A new deal for the airport

By Mike Minerva

and Rhett Workman

On June 18, City Council approved a new use and lease agreement at Philadelphia International Airport. As Philadelphia's hometown airline, we at American Airlines want to take a moment to share why we believe it marks a monumental step forward for the region.

In a basic sense, the agreement sets the rules airlines must abide by to use the airport. In this case, the city owns the airport and requires the Division of Aviation, our partners who keep the airport running, and the airlines that operate there to renew and sign an agreement periodically.

Although the city owns the airport, it's important to point out that no tax dollars are used to support it. Instead, it relies on the users - airlines, rental-car companies, hotels, and concessionaires - to pick up the costs of operating, maintaining, and improving it. As an employer of nearly 8,000 in this region and a provider of a service that truly drives the regional economy, we were committed to ensuring that the new agreement created a future of shared prosperity for everyone with a stake. And we are proud to have gotten there in the end.

The agreement, signed by Mayor Nutter and American Airlines Tuesday, goes into effect Wednesday. It will last for five to seven years and, with an estimated total value between $2.75 billion and $4 billion, its impact is truly profound. Among the highlights are commitments from the airlines to new capital projects that range from $358 million to $908 million over the first two years of the agreement.

Since becoming the new American Airlines, we've already made substantial investments at the Philadelphia airport. These include $5 million in a state-of-the-art cold-storage facility that officially opened on June 23; $160 million in upgrades to Terminal F, which includes a massive new food and retail hub that opened in 2014; and a new baggage claim facility, security checkpoint, and connector to Concourse E, which will all come on line next year.

In addition to providing a better experience for travelers, these projects represent an example of partnerships generating shared success. Our airline is proud to make these investments because we know that a stronger, more attractive Philadelphia airport means a healthier, more vibrant regional economy, which benefits everyone who lives and works here.

Also included in the lease is a new minimum wage of $12 per hour for all workers at the airport. To be clear, we supported this wage increase and had planned to implement it Wednesday even if a new agreement had not been reached before the old one expired.

In addition to the wage increase, our airline also agreed to send a strong message to our contractors that we will remain neutral on union organizing efforts of other workers at the airport. As an employer with a significant portion of our workforce currently represented by unions, we have a great deal of respect for labor and workers' right to organize. We're happy to do everything within our power to compel anyone we do business with to respect the law and the labor organizing process as prescribed by the U.S Department of Labor.

So with the new agreement now in effect, we would like to extend a sincere thank-you to everyone who was involved with the process - City Council, the Nutter administration, and our partners at the Division of Aviation, as well as support staff on all sides - for their dedication and professionalism throughout.

Last year, American Airlines rolled out a new slogan, "Going for great." While it may sound like a catchy marketing phrase, which we agree it is, to all of us at the Philadelphia hub - now our largest in the Northeast Corridor - it is a motto we have truly embraced. We know that our success in becoming the world's greatest airline relies on this region being the greatest it can be.

With our role at the airport and entire region now secure for several years to come, we feel confident in saying there is reason to believe that the future has never been brighter.

Rhett Workman is the managing director of government and airport affairs for American Airlines' Philadelphia hub.

rhett.workman@aa.com