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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. 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C 1? .Q ro. ~ EO "lil.9 '0 " "'0 F ffi >, '+= +-' CU ..c +-' Cf) CU Q) l:J eo. ~ Q ,g a a '" .t i- ,: t ~ ~ E E E E ~ LO [0 ~ C"'! ~ ~ ~ Cr:>Coo<o (0 (0 ~ ~ ~ ~ C"'! <ii Qj c > <1l Q 5t OJ C :;:: ~t~ ~ ~ ~ t-l -'" o .2 In E -~C0~ C\!Ol~lri<'? t!~ "'-0 .l! .. C &: :;; IV () , ~ -. -- . ",IJtllJ ,'" ~ L'~ ~'\""'.""~"''"''~- ..-."'" '_~C._JI""'" ,/ " 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. ### " "' -- · .,,,,,, . . -' ..,,' ...."m"" '." " '. '..' '.,t...- A.'~ ,_ "".MIll"'" ~ _-...".. - .:J""l /' " 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