Republic Airline, Inc., will operate at Billings Logan International Airport as a United Air Lines, Inc., affiliate. Due to the recent merger of Continental with United, carrier arrangements at the Airport will change effective October 2012. As part of the continuing implementation of the merger, United is making internal changes to its carrier services. To ensure that specific operating requirements will continue to be met, a standard Scheduled Airline Operating Permit between the City of Billings and Republic 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 Permit is on file in the City Clerk's Office.

The City Council may:

• Approve the Operating Permit with Republic Airline, Inc.; or
• Not approve the Operating Permit with Republic Airline, Inc.

Under the new Operating Permit, Republic would not lease any new space in the Terminal Building, but would operate from space currently leased by United, the airline affiliate contracting its services. Republic will basically be treated as just another United operation, and all the common space rentals generated by Republic will be paid by the airline for which it works.

Staff recommends that City Council approve and the Mayor execute the Scheduled Airline Operating Permit with Republic Airline, Inc.