LA/ONTARIO INTERNATIONAL AIRPORT TO OFFER INCENTIVE PROGRAMS FOR AIR CARRIERS

            (Ontario, California - May 7, 2013) The Los Angeles Board of Airport Commissioners (BOAC) today approved an Air Carrier Incentive Program (ACIP) to encourage new air service or expansion of air service by existing passenger airlines to and from LA/Ontario International Airport (ONT).

The ACIP is designed to support the growth of passenger air service by providing financial incentives in the forms of waivers for rental fees, terminal use fees, and landing fees at ONT.  The ACIP would be available to either new air carriers wishing to start service or existing carriers that wish to expand service.

Participating air carriers must meet and maintain minimum qualifications required under the program.  The overall term of the program is two years, during which time an air carrier may qualify and receive fee waivers from Los Angeles World Airports (LAWA) for new or incrementally increased leased space, terminal use fees, and landing fees for a maximum of 12 months.    

“This incentive program is one of three initiatives we are pursuing to raise awareness and position ONT to the airline community.  We will pursue specific funding sources, which among a number of options, provides for third-party contributions from a variety of organizations interested in ONT’s success,” said Jess Romo, ONT’s airport manager. 

The ACIP will be funded by:  (1) working with the signatory airlines to secure concurrence on the terms of the ACIP; (2) obtaining third-party contributions from tourism, commercial/convention, or other groups interested in supporting the growth of air service at ONT; or (3) a combination of these two initiatives.  Final ACIP document and funding are subject to future Board approval.

ACIPs, in particular, are typically viewed as potentially attractive incentives among airlines considering new service at airports.  With cost-cutting initiatives at ONT and a proposed airline cooperative marketing program, an ACIP offers added consideration for airlines contemplating new service in the region. 

Once the ACIP is implemented, any passenger airline interested in participating must comply with strict guidelines to receive the fee waivers.  Qualifying air service is similar to that under the Airline Cooperative Marketing Program.

ACIP incentives provide a 100 percent waiver of terminal rentals, terminal use fees, and landing fees.  The waivers may last up to one year for year-round service and one season for routes whose duration serve seasonal demand.  Participation will be subject to an application and approval process.        

To qualify, an airline:

a)    Must be an incumbent or a new entrant airline with a fully executed (or in the process of negotiating and executing) ONT signatory or non-signatory airline agreement.

b)    Must be current in all its financial and other LAWA obligations.

c)    Must apply to LAWA's executive director in writing and demonstrate that it proposes ACIP-qualifying service.

Once qualified, an airline must continue to provide ACIP-qualifying air service, maintain a fully­ executed ONT signatory or non-signatory airline agreement, remain current in all its financial and other LAWA obligations, and cure any deficiency in its financial or other LAWA obligations within 30 days after notice from LAWA of such deficiency.

ONT’s ACIP will take effect July 1, 2013 and end June 30, 2015 unless extended by the Board.  Although the ACIP's term is two years, a passenger airline may only participate in the program for up to 12 months.  The two-year term of the program allows for the full eligibility and considers the additional time that will be required to identify funding and obtain funding approval from the Board for the ACIP.