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Subcommittee forwards eight airline lease-and-use agreements for San Francisco International Airport
Summary
The Budget & Finance Subcommittee recommended approval of eight lease-and-use agreements at San Francisco International Airport — covering passenger and cargo carriers for the July 2011–July 2021 term — and heard a fiscal analysis showing a projected annual rental revenue reduction of $735,008.82 tied to two carriers reducing space.
The Budget and Finance Subcommittee moved to forward a resolution approving eight additional airline lease-and-use agreements at San Francisco International Airport to the full Board of Supervisors for final action.
Kathy Wagner of the airport Told the committee the leases use the same terms as 31 leases approved previously and would run from July 2011 through July 30, 2021. She named the carriers proposed for new agreements as Air Canada, Air New Zealand, Lan Peru, Air Berlin, Hawaiian Airlines, ABX Air, Air Cargo Airlines and Ameriflight, and explained that five of the agreements would authorize both landing rates and terminal rentals while three are cargo-only carriers requesting landing rights.
Budget analyst Mister Rose summarized the fiscal report, saying the subject airlines had paid landing fees in amounts reported in the materials between $2,500,000 and $2,700,000 for the fiscal periods noted. He told the subcommittee that two carriers — Air Canada and Air New Zealand — are reducing some of their space, which the analyst estimated would reduce annual rental revenues by $735,008.82. Rose said the airport's break-even policy means the airport expects to spread any shortfall across carriers so the airport itself does not incur a budget deficit.
With no public comment, the committee forwarded the leases to the Board "without objection." The leases were described by airport staff as the likely final group of signatory airlines under this lease-and-use agreement cycle; staff said additional lease modifications may come before the Board in the future.
The transcript contains minor transcription inconsistencies (see audit): an early reference to the airport presenter used the name "Kathy Weiner," while the presenter self-identified as "Kathy Wagner" when speaking; the article uses the self-identified name. Some numeric references to fiscal periods in the analyst's remarks were unclear in the transcript.
