ITEM NO.        6c_Attach 
DATE OF MEETING: March 10, 2015 


Seattle-Tacoma International Airport 
New Air Service Incentive Program 
Proposed: March 2015 
Summary: 
Port of Seattle, operator of Seattle-Tacoma International Airport (Airport) has adopted the
following incentive program for eligible new air services. The program is designed to attract and
promote new air services and provide risk mitigation for the airlines' start-up operation.
The incentive program for new air service will be reviewed by the Port of Seattle regularly to ensure
that it meets the air service development objectives of the Airport. The program is consistent with
guidance published by the FAA in September 2010, titled Air Carrier Incentive Program Guidebook: A
Reference for Airport Sponsors in accordance with Federal statutes.

Service Category and Eligibility: 
The level of benefit varies depending on the category of new services provided. Each category is
described below as Category A through E. 
Service Category     Description 
Category A         International nonstop air service of 6,000 miles and longer to an unserved
new city 
Category B         International nonstop air service of 4,000 miles to less than 6,000 miles to
an unserved new city 
Category C         International nonstop air service of 2,000 miles to less than 4,000 miles to
an unserved new city 
Category D        New competitive international nonstop air service of 4,000 miles and longer
on an existing route 
Category E         Small community air service for unserved destinations in Washington,
Oregon and/or Idaho 
The unserved new "city" refers to all destination airports in the same city from the Airport, such
as London Heathrow, London Gatwick and London City airports. If a new air service is added
for London Gatwick while London Heathrow service exists, the new service is considered a
Category D service. 

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To be eligible as a new international air service for Category A, B, C and D, the route must be: 
A nonstop service for eligible destinations; 
A minimum of five scheduled round trips each week for Category A, and three scheduled round
trips each week for Category B, C and D, via any aircraft type; 
Year-round scheduled service sold to the public; 
Not served by the same carrier or its subcontract partner carrier previously and canceled within
36 months 
Not considered a replacement service of another service previously served by profit-sharing
Joint Venture agreement carrier on the same city pair. 
To be eligible as a new small community air service for Category E, the route must be: 
A nonstop service for unserved destinations in Washington, Oregon and Idaho; 
A minimum of five scheduled round trips each week via any aircraft type; 
Year-round scheduled service sold to the public; 
Not served by the same carrier or its subcontract partner carrier previously and canceled within 
18 months 
Not considered a replacement service of another service previously served by profit-sharing
Joint Venture agreement carrier on the same city pair. 

Program Structure: 
The incentive program has been devised to balance the needs of attracting new additional service
and of the interests of existing carriers. To this end the program is composed of three parts. 
Part I Incentive: Discounted international arrival facility charge from the standard rate 
Part II Incentive: Temporary waivers of landing fee s and facility charges 
Part III Incentive: Joint Promotional Program 

Program Description: 
Part I Incentive: Discounted international arrival facility charge from the standard rate 
The Airport may apply at its sole discretion its non-aeronautical revenues to adjust the rates of the
international arrival facility charges on an annual basis. This program would alleviate cost pressure
for all international services which otherwise would have shouldered disproportionately high rates
for the Federal Inspection Service (FIS) facility use. Eligibility applies to all existing and new
international services arriving via the Airport's facility encompassing the FIS. The rate is determined
each year as part of the airport rates and charges.



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Part II Incentive: Temporary waive rs of landing fees and facility charges 
Part II Incentives apply to the following categories of new air services.
Common-use Aircraft
Program   International Arrivals
Landing Fee Waiver   Gate Lobby and Ticket
Category     Facility Fee Waiver 
Counter fees1 
Year 1     Year 2     Year 1     Year 2     Year 1     Year 2 
Category A     100%      100%      100%      100%      N/A      N/A 
Category B     75%      75%      100%      75%      N/A      N/A 
Category C     75%      N/A      75%      N/A      N/A      N/A 
Category D     N/A      N/A      N/A      N/A      N/A      N/A 
Category E     N/A      N/A      100%      100%2     100%      100%2 
1 Carriers eligible for Category E incentives (for small community air service) with existing leased
preferential gate and/or ticket counter space at the Airport are eligible for fee waivers only if they
use common-use facilities for the new service. 
2 The second year of eligibility for Category E small community air services is contingent upon the
air carrier meeting a minimum of 75% of their projected operations in the first year of the program. 

Part III Incentive: Joint Promotional Program 
The Airport offers the Joint Promotional Program to the carriers with eligible services. The
available fund is not a cash subsidy to the air carrier, but is intended for promotion of the new air
services in joint collaboration. The program is designed to be utilized in partnership with the
Airport for the purpose of benefiting its business to raise public and industry awareness of airport
facilities and services in conjunction with the new air service. 
In order to utilize the funds, the carriers must 1.) follow the requirement in the Seattle-Tacoma
International Airport Joint Airline Promotional Program Guidelines provided by the Airport; and 2) submit a
qualifying proposal that is reviewed and approved by the Airport as required. The amount of the
fund depends on the Service Category as follows: 
Total of Multi-Year 
Service Category   Promotional Fund      Usage Timeline 
Category A      $455,000           2 years, not to exceed 3 budget years 
Category B      $455,000            2 years, not to exceed 3 budget years 
Category C      $200,000            2 years, not to exceed 3 budget years 
Category D      $200,000           1 year, not to exceed 2 budget years 
Category E       $24,000             $12,000 per year 


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Program Schedule: 
To be eligible for this incentive program, the new air service must be announced and become
publicly available prior to the termination of the current Signatory Lease and Operating
Agreement (SLOA). However, the carrier does not have to be a signatory carrier to be eligible
for the incentive benefit. 

Program Limitations:
If a new air service which received Part II Incentive benefits terminates the operations prior to
completing at least 24 consecutive months of operations, the Port of Seattle reserves the right to
recoup the waived landing fees and terminal facility charges. 
If a carrier defaults in any of its financial obligations to the Port of Seattle, the incentive benefit
privilege will be terminated. 
Port of Seattle reserves the right to determine a carrier's eligibility for the incentive program 
where a service is announced within a reasonably close time frame from another carrier's earlier
announcement to serve the same city pair. 
If the carrier does not fully meet the stated eligibility of a particular category, the benefit to the
carrier will be limited to the lower-tier program's level. 









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