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Airlines And Port Columbus Reach Revenue Sharing Deal
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Port Columbus and 10 airlines that serve the international airport have signed a revenue sharing agreement. Port Columbus officials say the new agreement is designed to encourage carriers to maintain and perhaps expand airline service to the city.
The new revenue agreement commits the airport authority to share three-quarters of its net annual operating income with the 10 airlines. Port Columbus spokeswoman Angie Tabor.
“The airport authority will share 75 percent of its annual operating income – certainly after the costs of doing business and capital fund and debt service requirements – basically after the bills are paid, we will share 75 percent of the annual operating income and will give that back to the airline in the form of rent credits,” Tabor says.
A previous agreement included a fixed, pre-negotiated credit. Airport officials hope this new agreement with the potential for larger credits will help spur a growth in the number of flights.
“This will help offset the airlines’ cost of doing business at the airport and hopefully provide them an incentive to maintain their service and even expand their service at Port Columbus,” Tabor says.
Airlines covered by the new agreement include Air Canada, Jazz, Air-Tran, American, Chautauqua, Continental, Delta, Midwest, Southwest, United and U.S. Airways.