UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

Washington, D.C. 

AER LINGUS GROUP Pic., et al., 

v. 

LOS ANGELES WORLD AIRPORTS, eta/. 

Docket No. 

OST-2007-28118 

RESPONDENTS' MOTION FOR DISMISSAL WITH PREJUDICE 

OF THE TBIT AIRLINES' COMPLAINT 

DATED: September 4, 2013 

61244595_1.DOCX -1-

StevenS. Rosenthal 

J.D. Taliaferro 

KAYE SCHOLER LLP 

901 Fifteenth Street, NW 

Washington, DC 20005 

Phone (202) 682-3500 

Fax: (202) 682-3580 

email: srosenthal@kayescholer.com 

jtaliaferro@kayescholer.com 

Michael Feuer 

Los Angeles City Attorney 

Raymond S. Ilgunas 

General Counsel, Los 

Angeles World Airports 

Tamami Yamaguchi 

Deputy City Attorney 

LOS ANGELES CITY ATTORNEY'S OFFICE 

Los Angeles World Airports 

One World Way 

Los Angeles, CA 90045 

Phone: (424) 646-5010 

Counsel for Respondents 
Los Angeles World Airports 1 ("LAW A'') hereby moves the Department of 

Transportation ("DOT") for dismissal with prejudice of the claims of 22 Foreign Air 

Carriers ("TBIT Airlines") who on April 30, 2007 filed a "Joint Complaint In Opposition 

to New Terminal Charges at Los Angeles International Airport," which DOT docketed at 

DOT -OST -2007-281182

• By virtue of signing a new rates agreement with LAW A, 20 of 

the 22 TBIT Airlines have consented to dismissal of their claims in this case. One of the 

remaining TBIT Airlines, Aer Lingus Group, plc, ceased operations at Los Angeles 

International Airport ("LAX") in 2008 and received a cash settlement in August 2009 

that fully and finally resolved its dispute with LAW A over terminal rents. The remaining 

TBIT Airline, Compafiia Mexicana de Aviaci6n, S.A. de C.V., was a party to a "Partial 

Settlement Agreement" with LAW A regarding the new terminal charges at LAX, filed 

for bankruptcy in Mexico and the United States on or about August 3, 2010 and 

suspended operations at LAX on or about August 28, 2010. In other words, all TBIT 

Airlines still operating at LAX have signed a new rates agreement with LAW A. 

Therefore, with the granting of this motion, this proceeding will come to an end. In 

support of its motion, LAW A states the following: 

1 Respondents in this case are LAW A, the Los Angeles Board of Airport 

Commissioners ("BOAC"), and the City Of Los Angeles, California ("City"). As used 

herein, LAW A refers to all Respondents 

2 The 22 TBIT Airlines are Aer Lingus Group plc; Air Pacific; Air Tahiti Nui; All 

Nippon Airways Co., Ltd.; Asiana Airlines, Inc.; British Airways Plc; Cathay Pacific 

Airways Limited; China Airlines, Ltd.; China Eastern Airlines; Compafiia Mexicana de 

Aviaci6n, S.A. de C.V.; Deutsche-Lufthansa AG; El Al Israel Airlines Ltd.; EVA 

Airways Corp.; Japan Airlines International Co., Ltd.; Korean Air Lines Co., Ltd.; LAN 

Airlines S.A.; Lan Peru, S.A.; Philippine Airlines, Inc.; QANTAS Airways Limited; 

Singapore Airlines Limited; Swiss International Air Lines Ltd.; and Thai Airways 

International Public Co., Ltd. 

61244595_l.DOCX -1-
BACKGROUND AND REQUEST FOR RELIEF 

On April 30, 2007, the 22 TBIT Airlines filed a "Joint Complaint In Opposition to 

New Terminal Charges at Los Angeles International Airport." LA WA answered this 

Complaint on May 9, 2007. The parties' thereafter filed several procedural motions and 

requests for disposition which were pending before DOT when, on or about July 24, 

2008, the TBIT Airlines and LAW A entered a "Partial Settlement Agreement," and on 

October 31, 2008, the TBIT Airlines and LAWA filed a "Joint Motion to Stay 

Proceedings." The Joint Motion to Stay requested that DOT "stay proceedings in this 

case until the earlier of (i) the date [the Parties] jointly agree to apply to release the stay, 

and (ii) 45 days after issuance of a final, non-appealable decision in the LAX III 

proceedings." See Docket No. 67 in DOT-OST-2007-28118. 

