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Board recommends five-year lease with American Airlines, projects $2.1M new revenue
Summary
The board voted to recommend a five-year lease with American Airlines (effective Jan. 1, 2026, backdated) after staff outlined escalated rates and landing fees that amount to roughly $2.1 million in additional revenue over five years.
Don presented the negotiated five-year lease and operating agreement with American Airlines, explaining the contract accounts for scenarios with and without a second carrier and includes annual rate escalations tied to the airport's rates and charges study. He said the lease would be effective Jan. 1, 2026 (backdated) and detailed projected additional revenue: about $66,271 in FY26, $308,849 in FY27, and escalating to roughly $679,507 by FY30, which Don summarized as approximately $2,107,078 in additional revenue over five years.
A board member asked why the revenue jumps between years; Don explained the fiscal-year accounting (FY26 begins Oct. 1, 2025) and changes in per-square-foot rent and landing fees. The board moved to recommend submission of the agreement to city council and approved the recommendation by voice vote without recorded roll-call tallies.
