SUBJECT
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Consideration to authorize the City Manager to execute an Air Service Agreement with Aerotransportes Rafilher S.A. de C.V., San Luis Potos?, M?xico ("Aerus"), to conduct commercial air transportation services. The term of the agreement is for eight months, commencing on October 14, 2024, and ending on June 14, 2025, with the City's sole option to extend for an additional year, ending June 14, 2026.
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PREVIOUS COUNCIL ACTION
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BACKGROUND
Aerotransportes Rafilher S.A. de C.V., San Luis Potos?, M?xico ("Aerus") is a Mexican airline that has proposed to provide commercial air transportation service from the Laredo International Airport to the Monterrey International Airport.
Aerus will operate 5 weekly frequencies scheduled MTY-LRD-MTY (Monterrey, M?xico - Laredo, TX - Monterrey, M?xico) air service utilizing Cessna Grand Caravan EX aircraft configured for nine passengers in single-class seating.
The City has agreed to a revenue guarantee to Aerus that each Departure in each Market in a calendar month will produce no less than a specified level of Total Departure Revenue for each Departure as described below:
Revenue guarantee per departure from Laredo, Texas (LRD) to Monterrey (MTY) - $1,428
Revenue guarantee per departure from Monterrey (MTY to Laredo, Texas (LRD) - $1,216
The City also agrees to waive 100% percent of Aerus' Landing Fee and FIS Fee obligation during the first term of this agreement.
The term of the agreement is for eight (8) months, commencing upon date of last signed authority ("Effective Date") and ending on June 14, 2025, with the City's sole option to extend for an additional year, ending June 14, 2026.
COMMITTEE RECOMMENDATION
Airport Advisory Board recommends the approval of this motion.
STAFF RECOMMENDATION
recommendation
Staff recommends the approval of this motion.
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Fiscal Impact
Fiscal Year: 2024
Budgeted Y/N?: N
Source of Funds: N/A
Account #: N/A
Change Order: Exceeds 25% Y/N: ...
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