Beginning in 2008, the TBIT Airlines and LAW A began an extended period of 

discussions regarding airport-wide rates and charges issues, and on September 17, 2012 

BOAC adopted three resolutions related to airport-wide rates and charges issues: 

1. Resolution 24912, which approved a new methodology for establishing rates 

and charges at LAX; 

2. Resolution 24913, which approved Revision No.5 to the LAX Tariff; and 

3. Resolution 24914, which authorized the LAWA Executive Director to enter 

new binding rate agreements with LAX. 

On December 2012, LAW A entered new rate agreement with 20 of the 22 TBIT 

Airlines. See Exhibit A (attached hereto)3

. Importantly, the new rate agreements include 

the following clauses, inter alia 

3 In order to avoid burdening DOT with large numbers of duplicative Rate 

Agreements, LAW A is providing the Rate Agreement with All Nippon Airways Co. Ltd. 

61244595_I.DOCX -2-
2. Acceptance of New Rate Methodology. Airline agrees [] to pay 

charges for its use of space in the Terminals calculated in accordance with 

the New Rate Methodology as modified by this Agreement and 

acknowledges that this Agreement constitutes a written agreement with air 

carriers within the meaning of 49 U.S.C. § 47129(e)(1). 

See Exhibit A at 2. 

12.2 If Airline is a complainant in Aer Lingus Group PLC v. Los Angeles 

World Airports, USDOT Docket No. OST-2007-28118 ("LAX IV"), 

Airline acknowledges and agrees that its complaint in such proceeding 

before the USDOT does not now present a significant dispute within the 

meaning of 49 U.S.C. § 47129(c)(2) and consents to its dismissal with 

prejudice. 

See Exhibits A at 9. 

Because 20 of the 22 TBIT Airlines have entered new written agreements 

governing their rates and charges at LAX, and because those TBIT have consented to the 

dismissal of their claims in LAX IV, and because the remaining two TBIT airlines, Aer 

Lingus Group, plc and Compafiia Mexicana de Aviaci6n, S.A. de C.V., have ceased 

operations at LAX, LAW A therefore respectfully requests that DOT dismiss with 

prejudice the TBIT Airlines' Complaint. 

as an exemplar. LAW A, of course, is willing to provide DOT with all of the Rate 

Agreements signed by the TBIT Airlines. 

61244595_ l.DOCX -3-
Dated: September 4, 2013 

61244595_ l.DOCX 

Respectfully submitted, 

~~!a;e~ /jJ; 

J.D. Taliaferro 

KAYE SCHOLER LLP 

901 Fifteenth Street, NW 

Washington, DC 20005 

Phone (202) 682-3500 

Fax: (202) 682-3580 

email: smsenthal@.kayescholer. com 

j taliaferro@ka yescholer. com 

Michael Feuer 

Los Angeles City Attorney 

Raymond S. Ilgunas 

General Counsel, Los 

Angeles World Airports 

Tamami Yamaguchi 

Deputy City Attorney 

Los Angeles City Attorney's Office 

One World Way 

Los Angeles, CA 90045 

Phone: (424) 646-5010 

Counsel for Respondents 

-4-
CERTIFICATE OF SERVICE 

I, J.D. Taliaferro, hereby certify that on September 4, 2013, I caused to be served 

by email, a true and correct copy of the foregoing RESPONDENTS' MOTION FOR 

DISMISSAL WITH PREJUDICE OF THE TBIT AIRLINES' ,COMPLAINT on the 

following: 

Brian K. McCalmon 

KLGATES 

160 1 K Street, NW 

Washington, DC 20006-1600 

Phone: 1.202.661.6230 

brian.mccalmon@klgates.com 

Counselfor: TBIT Airlines 

Paul C. Jasinski 

General Counsel Americas 

James B. Blaney 

Senior Counsel Americas 

BRITISH AIRWAYS PLC 

72-20 Astoria Blvd 

Jackson Heights, NY 11370 

jim.blaney@ba.com 

Counsel for British Airways 

Arthur J. Molins 

General Counsel, North America 

DEUTSCHE LUFTHANSA AG 

1640 Hempstead Turnpike 

East Meadow, NY 11554 

Arthur .molins@dlh.de 

Counsel for Lufthansa 

61244595 _l.DOCX 

David A. Berg, Esq. 

