Beginning in October, DAL Global Services, LLC will operate at Billings Logan International Airport as a Delta Air Lines, Inc., affiliate. As part of the continuing implementation of the merger with Northwest Airlines, Delta is making internal changes to consolidate the ground services at a number of its stations. These services were previously provided by Regional Elite, a contracted entity providing ground services only. Flying operations of each regional carrier will remain with each respective carrier. To ensure that specific operating requirements will continue to be met, a standard Operating Permit between the City of Billings and DAL is required. The Operating Permit ensures that the air transportation company 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 with DAL is on file in the City Clerk's Office.

The City Council may:

• Approve the Operating Permit with DAL; or
• Not approve the Operating Permit with DAL.

Under the new Operating Permit, DAL will not lease any new space in the Terminal Building, but would operate from space currently leased by the airline affiliate contracting its services, in this case, Delta. DAL will be treated as just another Delta operation and all the common space rentals generated by DAL will be paid by Delta.

Staff recommends that City Council approve and the Mayor execute the Operating Permit with DAL Global Services, LLC.