​Joint Concessions Coalition Position Paper

URGE CONGRESS TO INCLUDE AIRPORT CONCESSIONAIRE SUPPORT IN COVID-19 “PHASE IV” LEGISLATION

The airport concessionaires that make up the memberships of our associations – companies large and small, many of which are Airport Concession Disadvantaged Business Enterprises (ACDBEs) -- have been hit hard by the dramatic reduction in air travel caused by the COVID-19 pandemic over the past six months. Year-over-year, many of our member companies have seen revenues drop between 50 and 95%. These businesses are dependent on air travelers and many may not survive, or will not recover, until air passenger volumes return to pre-pandemic levels. Air passengers, on which concessionaires and airports depend, are not projected to return to pre-pandemic levels for at least 18-36 months, and possibly as long as five years.

​Congress has already enacted federal assistance for airlines, airline contractors and airports, and is considering additional assistance for airports. Our associations, our thousands of members, and our hundreds of thousands of employees urge Congress to include specific financial assistance for concessionaires – in addition to further airport assistance – in a “Phase IV” pandemic relief and recovery law.

Specifically, in addition to at least $10 billion in additional assistance for airports proposed in the “Health, Economic Assistance, Liability protection and Schools” (HEALS) Act, we collectively ask Congress to provide a minimum of $3.5 billion in federal assistance to airports to be used exclusively to provide waivers from “minimum annual guarantees” (MAGs), rent (including contingent rent) and related fees for airport concessionaires under existing concession contracts with the nation’s airports. This concessionaire assistance would be credited to a concessionaire’s airport account in lieu of MAG or rent payments by the concessionaire.

As a result, this concessionaire assistance has the twin benefit of offsetting the loss of revenue from concessions for airports and helping concessions companies survive by relieving them of MAG/rent that they are unable to pay due to COVID-19 and the severe loss of air travelers. Funding for airports and concessionaires is critical to the recovery of our aviation system. It is important to note that when airports first reported revenue losses and initially sought assistance from Congress, they included lost revenue from all concessionaires. To date, Congress has not directly assisted airport concessionaires, only airports and airlines (and contractors), as listed above.

Such concession relief funding should accompany the supplemental airport assistance under a Phase IV bill and be credited by each airport recipient to the concessionaires operating at the airport based on their contribution to the airport’s total revenue from concession MAG/rents. It is important that this concessionaire assistance supplements the airport funding provided in a Phase IV bill, as it is dedicated to concessions relief.

We collectively request Congress provide the financial assistance for both airports and airport concessionaires in the Phase IV relief legislation. If you have questions about this assistance from the nation’s airport concessionaires, please the following individuals at each association:

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​Signed by:

Rob Wigington – Airport Restaurant and Retail Association – [email protected] – 615-906-6632

Bill Kirk – Airport Minority Advisory Council – [email protected] – 202-661-3814

Greg Scott – American Car Rental Association – [email protected] – 202-297-5123

Michael Payne – International Association of Airport Duty Free Shops – [email protected] -- 202-367-1184

Christine Banning – National Parking Association – [email protected] – 202-309-6369