Airport Authority to Present FY 2015 Budget to Board Thursday
May 14, 2014
MEMPHIS, TN (May 14, 2014) – The Memphis-Shelby County Airport Authority (MSCAA) will present its budget for the fiscal year 2015 (July 1, 2014 through June 30, 2015) to its Board of Commissioners at the board’s monthly meeting on Thursday, May 15.
This $124.4 million Operations and Maintenance (O&M) budget sets the fees and charges that the airlines pay to the Airport Authority, and also establishes spending authority for the MSCAA staff. This budget does not include capital (construction) project expenditures.
“This budget is another step toward reinventing the Memphis International Airport, as we transition from being a Delta hub to an origin and destination airport,” said Scott Brockman, President and CEO of MSCAA. “I am extremely proud of our team’s efforts to meet the challenges of this process, reduce overall costs and mitigate increases for our airline partners.”
The most significant changes in the budget are the decrease in landing fees and the increase in rented terminal space. Landing fees are reduced by 11 percent while the terminal rates increased by nearly 68 percent. Terminal rental fees are determined by dividing the terminal’s operating cost by the total rented space. The increases in terminal rates are due to Delta’s reduction of rented space. Had rented spaced remained the same, the terminal rent would have decreased by 13 percent. The terminal rent and landing fees make up only about four percent of airlines’ overall costs and do not have a significant effect on airfare.
The MSCAA budget was unanimously supported by the Memphis International Airport’s airline committee partners and approved by the Board’s Finance Committee.
Highlights of the FY 2015 MSCAA budget: