Discussion and Possible Direction on the Flagstaff Pulliam Airport Air Carrier Incentive Policy
 

The Flagstaff Pulliam Airport has developed an Air Carrier Incentive Policy to encourage airlines to start and expand air services, thereby enhancing travel connectivity in northern Arizona. This policy, revised in accordance with the Federal Aviation Administration's Final Policy on Air Carrier Incentive Programs, offers tiered incentives to both new entrant and incumbent carriers based on service frequency. 

The incentive policy includes the waiver of landing fees, as well as office, ticket counter, and gate rent. Incentives for air service operating less than daily are tiered according to weekly service frequency. Landing fees are currently established at $1.09 per thousand pounds of the declared maximum certified gross landing weight of the aircraft. Currently, there is one vacant office, ticket counter, and gate space at the airport. Marketing assistance will be handled internally with support from Discover Flagstaff Creative Services. Adding additional air service is projected to increase revenues from airport parking, car rental fees, and grant opportunities related to enplaned passengers.

Additional air service will significantly contribute to a Robust and Resilient Economy by increasing tourism and visitation, creating job opportunities, and enhancing the appeal of northern Arizona to the business community. 

Air service is also crucial to creating a Livable Community by creating a welcoming and well-maintained community.  

The airport has the opportunity to add Passenger Facility Charges (PFCs) to airline ticket fares for departing passengers. These PFCs are used to help fund capital projects and development at the airport and support Sustainable and Innovative Infrastructure. 

The previous policy was presented to Council on February 26, 2019, as an informational item with no action taken.  

Staff is seeking feedback and direction from Council.

Air carrier incentive policies are widespread in the airport industry and are designed to attract and expand air service. Providing incentives to air carriers makes launching or initiating new services more appealing and reduces the financial challenges prospective air carriers face when starting new service. Adding an additional air carrier and/or routes is crucial to boosting airport revenue and improving connectivity in northern Arizona.

Additional air service will significantly contribute to a Robust and Resilient Economy by increasing tourism and visitation, creating job opportunities, and enhancing the appeal of northern Arizona to the business community. 

Air service is also crucial to creating a Livable Community by creating a welcoming and well-maintained community.  

The airport has the opportunity to add Passenger Facility Charges (PFCs) to airline ticket fares for departing passengers. These PFCs are used to help fund capital projects and development at the airport and support Sustainable and Innovative Infrastructure. 

The Regional Plan includes: Goal T.10. Strengthen and expand the role of Flagstaff Pulliam Airport as the dominant hub for
passenger, air freight, public safety flights, and other services in northern Arizona.

The proposed Air Carrier Incentive Policy directly addresses the policies below by encouraging and incentivizing additional air service routes.

Policy T.10.1. Maintain and expand Flagstaff Pulliam Airport as an important link to the national air transportation system.
Policy T.10.3. Seek opportunities to expand destinations and frequency of regional air service throughout the southwest and
west.

No

No