Ontario International Airport Authority approves budget revision to lower airline fees

posted on 25th February 2022 by Eddie Saunders
Ontario International Airport Authority approves budget revision to lower airline fees

The Ontario International Airport Authority Board of Airport Commissioners today 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 January 1.

The new landing fee rate is $1.60 per 1,000 pounds of landed weight, down 8.3 percent from $1.71.

The terminal rental rate is reduced 19.5 percent to $80 per square foot 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’s 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% 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,” said 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.”

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.

“Moreover, we are committed to doing all possible to continue this trend.”