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Consent   1.E.
Regular City Council Meeting
Meeting Date:
11/23/2015
TITLE
Operating Permit with Neptune Aviation Services, Inc.
PRESENTED BY:
Kevin Ploehn
Department:
Airport
Presentation:

PROBLEM/ISSUE STATEMENT

Neptune Aviation Services, Inc. is an air transportation company that provides charter services as one of its primary operations.  Neptune is operating a charter service at Billings Logan International Airport, which began in September with direct round trip flights between Billings and Missoula.  The service started with twice/week flights on Tuesdays and Thursdays.  Neptune's service is a membership based flight program for Missoula area individuals and companies that travel frequently to Billings and want to get here and back on the same day.  Neptune operates a King Air aircraft with room for 6-8 passengers.   To ensure that specific operating requirements will continue to be met, a standard Operating Permit between the City of Billings and Neptune 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 effective September 1, 2015 through August 31, 2016, and is automatically renewable for one-year periods, unless there have been no operational activities for one (1) year or either party chooses to cancel the Permit with 30 days advance written notice.  A copy of the Permit is on file in the City Clerk's office.
 

ALTERNATIVES ANALYZED

City Council may:
  • Approve the Operating Permit with Neptune Aviation Services, Inc.; or
  • Disapprove the Operating Permit with Neptune Aviation Services, Inc.

FINANCIAL IMPACT

Under the new Operating Permit, Neptune does not lease any new space in the Terminal Building, but operates from Edwards Jet Center, the Fixed Base Operator at the Airport.  Neptune will pay landing fees, which are based on the number of landings and the landed weight of the aircraft they use at the Airport.  It is anticipated that this operation will generate approximately $2,000 in landing fees per year.

RECOMMENDATION

Staff recommends City Council approve and the Mayor execute the Operating Permit with Neptune Aviation Services, Inc.

APPROVED BY CITY ADMINISTRATOR