AIRLINES FOR AMERICA 

1301 Pennsylvania Ave., NW 

Washington, DC 20004 

Phone: (202) 626-4234 

Fax: (202) 626-4139 

dberg@airlines.org 

Robert P. Silverberg, Esq. 

SILVERBERG, GOLDMAN & 

BIKOFF, LLP 

1101 30th Street, NW, Suite 120 

Washington, DC 20007 

Phone: (202) 944-3304 

Fax: (202) 944-3306 

rsilverberg@sgbdc.com 

Counsel for Airlines For America 

Scott P. Lewis, Esq. 

ANDERSON & KREIGER LLP 

One Canal Park 

Suite 200 

Cambridge, MA 02141 

Phone: (617) 621-6560 

Fax: (617) 621-6660 

slewis@andersonkreiger.com 

Monica Hargrove Kemp, Esq. 

AIRPORTS COUNCIL INTERNATIONAL 

-NORTH AMERICA 

1 77 5 K Street, NW 

Washington, DC 20006 

Phone: (202) 293-8500 

Fax: (202) 331-1362 

mkemp@aci-na.org 

Counsel for ACI-NA 

-5-
In addition, I caused a true and correct copy of the foregoing RESPONDENTS' 

MOTION FOR DISMISSAL WITH PREJUDICE OF THE TBIT AIRLINES' 

COMPLAINT to be emailed to Nancy Kessler, Esq., Office of the General Counsel, 

Department of Transportation, at Nancy.Kessler@dot.gov. 

In addition, I caused to be filed electronically one copy of the foregoing 

RESPONDENTS' MOTION FOR DISMISSAL WITH PREJUDICE OF THE TBIT 

AIRLINES' COMPLAINT in Docket Number DOT-OST-2007-28118 in the Federal Docket 

Management System (FDMS) at http://www.Regulations.gov. 

J~ 

61244595_ l.DOCX -6-
Exhibit A
RATE AGREEMENT 

tk This RATE AGREEJVIENT (this ''Agreement") is made and entered into as of 

' em/u U 20{) , by and between THE CITY OF LOS A\..,GELES DEPARTJVIENT 

OF AIRPORTS, a municipal corporation ("City"), acting by order of and through its Board of 

Airport Commissioners (the "Board"), and ?\-Lt tJ;('P.,. A--~\u:h'(? G ·,~"Airline"), Airline and 

City are collectively referred to as "Parties." Capitalized terms used in this Agreement without 

definition shall have the meanings given to such terms in the New Rate Methodology (as defmed 

below). 

RECITALS 

The Parties hereby aclmowledge and agree that their respective decisions to enter into 

this Agreement are premised on the following recitals: 

A. City is the owner of Los Angeles International Airport (the "Airport") and · 

operates the Airport for the promotion, accommodation and development of air commerce and 

air transportation, 

B. City has undertaken construction projects to refurbish and renovate certain 

Tenuinals at the Airport and expects to continue to inake significant investments in all the 

Terminals over the next ten (1 0) years to improve and modernize the Airport and accommodate 

additional passengers. City and Airline desire to communicate regularly on the status of Capital 

Improvements to the Tern1inals. 

C. Airline (i) is or will be using space in a. Terminal at the Airport pursuant to the 

Los Angeles International Airport Passenger Terminal Tariff (the 'Tariff") or (ii) is using space 

in a Terminal at the Airport pursuant to a lease and desires to have the rates and charges for its 

use.ofTerminal space at the Airport calculated in accordance with this Agreement. 

D. The Board adopted a new methodology (the "New Rate Methodolo 

calculation of rates and charges for the use of Terminal space at the Airport ony~llli.r.t'-~.1----' 

2012, which Board-approved niles and charges methodology is attached to this 

Exhibit A. 

