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Sat, Jun 01, 2013

PANYNJ To Take Control Of Atlantic City Airport

South Jersey Transportation Authority To Pay $500,000 Per Year

The South Jersey Transportation Authority (SJTA) voted unanimously Wednesday afternoon to transfer operations, marketing, and services development at Atlantic City Airport (KACY) to the Port Authority of New York and New Jersey (PANYNJ), and pay $500,000 per year for PANYNJ to take over those functions.

The agreement gives the larger body the right to attempt to purchase overall control of the airport from SJTA at any time.

The Press of Atlantic City reports that it is unlikely that such a sale will take place in the near term. SJTA executive director Sam Donelson said that it is more likely that the agreement will result in a collaborative partnership. Donelson said that no SJTA employees will lose their jobs as a result of the agreement.

The $500,000 is reportedly a fairly small deal for the PANYNJ, but represents a significant investment on the part of SJTA.

Spirit Airlines is the only scheduled carrier operating at Atlantic City airport, and in the first four months of this year, about 28 percent fewer passengers have used the airport when compared to the previous several years. A Spirit Airlines spokeswoman attributed that dropoff to reduced demand following hurricane Sandy.

The agreement will reportedly be renegotiated every five years, but the PANYNJ will never receive less than $500,000 per year. There is also a provision to adjust the compensation between scheduled negotiations should revenue exceed operating costs.

FMI: www.sjta.com, www.panynj.gov

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