a review of incentive programs at a number of peer airports, the Aviation Department has revised its program to increase competitiveness and streamline the program language.

As with the recently expired program, the new Air Service Incentive Program will offer air carrier marketing incentives and fee waivers based on criteria such as the level of service and whether the air carrier is a new carrier to SAT. Criteria is as follows:

* The air carrier must offer nonstop scheduled passenger service from SAT to an eligible market
* The carrier must p...

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