THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THIS MOTION.
This action will set a Public Hearing date to consider adoption of a Resolution to amend Chapter 39, Section 39.2, Subsection 39.2.n. of the Broward County Administrative Code (Code) to amend the Airline Passenger Service Incentive Program (Incentive Program) in order to provide incentives for new service at FLL.
On April 23, 2013 (Item No. 11), the Board approved an update to the Airport's Incentive Program to promote new airline service. The Incentive Program allows the Director of Aviation to provide credits against an airline’s fees and charges payable to the County for providing service to a Target Area. Fees to be credited may include all or a combination of landing fees, remote parking use charges, and per use gate and facilities charges. Credits will apply for one year and will be effective upon the commencement of such service. The Director of Aviation may also approve the use of Aviation Department funds for marketing and promotion of eligible service in an amount appropriate to the route and not to exceed normal fiscal expenditures.
The Broward County Aviation Department (BCAD) recognizes the changing travel patterns of visitors to/from the region, as well as the population and demographic changes that have occurred in Broward County. Additionally, there are emerging national economies grouped under a BRICS denomination, representing Brazil, Russia, India, China and South Africa, which are potential untapped markets for FLL. The BRICS members are all developing or newly industrialized countries that are distinguished by their large, fast-growing economies. As of 2013, the five BRICS countries represent almost 3 billion people, with a combined nominal Gross Domestic Product of $16 trillion. In order to remain competitive with other airports in the region, BCAD desires to amend the Incentive Program to add a section on specific incentive credits for eligible airlines proposing service to the major emerging markets within the BRICS group.
The proposed changes to the Code in Subsection 39.2.n.5.c. (Exhibit 2) will include a new section for credit incentives for routes within the BRICS countries. The current Incentive Program limits do not provide BCAD with a competitive position versus the other regional airports. Should an opportunity present itself for international service from FLL to a country in the BRICS group, the proposed changes will allow BCAD to be able to provide competitive incentives for those airlines to operate from FLL.
The proposed changes will be effective upon Board approval. |