Title
Agreement with American Airlines Under the Air Service Incentive Program (Ordinance S-45123)
Description
Request to authorize the City Manager, or his designee, to enter into an Air Service Development Agreement, in accordance with the approved International Air Service Incentive Program (Program), with American Airlines for rent credits based on net new passengers on the new daily flights to and from London, England. The City is to provide a $12 rent credit to American Airlines for each net new Phoenix enplaned passenger on the new flights, as established in the Program. Rent credits may not exceed rent charged.
Report
Summary
On April 19, 2017, the Phoenix 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).
American Airlines has agreed to add new daily nonstop scheduled air service between Phoenix and London beginning March 31, 2019. London is Phoenix's largest overseas market and is a qualifying city in the International Air Service Incentive Program. American Airlines qualifies for benefits included in the Program by establishing these new flights.
Financial Impact
Per the City Council-approved Program, the City is to provide a $12 rent credit to American Airlines for each net new Phoenix enplaned passenger on the new flights. Net new is defined as the total Phoenix enplaned passengers on the route that month, including on the new flight, exceeding the total number of Phoenix enplaned passengers on the route during the same month the previous year. Rent credits may not exceed rent charged.
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.