ot .;1 World Airports

May 24, 2007

The Honorable City Council of the City of Los Angeles City Hall, Room 395 Los Angeles, CA 90012

Subject: APPROVE THE BLANKET BOARD ORDER COVERING AMENDMENTS TO THE NON-EXCLUSIVE AIR CARRIER LAX OPERATING PERMITS AT LOS ANGELES INTERNATIONAL

Ontario AIRPORT, AND CONTINUATION OF CURRENT PRACTICES UNTIL JANUARY 31,2008 Van Nuys

Palmdale In accordance with Section 606 of the City Charter, the Board of Airport Commissioners transmits for your approval the Blanket Board Order covering City of Los Angeles amendments to the Non-Exclusive Air Carrier Operating Permits ( list A~~::n,c q Vi;!a~aig¡).:a \~ aYJ i attached) at Los Angeles International Airport, and continuation of current practices until January 31, 2008. Board of Airport Commissioners RECOMMENDA nON FOR CITY COUNCIL .4.,3,' ,;:cU-c',lxr¡¿ ~I ';,; (:,'nt

\',j;21;8:= VClèJS';D 1. APPROVE the Blanket Board Order covering amendments to the Non- '';'f; ";::SliJf~nl Exclusive Air Carrier Operating Permits at Los Angeles International Airport.

. :;'Sc~) r-, ,i,. /,,' ;~;j ii? r',1:::.,lii2i .'\. l_cl"Nson 2. CONCUR in the Board's action authorizing the Executive Director SYIVli3r'ats:iJW2S "'il(j,) ~,¡ì.r"'TSS Gil to execute the amendments to the Non-Exclusive Air Carrier Operating \''.''i'I:S''¡,','i' Permits. C;"l:lS'::;ll r,..lel'g;s~" ,'"C' "-':; ¡: i c:(:" ¡ I '::; L;,: (, ~ 3. FIND that the recommended action is exempt from the requirements of the Environmental Qualiy Act as provided by Article 1/1 (18)(c) of the Los Angeles City CEQA Guidelines.

The Board of Airport Commissioners at their meeting held on May 21, 2007 adopted Board Order No. AO-5063 covering amendments to the Non-Exclusive Air Carrier Operating Permits, subject to the approval of your Honorable Body is attached.

MAYOR'S TRANSMITTAL

Enclosed is the approval by the Mayor and the Office of City Administrative Officer.

There is no fiscal impact to the City's General Fund as a result of this action.

~rf( - vy \j : V'/orld Way r,~, ßox 92216 l_iJs'\rige'es Califorriirl 900092216 Telephone 310646 525L' Facsimile 3tO fi46 OS23 Intrrnet l'i'i""N,lawa,o'g Los Angeles City Council -2- May 24, 2007

CONCLUSION

Please return the attached Amendment to the Department of Airports' Board Office after City Council approval and Certification of that approval.

Two additional copies of the Amendment are enclosed.

Sandr . Miller - Secretary BOARD OF AIRPORT COMMISSIONERS

cc. Trade, Commerce and Tourism Committee Councilmember Hahn, Enc. Councilmember Rosendahl, Enc. Councilmember Weiss, Enc. CAO (Airport Analyst), Enc. CLA (Airport Analyst), Enc. City Clerk's Office, Enc. (one original and two copies) LOS ANGELES INTERNATIONAL AIRPi AIR CARRIER OPERATING PERMIT (ACOP)

xpiration Legal Company Name Operating Name/dba Date ABX Air, Inc. Air_borne Expres~ _ ___ 6/30/2007 Aei-Lingus Shannon Ltd Air Lingu." 6/30/2007 S.A .de C,v. Aero California 6/30/2007.- Aeroflot------,Russian International Aeroflot 6/30/2007 Aerolitoral S.A de C,v. Aerolitoral , 6/30/2007 SA De C.V. :.l\eromexpress , 6/30/2007 Aerotransporte De_Carga Union SA de CA i Aerounion 6/30/2007 Aerotransportes Mas De Carga SA ' 6/30/2007 Aerovias De SA de C,v. Aeromexico 6/30/2007 Aerovias del Continents Americana Avianca 6/30/2007 Flugfelagid Atlantic hP iAir ------Icelandic , 6/30/2007 Air Canada "------Air Canada ___ ,6/30/2007 Air China i Air China Societe Air France Air France Air India Limited Air India Air Jamaica Holdings Limited Air Jamaica Limited -~=m¡i¡¡¡¡- i _n___ Air New Zealand Air New Zealand , 6/30/2007 Air Pacific Limited , 6/30/2007 iAir Pacific Air Tahiti Nui Air Tahiti Nui 6/30/2007 Air Transport int'l LLC . AirTransport In!'i 6/30/2007 Airtran Airways Inc. ¡Airtran Airways 6/30/2007 Inc. Alaska Airlines ., 6/30/2007 All Niepon Airways Co Ltd All Nippon Airways ------! 6/30/2007---- AllegiantAir Inc. . 6/30/2007 America West Airlines Inc. America West ; 6/30/2007 Inc. American Airlines 6/30/2007 American Eagle Airlines Inc. ¡American Eagle 6/30/2007 Inc. !Amerlflight -----6/30/2007 Arrow Air, Inc. ~Arrow Cargo 6/30/2007 Asiana Airlines Asiana Airlines 6/30/2007 Astar Air Cargo Inc. 'Astar 6/30/2007 American_n_ Trans__ Air lATA 6/30/2007_. Atlantic Southeast Airlines, Inc. ASA 6/30/2007 Atlas------Air Inc. 6/30/2007 PLC British Airways 6/30/2007 Capltai Cargo International Capital Cargo International 6/30/2007 Cargo 360, Inc. Cargo 360, Inc. 6/30/2007 Cargolux Airlines International S.A,- I¿argolux Airlines int'l 6/30/2007 Cathay Pacific AirwaysL TD . . Cathay Pacific 6/30/2007 Centurion~r Cargo Centurion Cargo . 6/30/2007 China Airlines Ltd _ i Ghina Airlines. _ 1--__. 6/30/2007 China Cargo Airlines Ltd China Cargo Airlines I 6/30/2007 China Eastern Airlines China Eastern Airlines 6/30/2007 China Southern Airlines China Southern Airlines 6/30/2007 Cielos Del Cielos Airlines 6/30/2007 Mexicana Airlines (CMAl___ Mexicana Airlines , 6/30/2007 Consorcio Aviaxsa SA de C.V. IAviac~a Airlines 6/30/2007 Continental Airlines Inc. Continental Airlines 6/30/2007 Compar-_i~--anam~na de Aviacion S.A_, . Copa Airlines 6/30/2007 Corse-Air International SA CorsAir International 6/30/2007

Page 1 of 3 LOS ANGELES INTERNATIONAL AIRP, r AIR CARRIER OPERATING PERMIT (ACOP)

