Compass Airlines, Inc. (Compass) operates at Billings Logan International Airport as a Northwest Airlines, Inc. (Northwest) affiliate.  Due to the recent merger of Northwest with Delta Air Lines, Inc. (Delta), carrier arrangements at the Airport have changed effective July 1, 2009.  Compass provided air transportation services for Northwest prior to the merger and wishes to continue to be able to operate at the Airport.  To ensure that specific operating requirements will continue to be met, a standard Scheduled Airline Operating Permit between the City of Billings and Compass 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.

The Council may:

• Approve the Operating Permit,
• Decline to approve the Operating Permit, or
• Request staff to renegotiate some part of the Operating Permit.

Under the new Operating Permit, Compass would not lease any space in the Terminal Building, but would operate from space currently leased by the airline affiliate contracting its services.  Compass will basically be treated as just another Delta or Northwest operation and all the common space rentals and landing fees generated by Compass are paid by the airline they are working for.

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