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Committee advances Japan Airlines lease modification reducing cargo space and rent at SFO
Summary
The committee moved forward a resolution approving a lease modification reducing Japan Airlines’ cargo/office footprint at SFO and lowering annual rent by roughly $328,000; airport staff said the airport’s cost-distribution policy means no net fiscal impact to the city’s budget.
The Budget and Finance Committee reviewed and advanced a resolution to authorize Modification No. 1 to Lease L01-0297 with Japan Airlines Company Limited for Building 944 (Plot 50B-1) at San Francisco International Airport (SFO).
Cathy Weidner of the airport described the change: "The proposed modification would reduce the amount of leased cargo and office space, relinquish airport employee and airplane parking spaces, and reduce the annual rent payable to the airport by approximately $328,000 a year." She said the modification responds to Japan Airlines’ cessation of freighter operations and its bankruptcy protection filing and would let Japan Airlines focus on passenger service at SFO while reducing cargo rent liability.
City staff clarified the budget effect. Mr. Rose told the committee that because the airport spreads costs across carriers under its financial policy, the reduction in revenue from Japan Airlines would not create a fiscal exposure to the city’s general fund if the space is reassigned or otherwise accounted for under airport cost policies.
Committee members asked procedural questions, opened public comment (none opposed), and moved the resolution forward to the full Board with the committee’s recommendation.
