PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA  POLICY AND STAFF BRIEFING 
Item No.        6c 
Date of Meeting   February 24, 2009 
DATE:    February 17, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    James R. Schone, Director, Aviation Business Development 
Deanna Zachrisson, Manager, Aviation Concessions Business 
SUBJECT:  Staff briefing on impacts to concessionaires on Concourses A and D and possible
adjustments to lease terms for Prime Concessionaires Host International (Host),
Seattle Restaurant Associates (SRA), Concessions International (CI) and Airport
Management Services, LLC (dba Hudson News) and their subtenants. 
TODAY'S BRIEFING
Today"s briefing will provide information about Port staff efforts to address impacts to certain
concessionaires at Seattle-Tacoma International Airport (Airport). In 2009, the Airport expects
significant scheduled enplanement losses in Concourses A and D. There are a total of ten
potentially affected units in Concourse A and nine units in Concourse D. These are a
combination of food and beverage (seven each in Concourses A and D), four news/gift retail and
one bookstore (Please refer to Exhibits A and B).
The reduction of scheduled enplanements will present business challenges for concessionaires
located on Concourses A and D. The reduction in scheduled enplanements may lead to a lack of
adequate sales opportunity to support operations. 
The Lease and Concession Agreements of all four prime concessionaires do not require the Port
to mitigate the effects of the reductions because airport-wide enplanements are not anticipated to
drop by 20%, which is the threshold for relief in the agreements. Nonetheless, staff has worked
to develop voluntary measures that would provide options to owners of affected units to address
the loss of scheduled enplanements near their units. 
The potential options are summarized as follows: 
1. Concessionaire continues to operate unit under modified lease terms. The tenant would be
relieved of the requirement to pay monthly "guaranteed rent" (known as Minimum Annual
Guarantee, or MAG), and pay only percentage rent based on actual sales. Percentage rent
reduction also may be considered.

COMMISSION AGENDA  POLICY AND STAFF BRIEFING 
T. Yoshitani, Chief Executive Officer 
February 19, 2009February 18, 2009 
Page 2 of 2 

2. Concessionaire closes unit with the intent of re-opening when enplanement levels return. The
Port would provide a rent credit equivalent to the value of depreciation during the period of
closure. 
3. Concessionaire closes unit permanently and is purchased by the Port at its net book value. 
BACKGROUND 
2009 Concourse Changes 
In the fall of 2008, Sea-Tac"s #1 and #6 ranked carriers (by enplaned passengers) announced
changes to their operations which staff believe will take effect in the first half of 2009. These
changes will result in scheduled enplanement losses of such a magnitude that normal concession
operations may not be possible in the affected concourses. 
Scheduled enplanement levels in Concourse D will drop dramatically in all parts of the
concourse as a result of Alaska Airlines" consolidation of gate use to the North Satellite and
Concourse C. Alaska will retain only three preferential gates among gates D1-D11. Departures
from the non-preferential gates ("common use") are expected to be very limited. Consequently,
scheduled enplanement levels in Concourse D are anticipated to drop in excess of 35% compared
to 2008. The reduction in enplanements and loss of concession sales are likely to occur in early
March. 
The merger of Delta Airlines and Northwest Airlines will result in a consolidation of the carrier"s
service in the South Satellite. Delta/Northwest will cease use of Delta"s preferential gates near
the end of Concourse A, which will lead to a reduction of scheduled enplanements of
approximately 26% for the entire concourse relative to 2008 levels. However, the current Delta
gate area A10-A14 will sustain a much greater loss. These gate changes and the impact to
concession sales are anticipated to materialize in late June. In contrast to these severe impacts,
overall scheduled enplanement levels at Sea-Tac during 2009 are expected to drop to a much
lesser degree  less than five percent per the forecast in 2008 for the airport"s 2009 budget
preparations. 
Airport Industry Experience 
Airports across the U.S. have been addressing airline carrier impacts to concessionaires for most
of 2008. Port staff has been able to study the actions taken by other airports in similar situations. 
The relief offered in the instances available for study has been 1) reduction of MAG payments
commensurate with percentage enplanement drop, 2) suspension of MAG payments and/or 3)
temporary reduction in percentage rent. Relief has been offered for a specific period of time,
most commonly ending after 12 months (or earlier if enplanement levels return). Airports also
have purchased units that were no longer viable.