DEPARTMENT: Aviation
DEPARTMENT HEAD: Jesus H. Saenz, Jr., IAP
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Authorization of Agreements Governing Airline Operations at the San Antonio International Airport
SUMMARY:
This Ordinance authorizes the Airline Operating Agreement and Terminal Building Lease, also known as the Airline Use and Lease Agreement (Agreement), for the San Antonio International Airport (Airport), which governs an airport/airline business relationship (rates and charges) and specifies the terms and conditions for use of airfield and terminal facilities. The Agreement has an initial term of one year, commencing on October 1, 2020, with the option to extend for two additional periods. If exercised, the first extension is for a one-year period and the second extension is for a five-year period.
This action also authorizes revisions to the Airline Operating Permit for airlines who do not want to commit to the Agreement but would like to continue operating at the Airport. The revisions align the Permit with the proposed Agreement.
BACKGROUND INFORMATION:
In 2011, City Council approved the current agreement, through Ordinance 2011-11-17-0971, for an initial five-year term with the option to extend up to five additional years. This agreement, set to expire on September 30, 2020, includes provisions governing rates and charges, performance guarantees, security, insurance, environmental compliance and indemnification for signatory airlines operating at the Airport. Due to the complexity of the issues involved in these agreements and the fact that the airline representatives are in multiple negotiations with other airports, the negotiations typically require 18 to 24 months. In 2018, the City initiated negotiations to develop a new Agreement with Southwest Airlines, American Airlines, Delta Air Lines, United Airlines, Frontier Airlines, Federal Express and United Parcel Service (UPS) with the following goals:
1. Simplify the rate...
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