Expiration Legal Company Name Operating Name/dba Date Custom Air Transport ___ 'Custo_m, Air Transport 6/30/2007 ~Ita Air Lines, Inc. ------6/30/2007 EI AI Israel Airlines, Ltd. , EI AI Israel Airlines 6/30/~ ~~pi~e ~ir!ine~ ~~.:____ r , , 6/30/2007 Eva Airways Corporation _ IEv"Air ----- __230Q, Evergreen International Aviation Inc. Evergreen International Aviation , 6/30/2007 Expressjet Airlines, Inc. c:ontinental Express dba Deltii0nnection 6/30/2007 Fede~al_Express Corp Federal Ex¡ie¡;s _ 6/30/2007 FloridaYJest International Airways Inc.__ West International Airways 6/30/2007 , Inc. Frontier Airlines 6/30/2007 Gemini Air Cargo Inc. Gemini Air Cargo 6/30/2007 Grand Holdings, Inc. Champion Air ____ 6/30/~ Gulf & Caribbean Cargo inc. Gulf & Caribbean Cargo , 6/30/2007 1 6/30/2007 ~§ji~~ Ai_r!.in_~!__I~~~______, ___n______------ Industries, -- Inc. '-I Horizon Air- 6/30/2007 ~Group Inc. I IFL Group : 6/30/2007 !JapanAirlines ~~2~_n Airl!~~~_~~ter_l!ational Company, Ltd 6/30/:1 Jazz Air LP ----- 'Air Canada Jazz 6/30/2007 Jet Blue Airways Corporation JetBlue Airlines 6/30/2007 Kaiilta Air LLC Kalilta Air LLC 6/30/20ci Kilty Hawk Aircargo Inc. Kitty Hawk Aircargo 6/30/2007 KLM_Roy,,1 p_utchlirlines KLM Royaiputch Airlines 6/30/2007 Lines Company Ltd. Korean Air 6/30/2007 Lan Airlines SA Lan Chile Airlines 6/3072 Lan Cargo SA Lan Cargo ______6/:i0Q, Lan Peru SA Lan Peru SA 6/30/2007 Lineas Aereas Coslarricenses S.Ä. LACSA . 6/30/20-67 Lufthansa German Airlines _ _ Luthansa German Airlines ------. 6/30/2007 Lljftransport-Unternehmen GMBH LTU 6/30/2007 1 6/30/2007 ~1"Ysian Airline§ystern Berhad Malaysian Airlines Martinair------Holland Martinalr Holland N.V. ¡ 6/30/2007 Inc. Frontier Jet Express r 6/30/2007 Air International, Inc. Miami Air - , 6/30/2007 Midwest Express Airlines, Inc. tvidwe~t Express Airlines 6/30/2007 MN Airiines LLC , 6/30/2007 Cargo Airlines Ltd. tI ippon NCA I 6/30/2007 Northwest Airlines, Inc Northwest Airlines 6/30/2.Q Omega Air Holdings LLC Focus Air 6/30/2007 9l'_~~-l__lnternationai Inc. Omni Air Express Airlines 6/30/2007 Pace Airlines, Inc. 6/30/2007 Philippine Airlines Philippine Ailin.es ____ P()lar Air c:'l"- ~~ -=__ul2001 gantas~irv;a¥s,_ Ltd. Qantas Airways, Ltd 6/30/2007 Ryan International Airlines __ Blanlnternational Airlines 6/30/2007 Sin¡apore Airi",es c:rpo Pie,Ltd___ Singapore Airllnas Cargo -I 6/30/20Q7 ~gapore !-~Iines Ltd _ Sing~eore Airlines i 6/30/2007 ~-Ðst Airllnes,ln"'______.... SI'ýestAirline¡;, Inc. ¡ 6/30/2007 Inc. Southern Air, Inc. 6/30/2007 ------ Co. ------. Southwest Airlines Co. i 6/30/2007 , Inc. Spirit Airlines I 6/30/2007

Page 2 of 3 LOS ANGELES INTERNATIONAL AIRP, ,- AIR CARRIER OPERATING PERMIT (ACOP)

t:xpiration Legal Company Name Operating Name/dba Date Swiss International Air Lines Ltd, Swiss I 6/30/2007 TACA International Airlines SA T ACA EI Salvador ! 6/30i200 Thai Airways International Ltd, IThai Airways international Ltd. .. 6/30/2007 Tradewinds Air1iriesiric. ¡Tradewinds Airlines- - Inc.---_. 6/30/2007 Transmile Air Services SDN BHD ------¡ 6/30/2007 United Air-- Lines ------Inc. United Air Lines Inc, 16/30/2007 United Parcel Service rransmiieUnited Parcel Air Service Inc. 6130/2007 US Airways ~nc,______US Airways Inc. ~07 USA Jet Airlines Inc USA Jet Airlines Inc, I 6/30/2007 Varig Logistica SA Variglog i 6/30/2tJ Virgin Atlanticl'i""ays Ltd, Virgin Atiantic 6/30/2007 West jet, ariAlberta Partnership West jet, an Alt¡"rta Partnership 6/30/2007 World Airways, Inc. Worid Airways, Inc, 6/30/2007

