Item Coversheet

BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT

Item No. 4.H.
For Meeting of: December 1, 2020

ITEM TITLE:Resolution authorizing the initiation of an airline incentive program at the Yakima Air Terminal-McAllister Field
SUBMITTED BY:Robert K. Peterson, Airport Director, 509-575-6149
SUMMARY EXPLANATION:

In 2017, City Council adopted the Economic Development Strategic Plan, which included a plan to spur and sustain growth of Yakima’s economy over the long-term by collectively working to grow quality jobs.  Air service development was identified by the City Council as one of the strategic initiatives needed to competitively meet the travel needs of local businesses and residents.  In order to attract additional air service, the City of Yakima must consider an air carrier incentive program.  This incentive program is one of many tools utilized to encourage public-private partnerships that will leverage a Department of Transportation Small Community Air Service Development Grant to attract a prospective airline to the Yakima community.  This plan will also enhance air carrier service at the airport and may create an opportunity to increase passenger traffic, which will increase revenues to further support operations, maintenance, and capital improvements at the airport. 

 

The goals of the incentive program are to:

 

  • Increase passenger and/or cargo airline activity at the airport;

  • Attract new/additional passenger and/or cargo air service to the Yakima market;

  • Increase the number of non-stop destinations served from Yakima;

  • Increase the number of passengers traveling through the Airport;

  • Increase the amount of cargo processed at the Airport;

  • Increase non-airline revenues (concessions, parking, car rentals, etc.) at the Airport;

  • Help mitigate the financial impacts on passenger airlines when beginning passenger service at the Airport;

  • Compete with other airports seeking to attract new entrant passenger airlines. 

 

The air carrier incentive plan lays out three different scenarios where airlines may apply and receive discounted rates and charges as they begin new service from the airport.  These discounted rates span from 30-50% off landing and/or terminal fees in order to help offset the financial hardships with an airline launching service.  These discounted fees apply to the first 12 calendar months of service where the airline would be subject to the full rates and charges established by City Council.

ITEM BUDGETED:NA
STRATEGIC PRIORITY:Economic Development
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
DescriptionUpload DateType
Resolution11/16/2020Resolution
Air Carrier Incentive Program11/16/2020Backup Material