Pocatello Regional Airport
Delta Revenue Guarantee Agreement
Obtained by Public Record Request
On 08/17/23, the Council approved a new Minimum Revenue Guarantee (MRG) up to $500K with Delta Airlines for the period between September 5, 2023 to March 5, 2024 for twice daily service.
Per this agreement, an invoice won't be issued until approximately 60 days following the end of the 6-month guarantee period, however monthly reports detailing the variance between total revenues received and the minimum required revenue are provided to the city. Per P.A.G.E.'s public record request for these reports, the revenue losses have far exceeded the approved $500K.
The 6-month minimum revenue guarantee period with Delta ended 03/05/24. Here's one more month of data. January's losses are the highest of the 5 months reported. Currently unknown, is the data from the month of February (+ 5 days of March.) Per the signed 08/17/23 agreement, the City agreed to pay a maximum of $500K while the data indicates losses from the first 5 of 6 months at approximately $1.3M.
Lacking any additional formal action by the Council, the City is contractually committed (per the 08/17/23 agreement) to ONLY A MAXIMUM of $500K MRG. Since that cap was exceeded 2 months into the agreement, why has no action taken place and the public left in the dark?
08/17/23 Agenda Item # 21 "Airport Revenue Guarantee Agreement" PDF:
https://www.pocatello.gov/AgendaCenter/ViewFile/Item/4002...
Scheduled Fight Statements Provided to City of Pocatello by Delta per Delta Revenue Guarantee Agreement
Obtained by Public Record Request
January 2024
December 2023
November 2023
October 2023
September 2023
6/2/22 - City Council Approval of SkyWest Subsidy
Effective Date
1/1/2022 -12-31/2022 or until funds exhausted
Additional Terms
None
Invoiced Payments
1st Qtr: $210,896.82
2nd Qtr: $255,955.32
3rd Qtr: $253777.18
4th Qtr: $ 79,371.57
Expended to Date: (thru 4/19/23)
$800,000
SkyWest Absorbed Revenue Shortfall Due to Max Subsidy Terms
Dec: $78,549.71
Nov: $14,728.88
Total: $93,278.59
Remaining Subsidy
$0
Source of Funding
Tax-payer levied dollars used to pay subsidy then Federal Covid-related grant monies used to cover that re-allocated revenue.
Subsidy Amount
$800,000
Summary of Airport/SkyWest Subsidies 2022-Current
12/15/22 - City Council Approval of SkyWest Subsidy
Effective Date
1/1/2023 -12/31/2023 for maximum subsidy.
01/01/2023 - 03/30/2023 for maximum quarterly subsidy.
Waiver of landing fees/rents for term of each agreement.
********************
Mayor redefined 2nd QTR as 03/01/2023 -05/30/2023 in new AIRPORT TRANSPORTATION SERVICES AGREEMENT signed on 03/08/2023.
Additional Terms
*Maximum 1st QTR subsidy of $346,459.
*Mayor granted authority to sign subsequent 2023 QUARTERLY agreements
*Waiver of all Skywest landing fees and rents for term of agreements (No numbers provided to Council - P.A.G.E. estimates @ $22K - $30K per QTR.
Invoiced Payments
1st Qtr 2023: $346,459
2nd Qtr 2023
$207,758
Expended to Date
Thru 04/19/23
$346,459
Thru 06/30/23
$554,217
SkyWest Absorbed Revenue Shortfall
Due to Max Subsidy Terms
MAR: $41,877
Remaining Subsidy
As of 04/19/23
$663,541
As of 06-30-23
$455,782
Source of Funding
Tax-payer levied dollars used to pay subsidy then Federal Covid-related grant monies used to cover that re-allocated revenue.
Subsidy Amount
$1,010,000
3/8/23 - Mayor Approval of SkyWest Subsidy
Effective Date
03/01/2023 -5/30/2023
Additional Terms
Maximum 3-month subsidy (Mar, Apr, May) as $406,625
See Above
See Above
See Above
See Above
See Above
Subsidy Amount
Subject to 12/15/22 annual maximum