ExpressJet Airlines operates at Billings Logan International Airport as a United Air Lines, Inc. affiliate. ExpressJet is one of United's contracted United Express carriers handling United's flights at certain airports and during schedule and fleet transitions. To ensure that specific operating requirements will continue to be met, a standard Scheduled Airline Operating Permit between the City of Billings and ExpressJet 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 Operating Permit is automatically renewable for one-year periods, unless there have been no operational activities for six months or either party chooses to cancel the Permit with 30 days written notice.

The City Council may:

•  Approve the Operating Permit with ExpressJet Airlines; or
•  Not approve the Operating Permit with ExpressJet Airlines.

Under the new Operating Permit, ExpressJet would not lease any new space in the Terminal Building, but would operate from space currently leased by the airline affiliate contracting its services. ExpressJet will be treated as another United operation and all the common space rentals/variable charges generated by ExpressJet flights on United's behalf are paid by the airline for which it is working.

Staff recommends that City Council approve and the Mayor execute the Scheduled Airline Operating Permit with ExpressJet Airlines.