Missouri Governor Jay Nixon (left) speaks at this morning's news conference. Robert Spence, Chairman of the Airport Board, looks on.
One year ago today the Airport opened its new passenger terminal and closed the old terminal at the west end of Kearney Street. This morning, at a joint news conference, we were pleased to welcome the newest entity to lease space in the old terminal: the Missouri Army and Air National Guard.
The guard will occupy 25,000 square feet in the south end of terminal. As previously announced, the online travel company Expedia will occupy 59,000 square feet in the north end. For all practical purposes, the old terminal is now fully occupied.
The guard lease will initially run through September of 2010. The guard will then have the option of renewing the lease annually through 2015. The total annual lease amount: $158,500.00.
The Expedia lease is initially for five years, with the option of five, 3-year extensions. The total annual lease amount: $450,760.00. Since federal aviation money largely paid for the old terminal, the Federal Aviation Administration had to approve both lease agreements.
The combined airport income from these two leases: $609,260.00.
These leases are very important to the Airport because they generate a revenue stream that is not related to aviation. This is especially important in today’s uncertain economy because the aviation industry is extremely volatile. Non-aviation related revenue helps make up the difference when airline revenue is down. In the big scheme of things, non-aviation related revenue can make it easier for the Airport to keep operating costs down for the airlines.