On June 30, 2006, the City entered into a two-year Scheduled Airline Operating Agreement and Terminal Building Lease with the Signatory Airlines. Those airlines that chose not to sign the Agreement opted instead to operate under City Ordinance and pay a higher landing fee. During the time following the original Agreement, a number of changes have taken place with the airline tenants including airline consolidations, bankruptcies, Terminal Building space changes, new airline tenants, etc., resulting in each airline having a different number of Amendments to their original Agreement. The last group of Amendments extended the airlines' Agreements through June 30, 2010. During discussions with the airlines, it was determined that a one-year extension of the current Agreement would be the best for all parties. Staff subsequently worked with the airlines to secure the additional one-year extension to the existing Agreement. Horizon Air, United Airlines, Delta Air Lines, Great Lakes Aviation, and Allegiant Air each signed the new Amendment extending the term of their respective Agreements with the City through June 30, 2011. Frontier Airlines will continue to operate under City Ordinance.

The Council may:

• Approve the Amendments to the Airline Agreements; or
• Not approve the Amendments to the Airline Agreements and require that all airlines operate only under City Ordinance.

These Amendments extend the term of each Airline Agreement and help to ensure the Airport's fiscal viability through June 30, 2011. The total budgeted airline revenue for the City is approximately $3,029,000 for FY 11.

Staff recommends that Council approve the Amendment to each of the Scheduled Airline Operating Agreements with Horizon Air, United Airlines, Delta Air Lines (as assignee and successor to Northwest Airlines), Great Lakes Aviation, and Allegiant Air, extending the Agreement expiration date to June 30, 2011.