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File #: ID18-0487    Version: 1 Name:
Type: Action Item Status: Passed
File created: 4/4/2018 In control: City Council
On agenda: 4/19/2018 Final action: 4/19/2018
Title: Approve an Airline Operating Agreement with Frontier Airlines, Inc. for new passenger airline service at Fresno Yosemite International Airport (Council District 4)
Sponsors: Airports Department
Attachments: 1. 04-19-18 Frontier Airlines AOA.pdf

REPORT TO THE CITY COUNCIL

 

 

 

April 19, 2018

 

 

FROM:                     KEVIN R. MEIKLE, Director of Aviation

                     Airports Department

 

 

SUBJECT

Title

 

Approve an Airline Operating Agreement with Frontier Airlines, Inc. for new passenger airline service at Fresno Yosemite International Airport (Council District 4)

 

Body

RECOMMENDATION

 

Staff recommends Council authorize the Director of Aviation to execute an Airline Operating Agreement (AOA) with Frontier Airlines, Inc. (Frontier), for passenger airline service at Fresno Yosemite International Airport (FAT).

 

EXECUTIVE SUMMARY

 

AOAs address airline lease and operating parameters related to providing scheduled commercial air service at airports.  The Frontier Airlines AOA is consistent with other airline AOAs at FAT and will be effective through June 30, 2020.

 

Background

 

AOAs define common use privileges of the airport (ticketing, baggage claim, gate areas, etc.), lease of exclusive use space (office and operation areas), rules and regulations associated with airport operations, and term and termination clauses.  AOAs are also viewed by Bond Rating Agencies as important contractual documents that can lead to favorable credit ratings, which is significant because the ratings are directly tied to FAT’s ability to meet its future capacity needs.  The AOA has a sixty-day Termination for Convenience clause.

 

Frontier Airlines is scheduled to begin new service from Fresno to Denver on May 22, 2018, with three flights weekly using an A320 aircraft with a 185 passenger capacity.

 

The City Attorney has reviewed and approved the AOA as to form.

 

ENVIRONMENTAL FINDINGS

 

This is not a “project” pursuant to CEQA Guidelines Section 15378.

 

LOCAL PREFERENCE

 

Local preference is not applicable because the AOA is not a purchase or services agreement.

 

FISCAL IMPACT

 

There is no impact to the General Fund from this action.  There are no changes in landing fees, terminal rents or any other fees to the airlines with this action, which are identified in the City’s Master Fee Schedule.  AOAs enable airlines to operate in a cost and operationally efficient manner, which supports FAT as a regional transportation center and driver of economic development. 

 

Attachments:

-                     Frontier Airlines AOA