Mayor announces 10-year airline agreement to extend airportannual service payment, pledges $330 million over term

The San Francisco mayor and airport officials on Tuesday announced a negotiated 10-year lease-and-use agreement with airlines serving San Francisco International Airport that they say will extend the city's annual service payment and generate an estimated $330 million over the life of the new agreement.

The mayor, speaking at a City Hall news conference, said the agreement was negotiated to replace the city's prior settlement that had governed the airport's annual service payment for 30 years and that the new deal will bring roughly $330,000,000 to the city over the next 11 years inclusive of the remaining year on the old contract.

The agreement keeps the structure under which the city receives 15 percent of concession revenues as the annual service payment. "We are now here, the culmination of such with this announcement that we have a 10 year agreement which over the next 11 years because we still have 1 year left of the old agreement…