HomeMy WebLinkAbout033609 RES - 03/25/2025Resolution adopting an updated Air Service Incentive Plan for
qualified airlines to serve the Corpus Christi International Airport; and
authorizing the City Manager to execute all documents necessary to
offer and secure such incentives as are deemed desirable.
WHEREAS, the City of Corpus Christi ("City"), as the sponsor of the Corpus Christi
International Airport ("Airport" or "CRP"), owns and operates the facility located in Corpus
Christi, Texas;
WHEREAS, the City authorizes CRP to "exercise such powers as may be required
or consistent with the promotion of aeronautics and the furtherance of commerce and
navigation by air";
WHEREAS, the City supports the growth of air service at CRP because increased
passenger activity results in increased revenues and because additional air service and
enhanced competition serves the interests of the residents of Corpus Christi and the
greater Coastal Bend Metropolitan area;
WHEREAS, federal law (49 U.S.C. § 47107(a)(1)) and the City's contractual
commitments to the federal government require that the City "make the airport available
as an airport for public use on reasonable terms and without unjust discrimination to all
types, kinds and classes of aeronautical activities"; and
WHEREAS, the Federal Aviation Administration ("FAA") recognizes the right of
airport sponsors to support new and expanded air service through marketing and
operational incentives during a promotional period, subject to compliance with specific
requirements set forth in FAA policy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. The City Council finds that the foregoing preamble and recitals language
stated in this resolution to be true and correct and adopts such language and findings for
all intents and purposes related to establishing and adopting the Air Service Incentive
Plan that is the subject of this resolution. A copy of the Air Service Incentive Plan will be
placed on file with the City Secretary's Office.
SECTION 2. The City Manager is authorized to execute all documents necessary to offer
and secure such air service incentives as are deemed desirable as expressly outlined in
the adopted Air Service Incentive Plan.
SECTIONI. The following delegations shall apply to the implementation and
administration of the Air Service Incentive Plan:
a. The Airport Director ("Director") is delegated with the responsibility to
implement and administer the Air Service Incentive Plan.
33 609
SCANNED
b. The Director's authority to negotiate and execute air service incentive
agreements shall be in accordance with the most current version of the
City's Delegation of Signature Authority.
c. The Director shall provide quarterly reports to the City on the incentives
granted since the last report and the total incentives then outstanding.
d. The Director shall coordinate with and provide technical assistance to the
Corpus Christi Air Service Development Task Force.
2. This resolution supersedes any prior air service incentive program for CRP
approved by the City; provided, however, that nothing herein shall be construed to
affect the terms and conditions of any marketing incentive agreement or
operational incentive agreement presently in effect between the Corpus Christi Air
Service Development Task Force and an air carrier.
3. This resolution shall be perpetual. The Director is hereby granted the authority to
amend the Air Service Incentive Program. It is the intent of the City that the Air
Service Incentive Program shall be reviewed and updated annually.
Paulette Guajardo, M
Mk‘A day of 1\1\0400
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Re
, 2025.
,'Ill
ecca Huerta, Wary
033609
Corpus Christi International Airport
Air Service Incentive Program
Incentive Categories
The below table identifies the categories of available incentives, basic
requirements, and the associated operational and marketing incentive
passenger air carrier. This table is to be implemented and interpreted
terms and conditions that follow.
Category
I — New Year -
Round
Service
II — New
Seasonal
Service
III —
Significant
Increase in
Seat Capacity
IV — New
Entrant
Bonus
Eligibility
Establishment of
new year-round
nonstop service
to an unserved
destination
Establishment of
seasonal
nonstop service
to an unserved
destination
Increase in seat
capacity on a
specific route by
50% or more
without loss of
frequency
Any new entrant
passenger air
carrier
establishing
year-round or
seasonal
nonstop service
Operational Incentive
100% landing fee waiver for 24
months
100% waiver of common -use fees
for 24 months
100% landing fee waiver for up to
three seasons
100% waiver of common -use fees
for up to three seasons
Waiver of landing fees for increased
capacity for 12 months
If year-round service, 100% waiver
of all common -use fees and
preferential rents for first 24 months
to an unserved destination
If year-round service, 100% waiver
of all common -use fees and
preferential rents for first 12 months
to a currently served destination
If seasonal, 50% waiver of all
common -use fees and preferential
rents for up to three seasons.
eligibility
s for any
according to the
Marketing
ncentive
Up to $125,000
per year for up to
two years (to be
used within 24
months)
$25,000 per
season for up to
three seasons (to
be used within 36
months)
No marketing
incentive
No additional
marketing
incentive
Definitions and General Requirements
1. For metropolitan areas with multiple airports, each airport will be considered as a
separate destination. For example, Washington Dulles International Airport could
be considered an unserved destination notwithstanding existing service to
Washington Reagan National Airport.
