HomeMy WebLinkAboutSkyWest 2022 1st MRG 20220329 TRANSPORTATION SERVICES AGREEMENT
City of Twin Falls/Twin Falls County and SkyWest Airlines
This Agreement is made and entered into thisjq!-�lay of 2022,
by and between SkyWest Airlines,Inc. ("SkyWest")whose affiliated companies are doing
business as Delta Connection, and the City of Twin Falls, Idaho ("City") and Twin Falls
County,Idaho ("County"). The City and County collectively as("Sponsors").
WiTNESSETH:
WHEREAS SkyWest will provide nonstop jet service between Magic Valley
Regional Airport(TWF) and Salt Lake City(SLC); and
WHEREAS, SkyWest has agreed to provide such service subject to the tern-is and
conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the premises and of the mutual
obligations and undertakings hereinafter set forth,the parties agree as follows:
1. SkyWest will schedule one daily Delta Connection-branded round-trip flight on a CRJ-
200 between TWF and SLC beginning on January 1st, 2022.
2. SkyWest will provide Sponsors monthly statements with a summary of revenue, fuel,
and non-fuel related costs, load factors, number of revenue passengers, flight
completion information, on-time performance, and any other relevant data concerning
flight operations for the Service.
3. At the end of each three-month period during the term of this Agreement,SkyWest will
determine, in accordance with standard accounting practices, the following data:
average segment fares for the flights in the TWF-SLC market, the number of revenue
passengers,the number of operations,and the total block hours operated.
4. For the purpose of determining operating profits/losses attributable to the service,
passenger revenue will be calculated as the product of total revenue passengers and
average segment fares in the market.
5. Total costs are the sum of non-fuel costs and fuel costs. Nonfuel costs are $3,530 per
block hour.Fuel costs will be the actual fuel costs,including related fueling costs,taxes
and fees associated with operating the scheduled service, and any and all discounts,
subsidies, markdown, rebate, or other reduction on cost (if any)that may be provided
to SkyWest Airlines. If passenger revenue is greater than costs no subsidy is owed for
the quarter.In the case that costs are greater than passenger revenue,the difference will
be paid to SkyWest as its subsidy for the quarter. Sponsors may issue rent/fee credits
to offset any subsidy amount due.
6. SkyWest agrees to maintain one daily nonstop roundtrip jet flight each day between
TWF and SLC for the duration of this agreement and will prioritize a ramp overnight
schedule as resources allow. Some exceptions may be possible on limited days subject
to Delta Air Lines targeted schedule reductions in SLC. All frequencies are to be
scheduled on a nonstop basis and with jet aircraft providing a capacity of 50 seats or
greater.Operational issues resulting in cancellations will not be billed to the Sponsors.
7. Segment profits/losses to recompense SkyWest for the agreed upon service levels will
be computed upon the conclusion of each of quarter and Sponsors will reimburse
SkyWest within thirty days of receipt of any statement of shortfall. Sponsors will
reimburse SkyWest for the above up to a maximum of$400,000 during the term of this
Agreement.
8. The term of this Agreement shall commence on January 1st, 2022 and terminate on
December 31It,2022 or until all subsidy funds have been exhausted,.whichever comes
first (such first to occur, the "Expiration Date"). SkyWest will operate these flights
under a codeshare agreement with Delta Air Lines. Notwithstanding anything in this
agreement to the contrary, SkyWest or Sponsor may cancel this agreement upon 60
days written'notice. The parties have no expectations and have received no guarantees
that this Agreement will not be terminated by either party prior to the Expiration Date.
The parties have bargained for the flexibility of terminating this Agreement upon tender
of the requisite notice at any time during the term of the Agreement. All work and
services under the Agreement shall be suspended upon termination of Agreement
becoming effective.
9. This Agreement shall be governed by the laws of the State of Idaho. Exclusive venue
for any claims, suits or any other action arising from or connected in any way to this
Agreement or the performance of this Agreement shall be in Idaho.
10.Neither party will be responsible to the other party for its failure to perform its
responsibilities hereunder in the event and to the extent that such performance is
delayed or prevented for a period of at least fifteen consecutive business days,by any
cause beyond its control and not caused by the party claiming relief hereunder,
including, without limitation, acts of God, public enemies, war, insurrection, acts or
orders of governmental authorities, fire, flood, explosion, riots or the recovery from
such cause("Force Majeure"). Either party may terminate this Agreement immediately
if the other Party is unable to perform its obligations hereunder due to any such event,
which continues for a period of thirty(30)consecutive days or more.
11. All notices, demands, requests, consents, and approvals by either party to this
agreement shall be made in writing and sent by U.S. mail, or by recognized overnight
courier, or by hand delivery, or by facsimile transmission (if confirmed by email,
overnight courier or hand deliver). All such notices shall be addressed as follows:
I
To: Magic Valley Reg. Airport To: SkyWest Airlines
PO Box 1907 444 South River Road
Twin Falls,ID 83303 St. George,UT 84790
Attn: Bill Carberry Attn: Wade Steel
IN WITNESS WHEREOF, the parties hereto affix their duly authorized signatures as of
the date set forth on the first page of this Agreement.
City of Twin Falls Twin Falls County
By: By:
rth Pierce,Mayor Jac o�nsot'C�an
SKYWEST AIRLINES, INC.
�)0%4Ey: C��—
Wade Steel-Chief Commercial Officer