Airport Authority board passes FY 2020 budget
Wednesday, May 22, 2019
MEMPHIS, Tenn. (May 22, 2019) – The Memphis-Shelby County Airport Authority (MSCAA) Board of Commissioners recently voted to approve the MSCAA budget for fiscal year 2020 (July 1, 2019 through June 30, 2020).
This $125 million Operations and Maintenance (O&M) budget sets the fees and charges that the airlines pay to the Airport Authority and establishes spending authority for MSCAA operations. This budget does not include construction project expenditures. The MSCAA budget was unanimously supported by the Memphis International Airport’s airline committee partners and approved by the Board’s Finance and Administration Committee. MSCAA is self-funded and receives no local tax revenue from the City of Memphis or Shelby County.
This budget includes a 1.5 percent increase in terminal rates and charges, with a $70.86 average per square foot rate compared to $69.81 per square foot in FY 2019. Terminal rental fees are determined by dividing the terminal’s operating cost by the total rented space, and the fees are paid by the airlines, vendors and other tenants.
Landing fees increased to a rate of $1.2492 per 1,000 lbs. of landed weight compared to last year’s rate of $1.2397.
Terminal rent and landing fees comprise about four percent of airlines’ overall operating costs and do not have a significant effect on airfares.
Highlights of the FY 2020 MSCAA budget:
- Total revenues/other sources: $125,029,800
- Total expenses, capital outlay, debt service, and debt service coverage: $125,029,800
- Landing fees: $1.2492/thousand lbs., compared to $1.2397 last year
- Terminal square foot rate: $70.86, compared to $69.81 last year