Item G2
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
MEETING DATE: 9/19/01
9/20/01
DIVISION: COUNTY ADMINISTRATOR
BULK ITEM: No
DEPARTMENT: AIRPORTS
AGENDA ITEM WORDING: Approval for Sunrise Airlines, Inc., operated by Florida Air, to commence operations at the
Key West International Airport (KWIA).
ITEM BACKGROUND: This item was tabled at the 8/15/01 BOCC meeting, to be heard again at this meeting in Marathon.
The BOCC suggested that Florida Air make contact with the Florida Keys Marathon Airport to also serve that facility, as
well as Key West.
PREVIOUS RELEVANT BOCC ACTION: Tabled and continued to this meeting, 8/15/01.
CONTRACT/AGREEMENT CHANGES: New request
STAFF RECOMMENDATION: Subject to the US Department of Transportation approving their application to resume air
service, they have met the requirements to serve Key West. However, capacity is an issue at KWIA, and in order to help
alleviate those capacity problems, it was suggested that this airline also serve Marathon. Attached is their offer to serve
Marathon, which was presented to the Marathon Air Service Committee. Theresa Cook, Manager of the Florida Keys
Marathon Airport, will report to you on the recommendation of that committee.
TOTAL COST: N/A
BUDGETED: N/A
COST TO AIRPORT: N/A
COST TO PFC: N/A
COST TO COUNTY: N/A
REVENUE PRODUCING: Yes
AMOUNT PER MONTH/YEAR: Not known
APPROVED BY: County Attorney N/A
OMB/Purchasing N/A
Risk Management N/A
KEY WEST AIRPORT MANAGER APPROVAL
?s+-\-
Peter J. Horton
DOCUMENTATION: Included X
To Follow
Not Required
DISPOSITION:
AGENDA ITEM #
I"'~~
/bev
APB
August 20, 2001
The Honorable George Neugent
Mayor in Council
Monroe County
Public Service Building (mail room)
5700 College Road
Stock Island Key West, FL 33041
Reference:
Florida Air Holdings, Inc. / Sunrise Airlines, Inc.
Application to serve the Florida Keys
Dear Mr. Mayor:
Thank you for placing our application for service to Key West on the agenda for the
August County COmmissioner's meeting.
As I explained at the meeting, Florida Air Holdings, Inc. and its wholly owned subsidiary
Sunrise Airlines, Inc. (collectively referred to as Florida Air) is now under new, more
experienced airline management, and I can assure you that the "new" business plan will
be implemented in a thoroughly professional manner.
In a conversation after the meeting with Sonny McCoy he suggested that I summarize our
position in writing, hence this memo to you with copies to all Commission members. We
fully understand your concerns regarding Florida Air'sretum to Marathon in light of our
previous launch and subsequent cessation service. Let me assure you that we have every
intention of making Marathon part of our overall service pattern to the Keys. This was
discussed in detail at the July 26 meeting in Marathon with the airport manager, Theresa
Cook, and other members of the Airport Advisory Committee.
During that meeting, we asked for support from the committee members and major
resorts in the area, explained that we would continue to analyze the market to determine
the best routing from Marathon, and asked for their input in this regard. We also advised
them that our initial service would be to Key West and that Marathon service would
follow in Phase II of our expansion, approximately 90-120 days into Phase 1. The
additional benefit to this timetable, we believe, is that it provides both Florida Air and the
IDC / Marathon Airport Authority / local resorts sufficient time to advertise and promote
the new service.
We have taken the liberty of developing the attached Letter of Intent that formalizes our
plans to serve Marathon and asks for consideration of a number of incentives that have
been previously discussed with the Airport Authority, TOC and Board of Commissioners.
220 East Airport Avenue. Venice, Florida 34285 . Ph: (941) 485-1600. Fax: (941) 485-1610. RESERVATIONS: 1-877-NU-FLAJR (68-35247)
www.f1oridaair.com
With respect to Key West, we respectively request that you poll your fellow
commissioners to request approval for our Key West service so we can load the
schedule and begin selling and promoting the service as soon as we have DOT
approval.
As we are working on numerous fronts simultaneously, i.e. DOT / FAA approval, aircraft
deliveries, pilot training and marketing initiatives, we would appreciate a response at
your earliest convenience.
I will follow up by phone later this week to answer any questions you may have and
discuss a timetable for implementation. In the mean time, you may also call me at (941)
485-1600 or e-mail atsbrown2493@aol.com.
Thank you for your consideration and I look forward to speaking with you soon.
Sincerely,
YPfa- fL>
Stanley J. Brown
Vice President and CFO
Cc:
Commissioners:
Ms. Nora Williams
Mr. Sonny McCoy
Ms. Dixie Spehar
Mr. Mr. Murray Nelson
Airport Managers:
Mr. Peter Horton - Key West
Ms. Theresa Cook - Marathon
Florida Air Holdings: Mr. Gene Gillespie - President & CEO
LETTER OF INTENT
This Letter of Intent is between Florida Air Holdings, Inc. and its wholly owned subsidiary
Sunrise Airlines, Inc. (Florida Air) and the Monroe County Board of County Commissioners.
In addition to serving Key West, FL, Florida Air will also schedule service to Marathon, FL per
the following guidelines:
· Service to begin:
· Aircraft:
· Initial Frequency:
· Additional Frequency:
Friday, January 18, 2002
19-passenger British Aerospace Jetstreams
4 days weekly (Fr, Sa, Su, Mo)
Additional flights / destinations will be added consistent
with load factor growth and market demand
As a condition for Florida Air operating the above-stated service, the Monroe County Board of
County Commissioners agrees to provide the following concessions:
· Advertising/marketing & promotional funds from the Tourist Development Council at a level
consistent with our previous discussions. Advertising plan / expenditures to be developed
and agreed upon jointly by Florida Air and the mc. Funds to be made available upon
Florida Air's receipt of DOT approval to provide scheduled air service, and may be used to
promote service to both Key West and Marathon.
· Gate, ticket counter, baggage make-up and ramp space at no charge to Florida Air, as per
previous discussions.
· Landing fees at no charge to Florida Air as per prior discussions.
· Reimbursement to Florida Air by the Marathon Airport Authority costs of security
checkpoint equipment (baggage X-ray device). (Florida Air will provide manpower to
operate security checkpoint for all Florida Air flights). This item has also been previously
discussed with the Authority.
Agreed to by:
The Honorable George Neugent
Mayor in Council
Monroe County Board of County Commissioners
Signature:
Date:
220 East Airport Avenue' Venice, Rorida 34285. Ph: (941) 485-1600' Fax: (941) 485-1610. RESERVATIONS: 1-8n-NU-FLAIR (68-35247)
www.f1oridaair.com