On January 22, 2019, Frontier Airlines announced that they would be starting service to Billings from Denver.  This service would be on Tuesday, Thursday, and Sunday beginning May 30, 2019, on an Airbus A-320 with 186 seats. Frontier Airlines will be operating out of the Airport's Terminal Building and desires to lease ticket counter, office, and holdroom space, and would like to enter into the Airport's standard Scheduled Airline Operating Agreement and Terminal Building Lease (Agreement).  This Agreement lays out the terms for a passenger airline to operate at the Billings Logan International Airport and to lease space in the Terminal Building.  This Agreement also dictates the financial arrangements for rental adjustments and landing fee calculations.  The term of the Agreement is set to expire on March 31, 2020, which coincides with the approximate date of the Terminal Expansion project that will require the relocation of the airlines on the concourse during the construction process.  Between now and March 31, 2020, the Airport and all the airlines will negotiate an interim agreement for the construction period that will address the concourse space use issues during the Terminal Expansion project.  An amendment with all the other airlines is in the works to also extend their agreement term to March 31, 2020.
 

City Council may:

• Approve the Scheduled Airline Operating Agreement and Terminal Building Lease with Frontier Airlines; or
• Disapprove the Scheduled Airline Operating Agreement and Terminal Building Lease with Frontier Airlines and provide direction to staff on how to proceed.

Staff recommends that the City Council approve and the Mayor sign the Frontier Airlines, Inc. Scheduled Airline Operating Agreement and Terminal Building Lease.