SUBJECT
title
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 February 1, 2026, and ending on September 30, 2026. The City agrees to a revenue service agreement, which shall only be payable in the event that the total departure revenue does not meet the agreed-upon minimum revenue threshold as outlined in the agreement. Funding is available in the Capital Improvements Fund.
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PREVIOUS COUNCIL ACTION
N/A
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 has been operating at the Laredo International Airport since October 2024 and is a tenant in good standing.
Aerus will continue to operate daily frequencies scheduled MTY-LRD-MTY (Monterrey, M?xico - Laredo, TX - Monterrey, M?xico) air service utilizing Cessna Grand Caravan EX aircraft configured for twelve passengers in single-class seating.
Thru negotiations, the City agrees to provide Aerus with a revenue service guarantee for 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 term of the agreement is for eight (8) months, commencing upon date of last signed authority ("Effective Date") and ending on September 30, 2026.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends the approval of this motion.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Y
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