Title
Airline Use and Lease Agreement
Action
Action:
Approve an Airline Use and Lease Agreement in the form presented for a 10.5 year term beginning on January 1, 2027,
Authorize the City Manager to execute a five-year extension per the terms and conditions set forth in the Airline Use and Lease Agreement, and
Authorize the City Manager to execute the Airline Use and Lease Agreement by and between the city and a qualified commercial airline at any point during the proposed term.
Body
Staff Resource(s):
Haley Gentry, Aviation
Ted Kaplan, Aviation
Mike Hill, Aviation
Explanation
The current Airline Use and Lease Agreement (AULA) was entered into on July 1, 2016, for a 10-year term ending June 30, 2026. The original Signatory Airlines to the 2016 AULA consisted of American Airlines, Delta Air Lines, United Airlines, Southwest Airlines, and JetBlue Airways Corporation.
During the term of the 2016 AULA, the city entered into agreements with Spirit Airlines, LLC and Frontier Airlines to become Signatory Airlines as well. The city subsequently terminated its agreement with JetBlue Airways Corporation in 2024 and Spirit Airlines, LLC in 2026.
The city began negotiating a successor agreement to the 2016 AULA in 2024. To allow additional time for completion of this negotiation, the city and the Signatory Airlines extended the 2016 AULA for up to one year through June 30, 2027.
The city and the Signatory Airlines ultimately reached agreement on a new AULA in principle in early Fall 2026.
City Council received an overview of the proposed AULA at the October 12, 2026, Business Meeting.
The proposed AULA will be for a 10.5-year term beginning on January 1, 2027, and extending through June 30, 2037. The proposed AULA contains an option for an additional five year extension upon the satisfaction of certain terms and conditions including airline commitment to additional capital investment. The proposed term is consistent with agreements negotiated by peer airports wit...
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