City Announces New Agreement Between SFO-Airlines

City Announces New Agreement Between SFO-Airlines Lease and Use agreement continues Annual Service Payment to the City’s General Fund

Mayor Gavin Newsom today announced that a new, 10-year agreement between San Francisco International Airport and its domestic and international airlines has been approved by the Airport Commission. The agreement will, among other benefits, allow for the continuation of the Airport’s Annual Service Payment (ASP) to the City’s General Fund.

The ASP is calculated as 15 percent of the Airport’s concession revenue each year and last year amounted to $26.8 million in payment to the General Fund as compensation for indirect services provided by the City to the Airport. The Airport estimates that the total of ASP payments through the life of the 10-year agreement could be as much as $330 million. Read more

Posted on March 17, 2010 | The comments to this entry are closed.