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February 25, 2022

Ontario Airport in the US sanctions revised budget to reduce airline costs

The terminal rental rate has dipped from $99.38 to $80 per square foot per year.

The Ontario International Airport Authority’s (OIAA) airport commissioners board has approved a revised budget, aimed at reducing landing fees and other airline expenses.

This revision is retroactive from 1 January.

The revised landing fee rate stands at $1.60 per 1,000lb of landed weight, signifying an 8.3% decrease from $1.71.

Meanwhile, the terminal rental rate has come down from $99.38 to $80 per square foot per year, indicating a 19.5% drop.

The cutback comes after the airport experienced faster growth in passenger traffic.

As a result, the airport in California, US, earned ‘higher-than-projected’ revenues from non-airline sources, including parking, rental cars, food and beverage, as well as news and gift concessions.

Furthermore, the airport’s operating expenses were reduced by $2.1m in the second half of 2021.

In recent months, passenger footfall at the airport reached near pre-pandemic levels.

During the last six months of 2021, the airport’s passenger activity was 94.7% of the same period in 2019.

OIAA commission president Alan D Wapner said: “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.

“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.”

Ontario International Airport deputy CEO Atif Elkadi said: “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 of our fiscal year. Moreover, we are committed to doing all possible to continue this trend.”

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