OIAA approves budget revision to lower airline fees
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Posted: 25 February 2022 | International Airport Review | No comments yet
The Ontario International Airport Authority has approved a budget revision to lower landing fees and airline costs to ensure Ontario International Airport is even more attractive to air carriers.
Credit: Ontario International Airport (ONT)
The Ontario International Airport Authority (OIAA) Board of Airport Commissioners has approved a budget revision to reduce landing fees and other airline costs to make the Southern California airport even more attractive to passenger and cargo air carriers.
The reduced charges are retroactive to 1 January 2022. The new landing fee rate is $1.60 per 1,000 pounds of landed weight, down 8.3 per cent from $1.71. The terminal rental rate is reduced 19.5 per cent to $80 per ft2 per year from $99.38.
The reductions are possible because of faster growth in passenger volume contributing to higher-than-projected revenues from non-airline sources such as parking, rental cars, food and beverage, and news and gift concessions. In addition, airport operating expenses were reduced $2.1 million in the last six months of calendar year 2021.
Ontario International Airport’s (ONT) passenger volume has approached near pre-pandemic levels in recent months. In the final six months of calendar year 2021, passenger activity was 94.7 per cent of the same period in 2019.
“With the transfer of Ontario International to local control in 2016, we pledged that our Southern California aviation gateway would strive to offer a cost structure attractive to airlines as they make route planning decisions,” commented OIAA Commission President, Alan D. Wapner. “Now, as the aviation industry prepares to emerge from the COVID-19 pandemic, it is more important than ever we keep airport costs as low as possible for our airline partners. Air carriers need to know where they can operate most profitably, and we are proud to say that is Ontario International Airport.”
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Deputy Chief Executive Officer, Atif Elkadi added: “We are pleased to share our increased non-airline revenues and lower operating costs with our airline partners through a reduction in landing fees and terminal rental rates for the second half our fiscal year (2022). Moreover, we are committed to doing all possible to continue this trend.”