Item G2
SOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
MEETING DATE: 7/17/02
. ,
DIVISION: COUNTY ADMINISTRATOR
BULK ITEM: No - Time Approximate
DEPARTMENT: AIRPORTS
AGENDA ITEM WORDING: Discussion regarding airline service between Key West and Atlanta.
ITEM BACKGROUND: As of the agenda deadline, we have not received written confirmation from Atlantic Southeast
Airlines (ASA), but we are told that the Chief Executive Officer (CEO) of ASA would like to address the Board concerning
this issue. As the documentation becomes available, we will add it to this agenda item .'
PREVIOUS RELEVANT BOCC ACTION. None on this item
CONTRACTIAGREEMENTCHANGES: N/A
STAFF RECOMMENDATION: N/A
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 MONTHNEAR: Unknown at this time
APPROVED BY: County Attorney N/A
OMB/Purchasing N/A
Risk Management N/A
KEY WEST AIRPORT DIRECTOR APPROVAL
~1f
Peter J. Horton
DOCUMENTATION: Included
To Follow X
Not Required
AGENDA ITEM #
c;-~
DISPOSITION:
/bev
APB
6. Delta AU. Lines
Delta Air Lines, Inc.
Post Office Box 20706
Atlanta, Georgia 30320-6001
July 2, 2002
Mr. Peter Horton
Director of Airports
Key West Airport Authority
Key West International Airport
Dear Mr. Horton,
Delta Air Lines is proposing to fly two daily non-stop flights between Atlanta and Key
West operated by Atlantic Southeast (ASA) starting October 1st 2002. Service will be
operated with the 70 seat CRJ aircraft. Non-stop service to Atlanta offers the Key West
community superior access to the world with easy single connecting opportunities to over
140 domestic and 35 international cities. This new service, in addition to Delta's Orlando
service, is estimated to attract an incremental 20-30 thousand visitors annually.
In order to ensure success, cost containment, especially during the initial ramp-up
period, and marketing the new Atlanta service is critical in the first year of service. With
this in mind, we are seeking your assistance in working with the county commission, as
well as other key community and business leaders in securing incentives to help Delta
Connection defray start-up costs. Local investments in advertising, promotional
activities and fee abatements will provide substantial and much needed help in
promoting the new service during the start-up period while the market, revenue, and
support for the new service matures. The proposed schedule is as follows:
Atlanta Key West
Atlanta Key West
Key West Atlanta
Key West Atlanta
0815
1600
1105
1850
1020
1805
1305
2050
The proposed aircraft is the Bombardier CRJ-700. Known as one of the quietest
commercial aircraft in the world, the CRJ has revolutionized air travel through its broad
passenger appeal, convenience and comfort. The plane carnes passengers in a
comfortable two-by-two seating arrangement; every seat is an aisle or window, with no
middle seats. Additionally, all Delta Connection CRJ-700 aircraft feature all leather
interiors with a newly designed seat enhancing customer comfort.
We sincerely appreciate the airport and the community's support in helping to make
service to Atlanta a reality. We look forward to providing a quality airline product to Key
West and giving the community improved access to many cities and countries via
Delta's global network through our Atlanta hub.
Sincerely,
Joe Esposito
Director - Domestic Network Planning
Delta Air Lines
(404) 715 3283
"
Key West
International Airport
To:
From:
Date:
Subject: :
Mayor and Commissioners, County Administrator
Peter J. Horton, Mgr. KWIA
7/12/02
Landing Fee Waiver to Help Defray Start Up Costs for the Atlanta to
Key West Service.
In the attached letter from Delta Airlines, they have asked that we consider "fee
abatements" to help them defray start up costs for the new service. I have had
conversations with them recently and have determined that the only airport fee that
we could consider for waiver would be the landing fee for their two daily operations.
Based upon their landing weight and two daily landing, the waiver of landing fees for
one year would be equal to $76,489. They have agreed to pay all other airport fees
(rent, common area fees, and security fees).
Also, based upon a 63% load factor, this new service will provide 64,386 new
passengers into the airport. These new passengers will help support our sagging
Passenger Facility Charge revenues, and more importantly, add more than $80,000
to our rental car revenues.
For these reasons, I recommend that we waive landing fees for two landings a day
for a period of a year for the Delta Atlanta to Key West service.
G:L
6. Delta AiT Lines
Delta Air Lines, Inc.
