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Consent   1.D.
Regular City Council Meeting
Meeting Date:
08/24/2015
TITLE
Airline Operating Permit with Trans States Airlines, L.L.C.
PRESENTED BY:
Kevin Ploehn
Department:
Airport
Presentation:

PROBLEM/ISSUE STATEMENT

Trans States Airlines, L.L.C. (Trans States) will operate at Billings Logan International Airport as a United Airlines, Inc. (United) affiliate.  To ensure that specific operating requirements will continue to be met, a standard Scheduled Airline Operating Permit between the City of Billings and Trans States is required. The Operating Permit ensures that the airline follows certain operating parameters and procedures, including providing proof that the proper insurance coverage is in place.  The Permit is effective August 1, 2015 through July 31, 2016 and is automatically renewable for one-year periods, unless there have been no operational activities for one year or either party chooses to cancel the Permit with 30 days advance written notice.  A copy of the Operating Permit is available for review at the City Clerk's office.
 

ALTERNATIVES ANALYZED

City Council may:
  • Approve the Operating Permit with Trans States, or
  • Disapprove the Operating Permit with Trans States.

FINANCIAL IMPACT

Under the new Operating Permit, Trans States would not lease any new space in the Terminal Building, but would operate from space currently leased by United, the affiliate airline contracting its services.  Trans States will basically be treated as just another United operation, and all the common space rentals generated by Trans States will be paid by the airline for which it works.
 

RECOMMENDATION

Staff recommends that City Council approve and the Mayor execute the Scheduled Airline Operating Permit with Trans States Airlines, L.L.C.
 

APPROVED BY CITY ADMINISTRATOR