Landing Fees And Terminal Rates And Charges Reduced By Board Of Commissioners

The Memphis-Shelby County Airport Authority (MSCAA) Board of Commissioners has voted to approve the MSCAA budget for fiscal year 2019 (July 1, 2018 through June 30, 2019) which includes significant reductions in some airport fees.

This $117.9 million Operations and Maintenance (O&M) budget sets the fees and charges that the airlines pay to the Airport Authority and establishes spending authority for the MSCAA staff. This budget does not include construction project expenditures. The MSCAA budget was unanimously supported by the Memphis International Airport’s airline committee partners and approved by the Board’s Finance and Administration Committee.

The most significant highlights in this budget include a 13.3 percent decrease in the proposed terminal rates and charges, with a $69.81 average per square foot rate compared to $80.51 per square foot in FY 2018. Terminal rental fees are determined by dividing the terminal’s operating cost by the total rented space, and the fees are paid by the airlines, vendors and other tenants. The decrease in terminal rates is due to lower terminal operating costs and increased non-airline revenues.

Landing fees were also reduced to a rate of $1.2397 per 1,000 lbs. of landed weight compared to last year’s rate of $1.2464.

Terminal rent and landing fees comprise about four percent of airlines’ overall operating costs and do not have a significant effect on airfares.

Highlights of the FY 2019 MSCAA budget:

• Total revenues/other sources: $117,932,300
• Total expenses, capital outlay, debt service, and debt service coverage: $117,932,300
• Landing fees: $1.2397/thousand lbs., compared to $1.2464 last year
• Terminal square foot rate: $69.81, compared to $80.51 last year

(Source: Memphis Airport news release)

FMI: www.flymemphis.com