Title
Agreement with Air Canada Under the Air Service Incentive Program (Ordinance S-45671)
Description
Request to authorize the City Manager, or his designee, in accordance with the approved International Air Service Incentive Program (Program), to enter into an Air Service Development Agreement with Air Canada, and to waive landing fees for a flight to Montreal, Canada and reimburse eligible marketing costs to Air Canada in an amount not to exceed USD $300,000. Further request authorization for the City Controller to disburse funds related to this item.
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 will resume scheduled air service between Phoenix and Montreal on Sept. 6, 2019. 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 may reimburse Air Canada up to USD $300,000 for eligible marketing costs supporting the Phoenix-Montreal route and the City will waive landing fees from the resumption of the flight, through Feb. 22, 2020. 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 Assistant City Manager Deanna Jonovich and the Aviation Department.