Page 3 of 3 -f-08251-0000 TRANSMITTAL 01 S"- TO 'DATE COUNCIL FILE NO. Samson Mengistu, Acting Executive Director Department of Airports ~AY 1 -: 2007 FROM COUNCIL OISTRICT The Mayor i i and outside the City

Proposed Blanket Order Covering Amendment of Non-Exclusive Air Carrier Operating Permits for Los Angeles International and LA/Ontario International Airport

Transmitted for further processing. See the Clly ~~: æport '~'hed

KLS:A VM:1 00701921 l1)/

CAO 649-d CAQ File No. PAGE 0150-08251-0000 2

Rates and Charges, c) Security Deposit, d) Airfield Provisions, e) Adrninistrative Requirements, and f) Terminology. An extensive background of the LAX ACOP is contained in a prior CAO report dated June 10, 2002 (CAO file number 0150-00939-0050).

Proposed Amendment

Currently LAX has 115 permitted air carriers (74 passenger and 41 cargo) and LNONT has 17 permitted air carriers (seven passenger and ten cargo). The proposed Amendrnent will extend the current ACOPs to ensure that the provisions for air carriers to conduct operations at LAX and LNONT will not be interrupted. The proposed Amendment will require air carriers to submit an executed amendment to their ACOP by June 30, 2007. Air carriers which fail to meet the deadline will be required to pay non-permitted air carrier landing fee rates, which are 25 percent greater than permitted air carrier landing fees, until signed amendments are received. In addition to landing fees, ACOP provisions include insurance and security deposit requirements and other charges. The Airports 2007-08 proposed budget estimates that revenue of approximately $165 rnillion will be received from flight fees.

Approval of the term extension will allow additional time to resolve several actions and activities which may impact the language in the successor ACOP at LAX, including the following:

. Department staff reports that the rulings of ongoing litigation may have bearing upon the language of the ensuing ACOP. Therefore, negotiating provisions andlor finalizing the language of successor ACOP after the completion of the litigation is a more efficient strategy than presenting a revised ACOP for approval yet knowing its language could require further refining.

. Departrnent staff report that airlines have questioned new environmental provisions and contract language such as the new First Source Hiring Program. Additional tirne is needed to address the concerns with domestic and foreign airlines administrators and provide proper provision implementation.

Additionally, approval of the term extension agreement at LNONT wili ensure continued consistency in the language between the ACOPs at LAX and LNONT. The proposed ACOP Arnendment complies with applicable City contract provisions. Council approval of this request is required pursuant to Charter Section 606. The Department advises that timely consideration of the proposed Amendment is criticaL.

RECOMMENDATION

That the Mayor approve the Department of Airports' proposed Blanket Order covering an Amendment to existing Non-Exclusive Air Carrier Operating Permits (ACOPs) at Los Angeles International Airport and LNOntario International Airport and continue current practices for the period July 1, 2007 through January 31, 2008, and return the request to the Departrnent of Airports for further processing including Council consideration. Los Angeles World Airports

BOARD ORDER NO. AO-5063

BLANKET ORDER AUTHORIZING AMENDMENTS TO NON-EXCLUSIVE AIR CARRIER OPERATING PERMITS FOR LOS ANGELES INTERNATIONAL AIRPORT AND LAONTARIO INTERNATIONAL AIRPORT, AND CONTINUATION OF CURRENT PRACTICES UNTIL JANUARY 31,2008.

Section 1. WHEREAS, there has been negotiated Amendments to Non-Exclusive Air Carrier Operating Permits for Los Angeles International Airport and LA/Ontario International Airport, and continuation of current practices until January 31,2008; and