Post Office Box 20706
Atlanta, Georgia 30320-6001
July 2, 2002
Mr. Peter Horton
Director of Airports
Key West Airport Authority
Key West International Airport
Dear Mr. Horton,
Delta Air Lines is proposing to fly two daily non-stop flights between Atlanta and Key
West operated by Atlantic Southeast (ASA) starting October 1st 2002. Service will be
operated with the 70 seat CRJ aircraft. Non-stop service to Atlanta offers the Key West
community superior access to the world with easy single connecting opportunities to over
140 domestic and 35 international cities. This new service, in addition to Delta's Orlando
service, is estimated to attract an incremental2Q-30 thousand visitors annually.
In order to ensure success, cost containment, especially during the initial ramp-up
period, and marketing the new Atlanta service is critical in the first year of service. With
this in mind, we are seeking your assistance in working with the county commission, as
well as other key community and business leaders in securing incentives to help Delta
Connection defray start-up costs. Local investments in advertising, promotional
activities and fee abatements will provide substantial and much needed help in
promoting the new service during the start-up period while the market, revenue, and
support for the new service matures. The proposed schedule is as follows:
Atlanta Key West
Atlanta Key West
Key West Atlanta
Key West Atlanta
0815
1600
1105
1850
1020
1805
1305
2050
The proposed aircraft is the Bombardier CRJ-700. Known as one of the quietest
commercial aircraft in the world, the CRJ has revolutionized air travel through its broad
passenger appeal, convenience and comfort. The plane carries passengers in a
comfortable two-by-two seating arrangement; every seat is an aisle or window, with no
middle seats. Additionally, all Delta Connection CRJ-700 aircraft feature all leather
interiors with a newly designed seat enhancing customer comfort.
We sincerely appreciate the airport and the community's support in helping to make
service to Atlanta a reality. We look forward to providing a quality airline product to Key
West and giving the community improved access to many cities and countries via
Delta's global network through our Atlanta hub.
Sincerely,
Joe Esposito
Director - Domestic Network Planning
Delta Air Lines
{404} 715 3283
('
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History
1979
1981
1982
1983
1984
1985
Mar. 12
June 27
July 21
April 1
May 1
June
Dec. 15
Aug. 20
A Delta Connection'
~jI
Incorporated as Atlantic Southeast Airlines, Inc.
Company headquarters established in Atlanta, Ga.
Began operations with one 19-passenger Twin Otter
aircraft. First market served: Atlanta-Columbus, Ga.
Added 17 -passenger Embraer Bandirante aircraft to fleet
Completed initial public stock offering
Added 48-passenger deHavilland Dash 7 aircraft to fleet
Acquired Southeastern Airlines
Joined Delta Connection program as one of first regional partners
Announced agreement with Embraer to become the world's first
operator of the Embraer Brasilia aircraft
Added 35-passenger Shorts 360 aircraft to fleet
Began operation of Memphis, Tenn. hub to feed Delta Air Lines'
Memphis operation
Added 30-passenger Embraer Brasilia aircraft to fleet
-MORE-
Atlantic Southeast Airlines . 100 Hartsfield Centre Parkway · Suite 800 · Atlanta, Georgia 30354-1356 . flyasa.com
1986
May 23
July 21
Sept. 1
Dec. 1
1987
January
1993
June 1
1994
June 19
June 1
1995
Dec. 1
1996
May 1
1997
Jan. 7
Aug. 26
Oct. 1
Delta Air Lines announced purchase of 2,665,000 shares of ASA
common stock to gain 20 percent of the voting securities of ASA.
Announced plans to establish hub in Dallas/Fort Worth, Texas
Terminated operations from Memphis, Tenn. hub to refocus
resources on planned expansion in Dallas/Fort Worth
Began operations from Dallas/Fort Worth hub
Named Regional Airline of the Year by Air Transport World
Added 66-passenger ATR-72-210 aircraft to fleet with inaugural
ATR service from Dallas/Fort Worth hub
Named Georgia's sixth-best-performing publicly held company by the
Atlanta Journal-Constitution
Inaugurated ATR-72-210 service from Atlanta hub
Initiated first jet service with introduction of BAe 146 aircraft
Expanded Atlanta operation with new gates at Hartsfield Atlanta
International Airport's C North Concourse
Placed order for 30 50-passenger Canadair regional jets (CRJ)
from Bombardier Aerospace - Bombardier's largest single CRJ order
from anyone airline to that date.
Received first Canadair regional jet from Bombardier Aerospace
Inaugurated Canadair regional jet service from Atlanta hub
-MORE-
1998
1999
2000
Sept. 4
Sept. 8
March 22
May 11
Nov.19
March 29
May 1
June 1
Oct. 1
Dec. 26
Announced order for an additional 27 Canadair regional jets -
bringing ASA's total firm order to 57 aircraft
Honored as one of the global aviation and aerospace industry's
best managed companies by Aviation Week & Space Technology
magazine
Acquired by Delta Air Lines, Inc.
