Title
Agreement with Condor Flugdienst GmbH Under the Air Service Incentive Program (Ordinance S-45121)
Description
Request to authorize the City Manager, or his designee, to enter into an Air Service Development Agreement with Condor Flugdienst GmbH (Condor) and to waive general fees and to reimburse eligible marketing cost for a flight to Frankfurt, Germany, in accordance with the approved International Air Service Incentive Program. Further request authorization for the City Controller to disburse funds to Condor, in an amount not to exceed USD $477,000.
Report
Summary
On April 19, 2017, the City Council approved a new International Air Service Incentive Program (Incentive Program) to encourage the growth of international air service at Phoenix Sky Harbor International Airport (PHX).
Condor will resume scheduled air service between Phoenix and Frankfurt on May 4, 2019. Frankfurt is Phoenix’s second-largest European market without nonstop air service. Frankfurt is a qualifying city in the Incentive Program. Condor qualifies for benefits included in the Incentive Program by establishing these new flights.
Financial Impact
Per the City Council-approved Incentive Program, the City is to reimburse Condor in an amount not to exceed USD $477,000 for marketing costs. Marketing activities are expected to stimulate travel between Phoenix and Frankfurt. In addition, per the Incentive Program, the City will waive general fees not to exceed $200,000. 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.