Mesa Airlines, Inc. will operate at Billings Logan International Airport as a United Airlines, Inc. affiliate and United Express carrier.  To ensure that specific operating requirements will continue to be met, a standard Scheduled Airline Operating Permit between the City of Billings and Mesa 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 one year, or either party chooses to cancel the Permit with 30 days written notice. A copy of the Operating Permit is on file in the City Clerk's Office.

City Council may:

• Approve the Operating Permit with Mesa Airlines, Inc.; or
• Disapprove the Operating Permit with Mesa Airlines, Inc.

Under the new Operating Permit, Mesa 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.  Mesa will basically be treated as just another United operation, and all the common space rentals generated by Mesa 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 Mesa Airlines, Inc.