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April 18, 2022

LAX’s new incentive programme for airlines secures green light

The new incentive programme will be in effect until 1 May 2024 and can be utilised by new and existing airlines at LAX.

Los Angeles Board of Airport Commissioners (BOAC) in the US has given the go-ahead to a new Airline Service Incentive Program for airline companies planning to begin a new or re-start their services from the Los Angeles International Airport (LAX) and select international markets.

The programme aims to offer financial and marketing assistance to the airlines and underlines Los Angeles World Airports (LAWA) objective to open services to new and underserved markets.

BOAC president Beatrice Hsu said: “LAX’s Airline Service Incentive Program will strengthen our position as the premier West Coast gateway to the world by providing an incentive for airlines to operate and thrive at one of the busiest airports in the world.

“This investment will pay dividends as we recruit new service to underserved and unserved international markets and more quickly bring back service, we lost due to the Covid-19 pandemic.”

Beginning 1 May this year, the new incentive programme will be in effect 1 May 2024, and will benefit both new and existing airlines at LAX.

The scheme can be availed by airline companies offering a new international passenger service for a destination that has not been served previously or that has been unserved from LAX for at least two years. It must be within a country, region or market identified as a priority by LAWA.

Airline companies meeting the requirements will be entitled for reduced landing fees through quarterly credits from LAWA.

In the first year, landing fee will be completely waived off by LAWA and in the second year it will be reduced by 50%.

Airlines offering seasonal services can avail the benefit of 50% reduction in landing fees per year for up to two years.

Additionally, LAWA plans to support new airline companies to promote their inaugural services at LAX.

Currently LAWA will focus of some of the priority markets including some popular destinations located in Asia, Europe and Latin America, inclusive of the Caribbean.

For airlines that are already operating from LAX, LAWA has allocated up to $10m in landing fee credits available for new service routes on a first-come-first-served basis apart from marketing assistance. However, LWAW also specified that an airline company will not be eligible for incentives if it switches service from a currently served market to a new priority market.

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