AGENDA ITEM No. 4
SARASOTA MANATEE AIRPORT AUTHORITY
October 19, 2020 SPECIAL BOARD MEETING
STAFF NARRATIVE
RE APPROVAL: SMAA RESOLUTION 2020-07 POLICY FOR FY 2021-2022
SARASOTA MANATEE AIRPORT AUTHORITY AIR CARRIER INCENTIVE PROGRAM
EXECUTIVE SUMMARY: The President, Chief Executive Officer, requests approval of SMAA Resolution 2020-07: Sarasota Manatee Airport Authority Air Carrier Incentive Program (ACIP) to attract increased commercial flight activity at the Sarasota Bradenton International Airport.
NARRATIVE: On January 28, 2019, the SMAA approved ACIP 2019-02. Since approval, multiple airlines have qualified for fee waivers and marketing funds under the ACIP by adding new nonstop service at SRQ. Of the previous allocations for promoting new destinations, $820,150.10 remains. ACIP 2020-07 provides the following updates:
Extends the Air Carrier Incentive Program until October 18, 2022
Establishes an additional appropriation of $750,000 dollars
HISTORY: The SMAA has directed management to implement a Domestic and International Air Carrier Incentive Program (ACIP). The objectives of the ACIP are to:
Promote incumbent air carriers to offer new, non-stop service and/or expand existing service
Promote new entrant air carriers to offer new, non-stop, scheduled passenger air service
Promote marketing of new and existing air carrier routes
New and incumbent air carriers that provide qualifying service will be eligible for fee abatements and marketing support for an established period in accordance with Federal Aviation Administration (FAA) guidelines. The amount of marketing support and fee abatement eligibility will be based on the type of service (domestic or international), the frequency of service (year-round, daily, less-than-daily, or seasonal), the number of new non-stop destinations, and other regulating factors listed in the ACIP.
The incentive program is intended to leverage SMAA support to assist the airline(s) in engaging and making new service successful through aggressive marketing and promotions. Total new marketing support dollars under this program are added in the amount of seven-hundred fifty-thousand dollars ($750,000) from un-restricted funds.
RECOMMENDATION: It is hereby recommended that the SMAA Board approve Resolution 2020-07, SARASOTA MANATEE AIRPORT AUTHORITY AIR CARRIER INCENTIVE PROGRAM, funded from unrestricted funds in the amount of $750,000 dollars for the promotion of additional domestic and international air service at the Sarasota Bradenton International Airport; It is furthermore recommended that the Public Hearing requirement contained in the Authority By-Laws is waived in this instance.
Attachment: SMAA RESOLUTION 2020-07: SARASOTA MANATEE AIRPORT AUTHORITY AIR CARRIER INCENTIVE PROGRAM.