Began operation as a wholly owned subsidiary of Delta Air
Lines
Celebrated 20th anniversary with special-edition Canadair
regional jet painted in Atlanta-themed livery
Joined with Delta Connection partner Comair in announcing
industry's largest regional jet order. In total, the order will
introduce 104 new Canadair regional jets to the Delta Connection
fleet by 2004. The order also included options for an additional
396 aircraft through 2010.
Inaugurated Canadair regional jet service from Dallas/Fort Worth
hub
Inaugurated first international service with flights to Toronto,
Ontario, Canada from Atlanta
Continued expansion of international service with flights to
Monterrey, Mexico from Atlanta and Dallas/Fort Worth
Boarded 6 millionth passenger for calendar-year 2000 - eclipsing
all previous one-year boarding records
-MORE-
2001
2002
Feb. 21
March 15
May 1
Dec. 9
Jan. 29
April 7
Introduced ASA's second special-livery aircraft, "Bluebonnet,"
during an inaugural celebration at the Dallas/Ft. Worth International
Airport. The aircraft pays tribute to ASA's DFW hub.
Introduced special-livery aircraft saluting Delta's sponsorship of
the 2002 Olympic Winter Games in Salt Lake City. The livery
matched Delta's "Soaring Spirit," a Boeing 757 painted to
represent the majesty of the Wasatch Mountains and the spirit of
the American West.
ASA President Skip Barnette named 2000 Commuter/Regional
Air/ine News Regional Airline Executive of the Year
Carried 2002 Olympic Flame between Miami and Mobile, Ala., as
part of Delta's sponsorship of the 2002 Olympic Winter Games in
Salt Lake City. The flame was carried aboard ASA Ship 869, a
special-livery 50-passenger Canadair regional jet saluting Delta's
sponsorship of the 2002 Games.
Received first 70-seat CRJ-700 aircraft from Bombardier Aerospace.
Inaugurated first 70-seat CRJ-700 service from Atlanta hub. First
cities served: Augusta, Ga.; Ft. Wayne, Ind.; Huntsville, Ala.;
Sarasota, Fla.; Tallahassee, Fla.; and Toledo, Ohio.
###
"
"' -- · .,,,,,, . . -'
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"
Fact Sheet
Corporate headquarters:
Hubs:
President:
Founded:
First flight:
Parent company:
Markets served:
Daily flights:
Passengers carried:
Workforce:
Fleet:
Aircraft on order:
Aircraft scheduled
for retirement:
Vision and values:
For more information:
On the web:
,::::W:'6.~"'r~.{I~'~ ,'~1'"
ADelta Conneetiolf
~~
Atlanta, Ga.
Hartsfield Atlanta International Airport, Atlanta, Ga.
Dallas/Fort Worth International Airport, Dallas, Texas
W.E. "Skip" Barnette
1979; First day of operation: June 27,1979
Columbus to Atlanta, Ga.
Delta Air Lines, Inc. (NYSE: DAL)
http://www.delta.com
99 airports in 27 U.S. states, Canada and Mexico
. From Atlanta: 82 markets in 25 states, Canada and Mexico
. From Dallas/Fort Worth: 36 markets in 13 states
More than 700
6.6 million in calendar-year 2001
53.1 million between January 1, 1980 and December 31, 2001
More than 5,000 employees in 42 domestic locations
135 modern aircraft carrying nearly 20,000 passengers every day
. 3 70-passenger Canadair regional jets (CRJ)
. 66 50-passenger Canadair regional jets (CRJ)
. 10 40-passenger Canadair regional jets (CRJ)
. 19 66-passenger ATR-72-21Os
. 37 30-passenger Embraer Brasilias (EMB-120)
6 CRJ-200 series jets (50-seat)
27 CRJ-700 series jets (70-seat)
7 Embraer Brasilia aircraft by Dec. 31, 2002.
To be the best regional airline
. Provide a safe, reliable, friendly, hassle-free traVel
experience for every passenger every time.
. Create an environment that recognizes the value of every
team member.
. Achieve efficiency in everything we do.
. Embrace teamwork as the foundation for success.
Contact ASA Corporate Communications at 404-766-1400
www.f1yasa.com
Atlantic Southeast Airlines . 100 Hartsfield Centre Parkway . Suite 800 · Atlanta, Georgia 30354-1356 · flyasa.com