2. To be considered new service to an unserved destination (year-round or
seasonal), no other carrier must offer scheduled service to the airport as of the
date that the air carrier seeking the incentive plans to initiate service.
3. To qualify under Category I, Category II, or Category IV, service must be offered
at least one day per week.
4. Seasonal service is nonstop service offered for Tess than seven months of the
calendar year but at least 6 consecutive weeks. There may be more than one
season per calendar year (e.g., winter and summer); however, there may be no
less than one season per calendar year.
5. Year-round service is nonstop service offered for seven or more months in a 12-
month period.
6. A new entrant is an air carrier that has not offered commercial passenger service
to or from CRP within the preceding 12 months prior to the date that the air
carrier plans to initiate service.
7. The new entrant bonus may be combined with Category I and Category II
incentives.
8. Considering budget constraints, Category I and Category II incentives only will be
available to the first air carrier requesting an incentive to initiate service to the
unserved destination.
9. The waiver of landing fees only applies to the landing fees associated with the
incentivized flights.
10.The waiver of common -use fees only applies to the fees due in connection with
the incentivized flights, calculated on the basis of enplanements on the
incentivized flights. Applicable fees include common -use gates, security,
baggage claim, and remain over -night (RON) fees.
11."Preferential Gate" shall mean a gate designated by the Airport Operator for use
by an Airline that operates a minimum of four (4) scheduled flights per day, on at
least four (4) days of a given week.
12.An air carrier will not be eligible for Category III (significant increase in seat
capacity) if the carrier already is receiving an incentive for the flight under
Category I or Category II.
13.To qualify under Category III, the air carrier must request the incentive prior to
initiating the increase in service. The incentive will not be made available
retroactively.
Other Terms and Conditions
1. Participation in this program requires an incentive agreement between the City of
Corpus Christi and an air carrier, using the City's standard form agreement.
2. An air carrier may qualify for an incentive whether the air carrier operates as a
signatory or non -signatory at CRP, provided that the air carrier otherwise
satisfies the eligibility and qualification requirements of this incentive program.
3. To qualify for incentives, a carrier must be current on payments of rates and
charges.
4. Air carriers must operate service throughout duration of the promotional period at
the level specified to receive the incentive.
5. Air carriers must use the passenger terminal at CRP in order to qualify for
incentives.
6. An air carrier may qualify for an incentive regardless of the type of economic and
safety certificates it has sought and received from the U.S. Department of
Transportation and FAA, including authorities granted under 14 C.F.R. Parts 119,
121 and Part 135, provided that the air carrier otherwise satisfies the eligibility
and qualification requirements of this incentive program.
7. An air carrier may only qualify for an incentive for a particular route one time.
8. Incentives may not be transferred from one carrier to another. Incentives cannot
be transferred between routes.
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly
authorized representative), hereby certify to the City Council and other appropriate officers that
the money required for the current fiscal year's portion of the contract, agreement, obligation
or expenditure described below is in the Treasury to the credit of the Fund specified below, from
which it is to be drawn, and has not been appropriated for any other purpose. Future payments
are subject to annual appropriation by the City Council.
City Council Action Date: March 25, 2025 Legistar Number: 25-0308
Agenda Item:
Resolution adopting an updated Air Service Incentive Plan, effective immediately, for qualified
airlines to serve the Corpus Christi International Airport; and authorizing the City Manager to
execute all documents necessary to offer and secure such incentives as are deemed
desirable.
Amount Required: $0.00
Fund Name
Accounting Unit
Account No.
Activity No.
Amount
Total
Certification Not Required
Director of Financial Services
Date: - a S- D S