Atlanta, airlines reach deal on airport rent

* Delta, Airtran to pay $30 million supplementary rent

* Deal to help fund bond issue for new terminal building

ATLANTA, Aug 31 (BestGrowthStock) – Airlines will pay increased
rent at Atlanta’s Hartsfield-Jackson Airport under a deal with
the city that will help fund a new international terminal,
Mayor Kasim Reed announced on Tuesday.

Under the deal, Delta Air Lines Inc (DAL.N: ), the current
industry leader, AirTran Airways (AAI.N: ) and other carriers
will pay a supplementary fee of $30 million spread over four
years from fiscal 2013 to fiscal 2016.

That money will help fund an international terminal due to
be completed in early 2012 and enable the airport to retain
adequate financial reserves to maintain its credit rating, Reed
said.

“The deal … will be another key element of our effort to
ensure Atlanta’s airport remains the world’s busiest passenger
airport,” Reed said of the deal, which revised a deal reached
in 2009.

The airport is a major source of economic dynamism in
Atlanta, one of the fastest-growing cities in the United
States. The city will start a roadshow ahead of a bond issue
later this year to raise money for the terminal.

The airport would make contractual payments to the airlines
contingent on the strength of the recovery and the airport’s
financial indicators in fiscal 2015-2017.

Those payments would range from zero to $30 million,
contingent on the airport achieving debt service coverage of
more than 1.5 for fiscal 2015-2017, Reed said. The ratio is a
measure of the airport’s ability to cover its monthly
commitments.

The terminal will serve passengers arriving from outside
the United States and open an eastern access to the airport.

It will also obviate the need for arriving international
passengers to recheck their bags once they have passed through
immigration and customs and before leaving the airport, a
system unpopular with passengers.
(Reporting by Matthew Bigg, editing by Todd Eastham)

Atlanta, airlines reach deal on airport rent