LAX WHEREAS, the Non-Exclusive Air Carrier Operating Permit (ACOP) is the primary Ontario legal instrument used to set standard operating terms and conditions and to impose the collection of fees covering the use of landing facilities for commercial air carrier Van Nuys aircraft operations at Los Angeles International Airport ("LAX"). Landing facilities are Palmdale defined as the common use areas of the airfield, including runways, taxiways, service City of Los Angeles roads and common use ramps. Currently, Board Order No. AO-4814 authorizes the issuance of five-year Non-Exclusive ACOPs at LAX for the period beginning July 1, Antonio R. Villaraigosa Mayor 2002 and expiring no later than June 30, 2007; and Board of Airport WHEREAS, the ACOP is an extremely significant five (5) year agreement that CommissIoners defines and sets the standard operating terms, conditions and requirements of air Alan I. Rothenberg carriers conducting operations at LA or LA/Ontario International Airport ("LAONT"). President An extension to the current ACOP at LA will allow for the resolution of several Valeria C. Velasco current activities and actions that may impact the language in the successor ACOP: Vice President 1) The existing litigation before the U.S. Department of Transportation (DOT) Joseph A. Aredas Michael A. Lawson requires that the DOT issue its ruling on June 15, 2007. Although it is not Sylvia Patsaouras expected to significantly impact the ACOP, there may be something in the ruling Fernando M. Torres.GII WaltcrZifkin that would dictate a change to the ACOP, and such a change could not be negotiated before the current June 30th expiration. Samson MenglslJ A~ting t.ocutivo Director 2) The new ACOP is different from the existing ACOP, in part, due to the inclusion of new environmental provisions and the First Source Hiring Program as a result of the LAX Master Plan Mitigation Monitoring and Reporting Program, Community Benefits Agreement, and the Stipulated Settlement Agreement. The Airlines have raised several questions as to those provisions, and staff wants to address those concerns and properly implement the contract language. Aiso, given the large number of foreign carriers who will be impacted by the ACOP, it wil take some time to address these issues with them. 3) The existing litigation with directly involves the ACOP. The post tria! briefing schedule c-Onc!udes with the filng of reply briefs on May 21510 The judge wil rule after that. Again, it would be better to finalize the language in the ACOP after the results of that ruling; and

WHEREAS, in this interim period, pending completion of a comprehensive review and resolution of matters that may impact the language of the ACOP, it is important that Los Angeles World Airports (LAWA) have signed documentation with the air carriers which extend and maintain enforcement of the current provisions of the ACOP, which include insurance and security deposit requirements. Those air carriers that adequately execute the term amendment to their current ACOP at LA

1 \t\,'arld \'Vay r.o. flux 97716 Los ,A.ngcles California 90009-7:.16 Telephone 3106465252 rcicsirTiile 310 G'ÎG 0573 Iriterrwt wI'l'i.l,iwa.org Board Order No. AO-5063 -2-

and properly adhere to the ACOP provisions wil continue to have the permitted landing fee rate extended to them; and

WHEREAS, this Blanket Order wil extend the term of expiring ACOPs until January 31, 2008, and continue current practices and allow the Executive Director, or designee, to continue to execute new ACOPs at LAX pursuant to Board Order No. AO-4814 with an expiration date no later than January 31, 2008; and

WHEREAS, to ensure the continued consistency in the language between the Operating Permits at LA and LA/ONT, this Blanket Order wil also extend the Non- Exclusive ACOPs for LAONT under Board Order No. A0-4815, inciuding the ability to continue to execute new ACOPs at LA/ONT, with an expiration date no later than January 31, 2008; and

WHEREAS, this Blanket Order will continue current practice and its impact on the Airport Revenue Fund; and WHEREAS, the Issuance of leases and renewals, amendments or extensions thereof, granting use of an existing facility at a municipal airport involving negligible or no expansion of use is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Aricle ILL Class 1 (18)(c) of the Los Angeles City CEQA Guidelines, as amended by the City Council on July 31, 2002; and WHEREAS, permittees are subject to the provisions of the Service Contractor Worker Retention and living Wage Ordinances; and

WHEREAS, permittees wil be required to submit an Affirmative Action Plan, and comply with the provisions of the Affirmative Action Program; and

WHEREAS, permittees must provide a Business Tax Registration Certificate number or Letter of Exemption by the City Office of Finance prior to the execution of the Non- Exclusive ACOPs; and

WHEREAS, permittees will be required to comply with the provisions of the Child Support Obligations Ordinance; and

