City-airline partnership should continue

Nearly three decades ago, the city of Atlanta and Delta Air Lines forged a partnership that created the world’s busiest airport —- an economic engine that today supports tens of thousands of jobs and pumps $23.5 billion annually into the region’s economy.

The foundation of that partnership was a 30-year lease that enabled Delta to build the world’s largest hub at Hartsfield-Jackson International Airport. Thanks to the millions of passengers who connect at the airport, Atlanta travelers enjoy convenient nonstop service to cities worldwide, far more destinations and choices than would be justified by local traffic alone.

Delta’s hub is also a magnet for businesses, such as NCR Corp., a Fortune 500 firm which cited Hartsfield-Jackson’s service in its recent move here from Dayton, Ohio, bringing 2,100 new jobs to Georgia.

The Atlanta City Council now must decide whether to continue this successful partnership. Delta and the city administration have agreed on a seven-year extension of the lease, which expires next year. The council must approve the extension before it becomes effective.

The extension, which is similar to airport leases nationwide, keeps costs affordable for Delta and other carriers, including AirTran Airways. That keeps Atlanta’s hubs strong and prevents higher costs from being passed to consumers. It also guarantees funding and completing the new $1.35 billion Maynard H. Jackson International Terminal, the largest public works project in Georgia.

The agreement provides other significant benefits for the city, including more flexibility with gates, approval for $221 million in shovel-ready projects and up to $6 million annually for improvements. It ensures that Delta —- Georgia’s largest private employer —- keeps its corporate headquarters in Atlanta. And it will benefit consumers by making Hartsfield-Jackson even more accessible to competitors.

The airport is already one of the most competitive airports in the nation under the original lease, with AirTran’s hub competing alongside Delta’s global operation. Indeed, the FAA approved the competition plan associated with the original lease, and the extension increases —- not decreases —- competition. For example, the airport will have more flexibility to accommodate carriers wishing to enter the market and existing airlines that want to add flights. If Delta’s traffic drops significantly, the city could reallocate its gates for other airlines.

The extension also renews a provision requiring the airlines and the city to cooperate on new capital projects paid for by the carriers, ensuring they make sense for the airport, the airlines and the community. That provides a vital safeguard for consumers, who fund such projects through fees and airline fares.

The seven-year term of the lease allows Delta to plan for its costs and remain committed to keeping its Atlanta hub strong. Yet it’s short enough to let both parties revise the agreement for future economic conditions.

If Atlanta wants to continue to compete with major hub cities like Dallas, Minneapolis-St. Paul and Chicago, it should choose to continue its successful partnership with its hometown airline, which dates to Delta’s relocation here in 1941. The city, the airlines and everyone who works and lives in metro Atlanta will benefit.

Shirley Franklin is mayor of Atlanta. Richard Anderson is the CEO of Delta Air Lines.