SHERIDAN — Sheridan County commissioners approved a six-year lease agreement with Key Lime Air and the company’s subsidiary Denver Air Connection during their meeting Tuesday.
The lease would begin on Nov. 1 and go through Nov. 1, 2021.
As part of the agreement, the county has waived rental fees for the first two years, which is approximately $120,000 that Key Lime will not pay.
In November 2017, those fees will be reintroduced.
The airline will pay the county $1 for each passenger that boards a flight.
As part of the agreement to get Key Lime to provide air service in Sheridan, the airline will also not pay a deposit.
Once the first two years of the contract are up, airline officials will have to start paying monthly fees for terminal space, fueling and landing costs.
Terminal space will cost $30,021 per year and will be paid monthly.
Key Lime will also be charged $.85 per 1,000 pounds of certified maximum gross landing weight per each and every landing.
For each gallon of aviation fuel dispensed in Sheridan the airline will have to pay a fuel flowage fee of $.045.
The contract also outlined that Sheridan will continue to offer free parking to passengers.
During the meeting, commissioners also approved an agreement with Forecast Inc., a company that maintains the flight attendance records for planes.
The goal is to measure the number of people using flights into and out of Sheridan, and based on those numbers figure out the best way of pricing tickets to Denver International Airport.
That contract is retroactively effective as of Aug. 1, and continues until Oct. 31, 2016.
Unlike most airports, Sheridan will be able to influence the price of tickets on aircrafts coming and going.
“Normally the airline does all the pricing, sets all the fares, all the pricing,” Sheridan County Airport manager John Stopka said. “Part of our agreement with Denver Air Connection was for us to do that. They weren’t really set up to do it, they just had never done it that way in the past.”
Bruce Garber, chairman of the Critical Air Service Team, said in a previous meeting the preliminary rate will be set at $199 for a roundtrip flight to Denver International Airport.
“We’ll be able to go back and adjust those air fares,” Stopka said.
This is being done so that days with fewer people flying will have cheaper ticket prices so that people have an incentive to fly.
Key Lime is aiming to begin flights out of Sheridan on Nov. 1.
Original article can be found here: http://thesheridanpress.com
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