DEPARTMENT: Aviation
DEPARTMENT HEAD: Russell J. Handy
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Air Service Incentive Program for the San Antonio International Airport
SUMMARY:
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.
BACKGROUND INFORMATION:
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.
ISSUE:
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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