Mayor Kasim Reed and the City of Atlanta Reach Groundbreaking Agreement with Delta Air Lines, AirTra

After a series of recent negotiations, Mayor Kasim Reed and the City of Atlanta have reached a groundbreaking agreement with Delta Air Lines, AirTran Airways, ASA and other airlines that serve Hartsfield-Jackson Atlanta International Airport.

The agreement amends Delta Air Lines' Central Passenger Terminal Complex lease, which was extended in 2009, and ensures Airport efficiency while maintaining safety, security and world-class customer service for nearly 90 million travelers each year.

This partnership enables the successful, timely completion by 2012 of the Maynard H. Jackson Jr. International Terminal, which will spur economic growth and development for the region by accommodating higher numbers of international passengers and increased air cargo service, destinations and routes.

"I am pleased that the City of Atlanta, Delta Air Lines, AirTran Airways, and our other airline partners, have reached an agreement that ensures the viability of Hartsfield-Jackson Atlanta International Airport for years to come," Reed said. "This agreement is a strong example of a public/private partnership, with the mutual goal of economic growth and prosperity for the Atlanta region, benefiting both its residents and businesses.

"This lease agreement strengthens the fiscal position of the Airport and the City of Atlanta as we move forward to successfully secure funding in the financial bond market later this year for the completion of the international terminal."

Under the terms of the agreement, the airlines will pay a supplementary terminal rental payment of $30 million, spread over a four-year fiscal period from 2013 to 2016, to Hartsfield-Jackson over the remainder of the current lease, which expires in 2017. The supplementary payments will help to fund the international terminal and will enable the Airport to retain adequate financial reserves to maintain its credit rating. The supplemental payments, paid in equal monthly installments, are as follows: $12 million in FY13; $8 million in FY14; $5 million in FY15; and $5 million in FY16.

The Airport would make contractual payments to the airlines contingent upon the strength of the economic recovery and the Airport's financial indicators during the fiscal period 2015 to 2017. The Airport's contractual payments range between zero to $30 million, contingent upon Hartsfield-Jackson's achieving debt service coverage of more than 1.50 for FY15, FY16 and FY17.

"This agreement is the latest example of the partnership between Delta and the City of Atlanta, which has provided significant benefits to the city as well as to Delta, our employees and our customers for decades," said Richard Anderson, chief executive of Delta Air Lines. "The completion of the Maynard H. Jackson Jr. International Terminal will strengthen Atlanta's standing as a major international gateway and provide a world-class facility for Delta's international customers."

"Being a good corporate citizen means doing the right thing for the good of the community and today's announcement is the right thing for Hartsfield-Jackson Atlanta International Airport, the people of Atlanta and AirTran Airways," said Bob Fornaro, AirTran Airways' chairman, president and chief executive officer. "The clear leadership Mayor Reed has shown in coming to this agreement is exactly the kind of strategic vision and foresight needed to maintain Hartsfield-Jackson's position as a global leader and an important regional economic engine."

"Through this partnership with Delta, AirTran and other carriers, Hartsfield-Jackson Atlanta International Airport is poised to retain and sustain its dominance as the busiest and most efficient airport in the world," said Robert Kennedy, interim aviation general manager at Hartsfield-Jackson. "The Airport looks forward to working productively and cooperatively with its airline partners."