LA/ONTARIO INTERNATIONAL AIRPORT ENTERS INTO AGREEMENT WITH AIRLINE CONSORTIUM THAT COULD REDUCE BUDGET BY $6.6 MILLION

            (Ontario, California - May 7, 2013) The Board of Airport Commissioners today approved a terminal lease and license agreement with the Ontario International Airport Terminal & Equipment Company, LLC (ONT-TEC), for the lease of terminal space and the maintenance and operation of terminal equipment at LA/Ontario International Airport (ONT).

Under the terms of the five-year lease agreement, ONT-TEC, a newly formed consortium representing air carriers, will provide custodial services in defined aeronautical areas at ONT.  The consortium will also operate and maintain certain mechanical systems in the passenger terminals including passenger boarding bridges, inbound/outbound baggage conveyor systems, and related checked-baggage inspection systems.

 “This cost-cutting measure will greatly reduce expenses at ONT and at the same time increase profitability to airlines – an important goal for airlines in today’s market,” said Jess Romo, airport manager at ONT.  “The lease will generate approximately $109,333 in revenue to Los Angeles World Airports in the first year and approximately $546,665 over the five-year term.  In addition to revenues, ONT’s operating budget will be reduced by approximately $6,635,900 in Fiscal Year 2013-14.”

Since 1998 when the terminals opened, custodial services are performed by a combination of LAWA employees and airline-hired contractors.  LAWA is responsible for all public areas of the terminals, while airlines are responsible for leased or airline-controlled areas.  A transition to one entity being responsible for all areas of the terminal complex offers the opportunity to gain efficiencies in staffing and reduces employee costs in performing these services.

In considering this transition to third-party contractors, LAWA met with appropriate union and employee representatives early in the process.  Similar to five other employee redeployments that have occurred since 2008, impacted employees would be placed into positions at LAX.

“This is one of ONT’s largest cost-containment measures,” said Romo.  “The savings are huge and everyone benefits .  It’s sound and makes the best sense in today’s economy.”