Pinnacle Airlines will be supplementing airline operations for Delta Air Lines at various times throughout the travel seasons, mostly during the times of heavy summer traffic and the holidays when extra flights are brought in to accommodate the larger number of travelers. To ensure that specific operating requirements will be met, a Scheduled Airline Operating Permit should be entered into between the City of Billings and Pinnacle. This is a standard Operating Permit that is used for various airlines that operate occasionally for the Signatory Airlines that are based in Billings. The Operating Permit ensures that the airline follows certain Airport operating parameters and procedures, including providing proof that the proper insurance coverage is in place.

The City Council may:

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

The City will benefit from the additional landing fees that will be generated by the Pinnacle operations. It is difficult to determine what the actual financial benefit might be, but it is estimated to be approximately $4,000 to $5,000 annually.

Staff recommends that Council approve and the Mayor execute the Scheduled Airline Operating Permit with Pinnacle Airlines. A copy of the Operating Permit is on file with the City Clerk.