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Consent   1.G.
Regular City Council Meeting
Meeting Date:
05/22/2017
TITLE
Airline Operating Permit with Envoy Air, Inc.
PRESENTED BY:
Kevin Ploehn
Department:
Airport
Presentation:

PROBLEM/ISSUE STATEMENT

Envoy Air, Inc. will operate at Billings Logan International Airport as an American Airlines affiliate.  American Airlines will begin operation at the Airport on June 2, 2017 with daily service to Dallas/Fort Worth, TX.  To ensure that specific operating requirements will continue to be met, a standard Scheduled Airline Operating Permit between the City of Billings and Envoy 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.

ALTERNATIVES ANALYZED

City Council may:
  • Approve the Operating Permit with Envoy; or
  • Disapprove the Operating Permit with Envoy.

FINANCIAL IMPACT

Under the new Operating Permit, Envoy would not lease any new space in the Terminal Building, but would operate from space currently leased by the airline affiliate contracting its services.  Envoy will basically be handled as another American Airlines operation and all the common space rentals and landing fees generated by Envoy are paid by the airline it is working for.
 

RECOMMENDATION

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

APPROVED BY CITY ADMINISTRATOR

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