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From page 59... ... 59 Detailed information was gathered and compiled during the preparation of this Guidebook for the following consortiums: • AATC Atlanta Airlines Terminal Corporation • CICA TEC CICA Terminal Equipment Consortium • DENCO Denver Consortium • LAXSUL LAX Shared Use Lounge Company • OFFC Oakland Fuel Facilities Corporation • TOGA Terminal One Group Association, L.P. Information related to these consortiums appears throughout this Guidebook, and is highlighted by the Illustrative Examples and Observations included at the end of Chapters 2 through 7. Read the entire page →
From page 60... ... 60 A Guidebook for Airport-Airline Consortiums involved in its operation resulting in a lack of specifics on the consortium formation. The law firm of Trotter, Smith and Jacobs represented the airlines in the formation process and it is assumed that they recommended this structure. Read the entire page →
From page 61... ... Case Studies 61 • Electronic Systems Facility Infrastructure • Employee Parking • Baggage Handling System • Pre-Conditioned Air • Terminal Facilities Maintenance • GSE Maintenance • Ramp Sweeping • Way-Finding • Utilities Service Level There are no performance standards included in the CPTC lease. The airport and City of Atlanta do not require or receive performance reports for AATC. Read the entire page →
From page 62... ... 62 A Guidebook for Airport-Airline Consortiums The AATC does not have capital funding requirements. The City of Atlanta funds all capital projects, and the AATC performs or manages the capital work on behalf of the city. Read the entire page →
From page 63... ... Case Studies 63 Performance Metrics Performance standards are not in effect between the consortium and airport. The AATC Board of Directors establishes performance metrics for vendor contracts based on aviation industry standards and proven methods. Read the entire page →
From page 64... ... 64 A Guidebook for Airport-Airline Consortiums Formation and Governing Documents An outside law firm was not used for legal representation during the CICA TEC formation process, however, the airlines relied upon the advice of airline legal staff and a consultant who was also an attorney. The following provides a summary of the relationship among the governing documents: International Terminal Lease Agreement establishes the relationship between the individual tenant airlines and the City of Chicago, provides for airline-leased areas in the terminal, rental payments to the City, and has a 25-year term that will expire in 2018. Read the entire page →
From page 65... ... Case Studies 65 • Gate Scheduling and Assignment • Baggage Handling System • Pre-Conditioned Air • Airline Passenger Services • FIDS/BIDS • IATA Schedule Coordination Service Level The Consortium Agreement with the City of Chicago outlines performance requirements for CICA TEC including standards of care and the submission of preventative maintenance records. CICA TEC imposes preventative maintenance frequencies on its equipment maintenance contractor, which maintains a computerized maintenance tracking system and provides monthly activity reports to CICA TEC. Read the entire page →
From page 66... ... 66 A Guidebook for Airport-Airline Consortiums as paid-in working capital. The bank loan has been paid in full. Read the entire page →
From page 67... ... Case Studies 67 Consortium Formation Issues and Lessons Learned The following comments were received for lessons learned: The CICA TEC representatives reported that benefits of the consortium included operating and maintaining equipment under a legal entity structure. Previously, contracts were managed by groups of airline station managers without an over-arching legal entity that did not have contracting authority. Read the entire page →
From page 68... ... 68 A Guidebook for Airport-Airline Consortiums Non-Member Release. Non-Member airlines must execute a Non-Member Release to waive liability and hold the consortium and its members harmless. Read the entire page →
From page 69... ... Case Studies 69 Annual Operating Budget. DENCO's operating budget is approximately $10,000 annually. Read the entire page →
From page 70... ... 70 A Guidebook for Airport-Airline Consortiums The non-alliance airlines prepared and issued an RFP for the development of the lounge, including financing options. There were two replies to the RFP. Read the entire page →
From page 71... ... Case Studies 71 Airways, and Philippines Airlines with each Member designating a Member Representative and voting is based on a majority-in-interest basis. The LAXSUL Member Committee is responsible for making all policy decisions for the consortium and is also responsible for providing direction to the contracted lounge manager and operators. Read the entire page →
From page 72... ... 72 A Guidebook for Airport-Airline Consortiums standing with LAXSUL and paid their membership withdrawal fee. Mexicana's departure was a result of its bankruptcy. Read the entire page →
From page 73... ... Case Studies 73 depreciation of capital assets as a deductible expense, which increases the amount LAXSUL is taxed in California. LAWA requires LAXSUL to provide a letter of credit to provide security for the Lease, along with the appropriate level of general liability insurance and indemnification. Read the entire page →
From page 74... ... 74 A Guidebook for Airport-Airline Consortiums Consortium Type OFFC is a non-profit corporation organized in the State of California. The law firm of Sherman and Howard represented the airlines in the formation process, and it is a fuel industry standard to utilize the non-profit corporation as the consortium business entity. Read the entire page →
From page 75... ... Case Studies 75 Service Level There are no performance standards included in the Ground Lease Agreement, but it does require OFFC to provide certain permits, reports and system certifications to the Port. OFFC also provides Preventive Maintenance frequencies, system outages and reporting frequencies on an annual basis. Read the entire page →
From page 76... ... 76 A Guidebook for Airport-Airline Consortiums Budget performance reports are submitted monthly as part of the invoicing process, and formally to the Members at the Annual Meeting. Rates and Charges. Read the entire page →
From page 77... ... Case Studies 77 not focused on lowering costs for the airlines. TOGA was formed so the airlines would control the terminal design, development, and construction process resulting in an improved passenger experience at reduced operating costs. Read the entire page →
From page 78... ... 78 A Guidebook for Airport-Airline Consortiums Terminal One Facilities Use and Lease Agreement authorizes TOGA to fund, develop, and operate JFK Terminal One, defining the rights of each of the airline partners to use the facilities including the cost allocation methodology. Site Lease between the PANYNJ and TOGA leases the Terminal 1 site to TOGA and it requires TOGA to develop and operate a terminal facility. Read the entire page →
From page 79... ... Case Studies 79 • Public Advertising • Baggage Handling System • Pre-Conditioned Air • Terminal Facilities Maintenance • Airline Area Custodial • Wheelchairs, Skycaps • Fuel Storage • GSE Maintenance • Ramp Sweeping • FIDS/BIDS • Retail Concessions • Vending Machines • Way-Finding Service Level Service Level Agreements (SLAs) are included in all vendor service contracts held by TOGA. Read the entire page →
From page 80... ... 80 A Guidebook for Airport-Airline Consortiums The Terminal One project was initially funded with $435 million of IDA revenue bonds that were issued in 1994 with a term through 2024. The bonds were re-financed in 2005 to take advantage of a lower interest rate and to provide an additional $30 million funding for an A380 gate modification project. Read the entire page →
From page 81... ... Case Studies 81 gate usage "use it or lose it" provisions in the updated site lease that give the airport the ability to access underutilized assets. The utilization test is at the PANYNJ's discretion and there are no certain percentages that are used. Read the entire page →

From page 59...

... 59 Detailed information was gathered and compiled during the preparation of this Guidebook for the following consortiums: • AATC Atlanta Airlines Terminal Corporation • CICA TEC CICA Terminal Equipment Consortium • DENCO Denver Consortium • LAXSUL LAX Shared Use Lounge Company • OFFC Oakland Fuel Facilities Corporation • TOGA Terminal One Group Association, L.P. Information related to these consortiums appears throughout this Guidebook, and is highlighted by the Illustrative Examples and Observations included at the end of Chapters 2 through 7.