SUBJECT
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An Ordinance authorizing the City Manager to execute an airline lease agreement between the City of Laredo and Aerotransportes Rafilher S.A. de C.V., d/b/a Aerus, San Luis Potosi, México, for Exclusive Use Space and Joint Use Space located at 5210 Bob Bullock Loop at the Laredo International Airport Terminal Building, to conduct commercial air transportation services. The proposed lease term is for one year commencing on November 1, 2024 and ending on October 31, 2025, with an option to renew for one additional year. As an incentive for new air service, the city agrees to waive 100% of the airline’s Rent, Landing Fees, and FIS Fee obligations for the first 12 consecutive months of the airline’s flights to the Laredo International Airport.
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PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
Aerotransportes Rafilher S.A. de C.V., d/b/a Aerus, is a new Mexican Airline that shall provide commercial air transportation service to Monterrey International Airport. This lease agreement will provide the airline both exclusive use space and joint use space in order to conduct their operations.
Exclusive Use Space shall include the following:
Room No. Approx. square feet Ticket Counter ATO 2 Two positions
Ticket Offices ATO 2 199
Joint Use Space shall include the following:
Approx. square feet
Queue area at ticket counters 2,639
Baggage Claim 1,408
Security Screening 725
Concourse area 7,480
The proposed lease term is for one (1) year commencing on November 1, 2024 and ending on October 31, 2025, with an option to renew for one (1) additional year. As an incentive for new Air Service, the City agrees to waive 100% of the airline’s Rent, Landing Fees, and FIS Fee obligations for the first twelve (12) consecutive months of the airline’s flights to the Laredo International Airport.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends the approval of this ordinance
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Fiscal Impact
Fiscal Year: 2025
Budgeted Y/N?: N
Source of Funds: Rent
Account #: 242-0000-361-2061, 242-0000-361-1086
Change Order: Exceeds 25% Y/N: N/A.
FINANCIAL IMPACT:
Revenue accounts:
Aeronautical Building Rent: 242-0000-361-1086
Passenger Landing Fees : 242-0000-361-2061.