Title
Agreement with Air Canada Under the Air Service Incentive Program (Ordinance S-45120)
Description
Request to authorize the City Manager, or his designee, to enter into an Air Service Development Agreement with Air Canada, in accordance with the approved International Air Service Incentive Program (Program), and to waive landing fees for a flight to Montreal, Canada and reimburse eligible marketing costs. Further request authorization for the City Controller to disburse funds to Air Canada, not to exceed USD $273,000, for reimbursement of the eligible marketing costs.
Report
Summary
On April 19, 2017, the City Council approved a new International Air Service Incentive Program to encourage the growth of international air service at Phoenix Sky Harbor International Airport (PHX).
Air Canada resumed scheduled air service between Phoenix and Montreal on Sept. 6, 2018. Montreal was Phoenix’s largest Canadian market without nonstop air service. Montreal is a qualifying city in the Aviation Department’s International Air Service Incentive Program approved by the City Council. Air Canada qualifies for benefits included in the incentive program by establishing these new flights.
Financial Impact
Per the City Council-approved Program, the City is to reimburse Air Canada up to USD $273,000 for eligible marketing costs supporting the Phoenix-Montreal route. In addition, per the Council-approved Program, the City will waive landing fees from the implementation date and up to 12 months of operation of the new flight, through May 2019. Funds are available in the Aviation Department’s operating budget.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.