Business

Atlanta City Council approves leases with AirTran, other airlines

July 19, 2010

The Atlanta City Council on Monday passed resolutions approving new leases with AirTran Airways and with four other airlines.

The seven-year lease extensions are based on a lease approved last year with Atlanta-based Delta Air Lines, which maintains relatively low landing fees.

AirTran, which is based in Orlando and has its largest hub in Atlanta, will maintain use of 32 gates at Hartsfield-Jackson. Under the new lease, that includes 22 preferential use gates on Concourse C and 10 common-use gates on Concourse D with priority scheduling, as the city shifts away from granting airlines exclusive use of gates.

The lease agreement with United, American, Continental and US Airways – which do not operate hubs in Atlanta – incorporates plans to expand Concourse T. According to their new lease, all four of the airlines will eventually be based on Concourse T. The move will free up gates on Concourse D, allowing the city to attract airlines new to Atlanta, Hartsfield-Jackson’s interim general manager Robert Kennedy told a city council panel last week.

Getting the lease agreements done will better enable the city to secure financing, including bond funding needed for its international terminal under construction, Kennedy said.

The leases are subject to final approval by the mayor.

About the Author

As business team lead, Kelly Yamanouchi edits and writes business stories.

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