WHEREAS, the Non-Exclusive ACOPs require that permitted carriers maintain approved insurance documents on file with LAWA Risk Management Division; and

WHEREAS, permittees may be required to comply with the provisions of the First Source Hiring Program for all non-trade LA airport jobs once the program is formally implemented by LAWA; and

WHEREAS, actions taken on this item by the Board of Airport Commissioners will become final upon the earlier of approval by the Los Angeles City Council or the expiration of 30 days after submission to the City Council pursuant to the provisions of the Los Angeles City Charter Section 606;

NOW, THEREFORE, IT IS ORDERED that it is in the best interest of the City of Los Angeles to adopt the Staff Report, to make and enter into said Amendments to Non- Exclusive Air Carrier Operating Permits, which are exempt from CEQA requirements, and the Amendments to Non-Exclusive Air Carrier Operating Permits as now before this Board are hereby approved, and the Executive Director of the Department of Airports is hereby authorized and directed to execute these Amendments to Non- Board Order No. AO-5063 -3-

Exclusive Air Carrier Operating Permits on behalf of this Board and the City of Los Angeles upon approval as to form by the City Attorney, and upon approval of this Order and said Amendments to Non-Exclusive Air Carrier Operating Permits by the City CounciL.

Section 2. IT IS FURTHER ORDERED that the Secretary of the Board is hereby directed to transmit to the City Council of the City of Los Angeles certified copies of this Order, together with copies of said Amendments to Non-Exciusive Air Carrier Operating Permits for appropriate action of its part, in accordance with Section 606 of the Charter of the City of Los Angeles.

Section 3. IT IS FURTHER ORDERED that the Secretary of the Board certify to the passage of this Order and cause the same to be published once in a newspaper of general circulation in the same manner as Ordinances of the City of Los Angeles are published, upon approval thereof by the City CounciL.

000

I hereby certify that the foregoing is a true and correct copy of Board Order No. AO-5063 adopted by the Board of Airport Commissioners at a Special Meeting held Monday, May 21,2007.

Sandra~~ J. Miller - Secretary BOARD OF AIRPORT COMMISSIONERS FIRST AMENDMENT TO NON-EXCLUSIVE OPERATING PERMIT BETWEEN THE CITY OF LOS ANGELES AND , A PERMITTED CARRllR, COVERIG OPERATIONS AND THE USE OF LANDING FACILITIES FOR AIR CARRIER AIRCRAFT OPERATIONS AT LOS ANGELES INTERNATIONAL AIRPORT

This FIRST Amendment, made and entered into as of this Thirtieth (30th) day of June, 2007, at Los Angeles, California by and between the City of Los Angeles, a municipal corporation ("City"), acting by and through its Board of Airport Commissioners ("Board") and (hereinafter collectively referred to as "Permittee"), is made with reference to Non-Exclusive Operating Permit between the City and Permittee, a Permitted Carrier, covering Operations and the Use of Landing Facilities for Air Carrier Aircraft Operations at Los Angeles International Airport ("Permit"). City and Permittee do now agree that "Section 4. Term" of the Permit is hereby amended by deleting the numerals and words "terminate no later than midnight on June 30, 2007," and replacing the said deleted numerals and words with "terminate no later than midnight on January 31, 2008,". It is understood and agreed by and between the parties that, except as specifically provided herein, this First Amendment shall not, in any manner, alter, change, modify or affect any of the rights, privileges, duties or obligations of either of the parties under the Permit and except as expressly amended herein, all of the terms, covenants and conditions of the Permit and all amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, CITY has caused this FIRST AMENDMENT to be executed as of the day and year written above.

APPROVED AS TO FORN!: CITY OF LOS ANGELES Rockard J. Delgadilo, City Attorney

Date: By By: Executive Director Deputy/Assistant City Attorney Department of Airports

#242676 i The foregoing First Amendment is hereby accepted and the undersigned hereby agrees to be bound by the conditions herein stated as of the day and year written above.

ATTEST: *

By By Secretary (Signature) Signature

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#242676 2