Due to the recent merger of Northwest with Delta Air Lines, Inc., carrier arrangements at the Airport have been changing. As part of the continuing implementation of the merger, Delta is making internal changes to separate and consolidate the ground services currently being provided by some of its regional carriers (Comair, Compass, etc.) into a new entity, Regional Elite, which will only provide ticketing and ground service functions at various airports around the country.  Flying operations will remain with each respective regional carrier.  Since Regional Elite will soon take over the ticketing and ground handling operations for Delta Air Lines, a standard Scheduled Airline Operating Permit between the City of Billings and Regional Elite 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 automatically renewable for one-year periods, unless there have been no operational activities for three months or either party chooses to cancel the Permit with 30 days written notice.

A copy of the Operating Permit is available for review in the City Clerk's office.

The Council may:

•  Approve the Operating Permit,
•  Not approve the Operating Permit, or
•  Request staff to renegotiate some part of the Operating Permit.

Under the new Operating Permit, Regional Elite would not lease any new space in the Terminal Building, but would operate from space currently leased by the airline affiliate contracting its services.  Regional Elite will basically be treated as just another Delta or Northwest operation and all the common space rentals generated by Regional Elite are paid by the airline it is working for.

Staff recommends that Council approve and the Mayor execute the Scheduled Airline Operating Permit with Regional Elite Airline Services, LLC.