Subject:
Title
Airline Operating and Use Agreement with Allegiant Air, LLC for the operation of scheduled commercial air service at the St. Pete-Clearwater International Airport.
label
Recommended Action:
Recommended Action
Approval of the Airline Operating and Use Agreement (Agreement) with Allegiant Air, LLC (Allegiant) for operation of scheduled air service at the St. Pete-Clearwater International Airport (PIE).
• The new five-year Agreement for Fiscal Years (FY) 2027 through 2031 will provide PIE revenues of approximately $22.8M representing a 61% increase over the prior Agreement for FY20-25 (FY25-26 was a second amendment extension) valued at approximately $14.2M.
• PIE has an estimated $3.4B annual regional economic impact as a result of this increased passenger growth (by Florida Aviation Economic Impact Study - 2022).
• In 2025, Allegiant transported 2.8M passengers to/from PIE. In 2026 so far, Allegiant has transported 1.4M passengers and now services 65 non-stop destinations.
• This Agreement is not budgeted for in the FY26 Adopted or FY27 Proposed Budget of PIE in the Airport Revenue and Operating Fund. Upon approval of this item, OMB will recommend a change to the FY27 Proposed Budget and user fees to include the figures in the Agreement. This agreement adds approximately $1.042M of new revenue and reserve expenditures to the FY27 Proposed Budget for PIE. Following approval of this agreement, Airline revenue will have a FY27 Budget of $4.211M and Reserves for Future Years will have a FY27 Budget of $86.874M for future CIP. Based on projections and key assumptions in the Airport Revenue and Operating Fund Forecast, the revenue proposed in this agreement maintains fund solvency and ensures planned CIP projects are funded through at least FY31. Subject to future fiscal year budgets, the County maintains the authority to terminate this agreement.
Authorize the Chairman to sign and the Clerk of the Circuit Court to attest.
Body
Strategic Priorities:
Prosperity and Opportunity
3.2 Provide and promote tourism opportunities.
3.3 Increase workforce opportunities.
3.5 Foster business growth.
Smart Service Delivery
4.2 Achieve and maintain a high level of customer satisfaction.
Summary:
Summary
The current Allegiant Operating Agreement second amendment expires on September 30, 2026. This new five-year agreement will expire September 30, 2031. This new agreement introduces a better, simplified revenue structure, defines a new Airline Service Incentive Program, and rewards operational growth through tiered cost savings.
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Background Information:
Allegiant began operations at PIE in November 2006 with two (2) based aircraft serving 12 non-stop routes, serving 668,000 passengers in their first year of service. In 2025, Allegiant transported 2.8M passengers to/from PIE. Allegiant now provides air service to 65 non-stop destinations, more non-stop destinations than any other airline serving the Tampa Bay area. PIE is Allegiant’s third largest base airport across their network of 128 airports.
Allegiant’s number of locally based employees has grown from 46 to approximately 500, including station employees, pilots, mechanics, and flight attendants. Allegiant plans to continue steady incremental growth at PIE for the foreseeable future with the acquisition of Sun Country.
Fiscal Impact:
The five-year Agreement (FY27-FY31) will provide revenues of approximately $22.8M, which is a 61% increase over the prior five-year Agreement for FY20-25 (FY 25-26 was a Second Amendment Extension) valued at approximately $14.2M.
The Agreement provides for charges In FY27 as follows:
(1) Exclusive Office Space: $24.26 per square foot for the term of the agreement.
Revenue generated per FY includes a 40% increase in year one (FY27) and a 3% escalation per year thereafter (FY28-FY31).
(2) Landing fee per thousand pounds: $1.43
(3) Per-turn fee: $250.57 (0-3,000 departures) *
*The agreement rewards operational growth through tiered cost savings on landing per-turn fees. An incentive for a 4% reduction is offered for 3,001 - 6,000 departures and an incentive of a 7% reduction is offered for 6,000+ departures.
This Agreement is not budgeted for in the FY26 Adopted or FY27 Proposed Budget of PIE in the Airport Revenue and Operating Fund. Upon approval of this item, OMB will recommend a change to the FY27 Proposed Budget and user fees before to include the figures in the Agreement. This agreement adds approximately $1.042M of new revenue and reserve expenditures to the FY27 Proposed Budget for PIE. Following approval of this agreement, Airline revenue will have a FY27 Budget of $4.211M and Reserves for Future Years will have a FY27 Budget of $86.874M for future CIP. Based on projections and key assumptions in the Airport Revenue and Operating Fund Forecast, the revenue proposed in this agreement maintains fund solvency and ensures planned CIP projects are funded through at least FY31. Subject to future fiscal year budgets, the County maintains the authority to terminate this agreement.
Staff Member Responsible:
Mark E. Sprague, C.M., Director, St. Pete-Clearwater International Airport
Partners:
Allegiant Air
Attachments:
Airline Operating and Use Agreement
Airline Operating and Use Agreement Second Amendment