Mesaba Aviation, Inc., DBA Mesaba Airlines operates at Billings Logan International Airport as a Delta Air Lines, Inc. affiliate. Mesaba is one of Delta's contracted Delta Connection carriers handling Delta'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 Mesaba 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 three months or either party chooses to cancel the Permit with 30 days written notice.

The City Council may:

•  Approve the Operating Permit with Mesaba Aviation, Inc., DBA Mesaba Airlines; or
•  Not approve the Operating Permit with Mesaba Aviation, Inc., DBA Mesaba Airlines.

Under the new Operating Permit, Mesaba would not lease any new space in the Terminal Building, but would operate from space currently leased by the airline affiliate contracting its services. Mesaba will be treated as another Delta operation and all the common space rentals/variable charges generated by Mesaba flights on Delta'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 Mesaba Aviation, Inc., DBA Mesaba Airlines.