To: Board of Supervisors
From: Aviation
Agenda Section: Consent
Vote Requirement: 4/5th
SUBJECT:
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Approval of Two-Year New Air Carrier Service Incentive Program (Fee Waiver) and Breeze Airways Agreement (4/5 Vote Required)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve a two-year new air carrier service incentive program to waive fees for Breeze Airways from March 12, 2026, to March 12, 2028(4/5 Vote Required); and
2. Authorize the Director of Aviation, or designee thereof, to negotiate and execute an operating agreement with Breeze Airways, after review by County Counsel, Risk Management, and County Administrative Office; and
3. Authorize the Director of Aviation, or designee thereof, to execute future amendments with Breeze Airways, after review by County Counsel, Risk Management, and County Administrative Office.
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STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
Air service incentive programs are widely used by airports nationwide as strategic tools to attract new carriers and expand flight options for the traveling public. These programs help offset the high upfront costs of launching service in new or underserved markets and are especially critical for rural or regional airports competing for limited airline resources. By reducing startup risk, incentive programs support the launch of new routes that can drive long-term economic development and community benefits such as improved connectivity and passenger access.
Breeze Airways is scheduled to begin commercial air service at California Redwood Coast-Humboldt County Airport (ACV) on March 12, 2026. Breeze will be offering nonstop service to Burbank-Hollywood (BUR) and connecting service to Provo-Salt Lake City (PVU). In support of this new service, the Department of Aviation recommends a two-year new air carrier service incentive program to waive fees typically charged to air carriers operating at ACV, including:
Terminal Space Rent: $1.09-$1.75 per square foot
Landing Fees: $2.50 per 1,000 pounds Max Gross Landing Weight (MGLW)
Fuel Flowage Fee (into storage): $0.20 per gallon
Fuel Flowage Fee (into aircraft): $0.20 per gallon
The proposed incentive program to waive fees would apply to Breeze Airways from March 12, 2026 through March 12, 2028. This incentive period aligns with FAA guidance, which recommends that air service incentives be time-limited, generally not exceeding two years, to promote sustainable, market-based route development.
Staff will work with Breeze Airways to draft and execute an Operating Agreement prior to the March 12, 2026, launch date.
SOURCE OF FUNDING:
Aviation Enterprise Fund (3530)
FINANCIAL IMPACT:
Narrative Explanation of Financial Impact:
There is no negative financial impact for waiving fees for services. If successful, the introduction of new air service would generate increased revenue to the Airport Enterprise Fund through parking, rental car, and concession activity at ACV, along with broader economic benefits to the local community associated with the expanded airline service.
STAFFING IMPACT:
Narrative Explanation of Staffing Impact:
There is no additional staffing impact anticipated. The existing Airport Operations team, which also provides Aircraft Rescue and Firefighting (ARFF) services, is already required to be on duty to support United Airlines commercial service. The addition of Breeze Airways service can be accommodated with the current staffing allocation. Minor adjustments to staff schedules may be necessary to align with final flight times.
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board may choose not to authorize the proposed two-year incentive program or the execution of an operating agreement with Breeze Airways. However, this is not recommended, as it could jeopardize the launch of new commercial air service at ACV. Incentive programs are a critical component in attracting and sustaining airline interest, particularly in rural markets where the financial risk to carriers is greater. Declining to offer a fee waiver may signal a lack of regional support and make ACV a less competitive option compared to other small airports offering similar or more robust incentives. This could result in the loss of a valuable opportunity to increase air service options, improve regional connectivity, and realize potential long-term economic benefits for Humboldt County.
ATTACHMENTS:
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PREVIOUS ACTION/REFERRAL:
Meeting of: N/A
File No.: N/A