Approval of Reimbursement to American Airlines for the Interim Relocation Costs from Terminal 3 to Terminal 2 in an Amount Not-to-Exceed $4,800,000

No. 10-0048 Resolution approving reimbursement to be taken in the form of a rental credit to American Airlines for the costs related to their interim relocation in an amount not-to-exceed $4,800,000.

Mr. Fermin said that this item is part of a larger plan to vacate airlines out of Boarding Area B for its demolition and refurbishment, and for the longer term renovation of Terminal 1 as well as to situate the Star Alliance Partners in Terminal 3, and the One World Alliance Airlines in Terminal 1 and the adjacent International Terminal Boarding Area A. American’s move to Terminal 2 will free up Boarding Area E in Terminal 3. Once E is renovated then Continental and US Air will move out of Boarding Area B to the former American Airlines area in Boarding Area E. Previously, Air Canada moved from Boarding Area B to Boarding Area E as part of this plan. That leaves Southwest and Alaska in Boarding Area B. We already have an agreement with Alaska for their move out of Boarding Area B when we demolish the western wing of B leaving Southwest in their current four gates in B with the ability to expand into USAir’s vacated gates in Boarding Area B. Alaska will then move to the I.T. after Virgin America moves to Terminal 2 helping to keep the International Terminal Boarding Area A utilized with Virgin America’s move. Eventually, when the longer term renovation of Terminal 1 is done, American will move to its permanent home in Terminal 1 adjacent to its One World Alliance partners who are all in the I.T. Boarding Area A.