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AIRPORTS COMMITTEE

Meeting Date:	04/27/2016
Subject: JetSuite Scheduled Charter Service
Submitted For:	Keith Freitas
Department:	Airports
Referral No.:
Referral Name:
Presenter:		Contact:	Beth Lee, (925) 681-4200

Information

Referral History:

On December 30, 2015, Airport staff received an email request to meet with representatives of JetSuite to discuss a possible new venture at the Buchanan Field Airport. JetSuite was in process of launching a new scheduled charter service business called JetSuiteX and Buchanan Field Airport was one of the northern California airports of interest for this business.

The new scheduled charter service would serve various cities that are within a 90 minute flight distance from the departure airport. Initially, flights are expected to operate between northern and southern California (the Los Angeles Basin). Other connection areas may include Las Vegas, Phoenix, Seattle and San Diego. Buchanan Field is one of the airports JetSuiteX is considering using as part of its operation of this new service. The company’s site selection is now expected to be publicly announced in mid to late March 2016, with service possibly beginning within a few weeks of the announcement.

The company intends to use quiet, modified Embraer 135 jets and to make a maximum of 30 seats available per flight, which will provide passengers with an upscale cabin experience. JetSuiteX advises that it expects to initiate at least one flight per day between the Bay Area and general aviation airports in the Los Angeles basin. If Buchanan Field is chosen, the company could operate out of the former terminal building on the north end of John Glenn Drive.

On March 1, 2016, the Board of Supervisors approved a month-to-month rental agreement between the County and JetSuiteX in order to permit service to operate as soon as possible. If the proposed business is successful, the County and JetSuiteX may choose to enter into a long-term lease at a future date. If so, that agreement would be subject to the approval of the Board of Supervisors.

Referral Update:

Not Applicable

Recommendation(s)/Next Step(s):

This is a general discussion of the proposed business activity and status.

Fiscal Impact (if any):

There is no impact on the County General Fund. If Buchanan Field is chosen by JetSuiteX as a site of operation, staff will consider making facility and/or site improvements to accommodate this use at an estimated cost of $50,000 to the Airport Enterprise Fund. It is expected that any cost incurred by the Airport Enterprise Fund would be recouped within one year in the form of rent and increased fuel flowage fees. Assuming JetSuiteX operates three flights per day, five days per week, with 20 passengers per flight, the expected cash flow to the Airport would be approximately $10,000 per month ($3,800 from fuel flowage and the balance from passenger enplanement). In addition, the County General Fund could realize sales tax and other revenues.

Attachments
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