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Consent   1.E.
Regular City Council Meeting
Meeting Date:
03/26/2018
TITLE
Airline Operating Permit with MN Airlines, LLC DBA Sun Country Airlines
PRESENTED BY:
Kevin Ploehn
Department:
Airport
Presentation:
No

PROBLEM/ISSUE STATEMENT

MN Airlines, LLC DBA Sun Country Airlines will operate at Billings Logan International Airport as a charter airline. To ensure that specific operating requirements will continue to be met, a standard Scheduled Airline Operating Permit between the City of Billings and Sun Country 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 November 1, 2017 through October 31, 2018, and is automatically renewable for one-year periods unless there have been no operational activities for one year, or one of the parties chooses to cancel the Permit with 30 days advance written notice.

ALTERNATIVES ANALYZED

City Council may:
  • Approve the Operating Permit with Sun Country; or
  • Disapprove the Operating Permit with Sun Country.

FINANCIAL IMPACT

Under the new Operating Permit, Sun Country would not lease any new space in the Terminal Building, but would operate from space currently leased by an airline at the Airport that has agreed to service the flight.  Sun Country will be billed for landing fees based upon each flight to the Airport at the then current landing fee rate per 1,000 pounds of landed weight.  These incidental revenues are not expected to total more than a few thousand dollars each year.

RECOMMENDATION

Staff recommends that City Council approve and the Mayor execute the Scheduled Airline Operating Permit with MN Airlines, LLC DBA Sun Country Airlines.

APPROVED BY CITY ADMINISTRATOR