E. Airline understands that the New Rate Methodology was developed in 

anticipation of future Terminal construction projects and is intended as a self-financing 

mechanism to recover the costs of constructing, acquiring, operating and maintaining the 

Terminals at the Airport 

F. City and Airline\desire predictable rates and charges for use of Airpmt facilities. 

G. City and Airline desire to avoid continuing disputes about the methods used to 

calculate rates and charges for use of Terminals at the Airport. 

-Page 1 -
_ H. City will make this Agreement available to all Airlines that are operating at the 

Airport, and all Airlines that execute this Agreement will be "Sirnatory Airlines" tmder this 

Agreement. City will also make this Agreement available to airline consortiums that have been 

formed to manage specified Terminal facilities at the Airport and have been approved by City for 

this purpose, but nothing in this Agreement shall be construed to impose an obligation upon City 

to approve any new airline consortiums. 

AGREEMENT 

NOW THEREFORE, in consideration of the foregoing recitals. and for other good and 

valuable consideration, the receipt and sufficiency of which are hereby aclmowledged, City and· 

Airline hereby agree as follows: 

l. Term. With respect to any Airline, this Agreement shall commence on January 1, 2 013 if 

executed by Airline and delivered to City on or before December 15, 2012 and otherwise shall 

·commence on the first day of the next month beginning no less than sixty (60) days after · 

execution by Airline and delivery to City. With respect to any approved airline consortium in 

existence on December 15, 2012 ("Existing Consortium"), this Agreement shall commence on 

January 1, 2013 if (a) executed by the Existing Consortium and delivered to City on or before 

December 15,2012 and also (b) executed by individmil airline members of such Existing 

Consortium responsible for no less than fifty percent (50%) of the enplaned passengers of all . 

such consortium members at the Airport during fiscal year 2012 and delivered to City.on or 

before December 15,2012. With respect to any airline consortium formed and approved after 

December 15, 2012, this Agreement shall commence on the frrst day ofthe next month . 

beginning no less than sixty (60) days after execution and delivery to City by such consortium 

and one hundred percent (1 00%) of the individual airline members of such consortium. This 

Agreement shall terminate on December 31, 2022; provided, however, with respect to any. 

Existing Consortium, if one hundred percent (1 00%) ofits individual airline members have not 

executed and delivered this Agreement to City by December 31,2013, this Agreement shall 

terminate on December 31, 2013. 

2. Acceptance ofNew Rate Methodolollv. Airline agrees that to pay charges for its use of 

space in the Terminals· calculated in accordance with the New Rate Methodology as modified by 

this Agreement and aclmowledges that this Agreement constitutes a written agreement with air 

carriers within the meaning of49 U.S.C. § 47129(e)(1). 

3. No Change to New Rate Methodology. City agrees that during the Term, City shall use 

the New Rate Methodology as modified by this Agreement to calculate Airline's rates and 

charges for the use of Terminal space at the Airport under the Tariff or Airline's lease, as 

applicable, and City shall not subject Airline to a different rates and charges methodology for the 

use of Terminal space at the Airport during the Term; provided, however, that City may modifY 

the New Rate Methodology in a manner generally applicable to all Terminals with the written 

consent of Signatory Airlines that are then operating at the Airport. City shall give written notice 

and meet with the Signatory Airlines to discuss any such proposed modification. In lieu of 

providing written notice to each Signatory Airline, City may provide written notice to the Airline 

Airport Mfairs Committee ("AAAC") at the Airport. City shall provide at least thirty (30) days 

-Page 2-
written notice of the meeting and request the written consent of the Signatory Airlines to the 

proposed modification no less than forty-five (45) days following the meeting. Such consent 

shall be deemed to have been given if the modification is approved in writing by a vote of 

Signatory Airlines that collectively paid no .less than fifty-one percent (51%) of the total rates. 

and charges paid 1.mder the New Rate Methodology by all Signatory Airlines during the 

immediately preceding fiscal year, and the Signatory Airlines voting to approve the modification 

paid no less than sixty-seven percent (67%) of the total rates and charges paid under the New 

Rate Methodology during the immediately preceding fiscal year by all. Signatory Airlines 

participating in the vote. An airline consortium shall not itself participate in such a vote, but the 

rates and charges paid by a consortium that is party to this Agreement shall be credited 

proportionately to any of its members who are Signatory Airlines and participate in such a vote. 

City and Airline aclmowledge that during the Term questions may inevitably arise about 

the application of the New Rate Methodology in new or unforeseen circumstances. They 

commit to work together in good faith to resolve any such questions to the satisfaction of City 

and all Signatory Airlines in ways that are consistent with the intent of this Agreement and inay 

not require any changes to the New Rate Methodology 1.mder this Section 3. 

4. Tier One Revenue Sharing. City will share the concession revenues that City derives 

from the Terminals at the Airport with all Signatory Airlines in accordance with the following 

formulas ("Tier One Revenue Sharing"), which reduce the otherwise-indicated Terminal 

Buildings Requirement and FIS Requirement calculated under the New Rate Methodology. 

Airlines that are not signatories to this Agreement shall not be eligible for Tier One Revenue 

Sharing. 

4.1. Tier One Terminal Buildings Revenue Sharing. 

(a) Commencing with calendar year 2014 (because the Termimil 

Buildings Rate for 2013 is fixed under Section 5 .I of this 

Agreement), the Terminal Buildings Requirement otherwise 

calculated under Section 2.2.1 of the New Rate Methodology for 

any given calendar year shall be reduced by the full amount of Tier 

One Terminal Buildings Concession Revenue applicable to that 

year. The Terminal Buildings Rate (and all rates derived from it. 

under the New Rate Methodology) charged to all Signatory 

Airlines, including Airline, shall reflect the fixed rate prescribed for 

2013 by SectionS.! and, in subsequent years, the reduction in the 

Terminal Buildings Requirement yielded by Tier One Revenue 

Sharing. 

(b) For purposes of this section, the following definitions shall be used: 

(i) "Tel1'IJinal Buildings C0Qcession Revenue" shall mean all revenue 

received by City from Terminal Buildings Concessions in the 

immediately preceding Fiscal Year. 

-Page 3-
(ii) "Tier One Terminal Buildings Concession Revenue" shall mean 

fifty percent (50%) of the amount, if any, of Terminal Buildings 

Concession Revenue received by City in the inunediately 

preceding Fiscal Year that is above the Terminal Buildings 

Concession Baseline. 

(iii) "Terminal Buildings Concessions" means all concessions and 

concessions management in the Terminal Buildings at the Airport 

(other than Terminal4, unless and until all Airlines using Terminal 

4 become subject to the New Rate Methodology) including, but not 

limited to; food and beverage, retail, telecommunications, A TMs, 

h1ggage carts, advertising and sponsorships, and Terminal 

commercial management and Terminal media operations. Terminal 

Building Concessions do not include FIS Concessions or parking 

and rental car concessions. 

(iv) "Terminal Buildings Concession Baseline" shall mean Sixty-Seven 

Million Dollars ($67,000,000) as of July 1, 2011 and as 

subsequently adjusted as of'July 1, 2013 and as of July 1 of each 

following year to reflect any changes after June 3 0, 2011 in the 

consumer price index published by the Bureau of Labor Statistics 

for "all urban consumers" for "all items" for the Los AngelesRiverside-Orange Cotmty Area. 

4.2. Tier One FIS Concession Revenue Sharing. 

(a) Commencing with calendar year 2016 (because the FIS Rates for 2013, 

2014 and 2015 are fixed under Section 6 of this Agreement), the Gross 

FIS Requirement otherwise calculated under Section 2.3.1 of the New 

Rate Methodology tor any given calendar year shall be reduced by the full 

amount of Tier One FIS Concession Revenue applicable to that year. The 

FIS Rate charged to all Signatory Airlines, including Airline, for calendar 

year 20 1'6 and subsequent years shall reflect the reduction in the Gross FIS 

Requirement yielded by Tier One Concession Revenue Sharing. 

(b) For purposes ofthis section, the following definitions shall be used: 

(i) · "FIS Concessions" means duty free and foreign exchange . 

concessions at the Airport . FIS Concessions do not include 

Terminal Buildings Concessions or parking and rental car 

concessions. 

(ii) "Tier One FIS Concession Revenue" shall mean twenty-five 

percent (25%) of all revenues received by City from FIS 

Concessions contracts in the immediately preceding Fiscal Year. 

-Page 4-
5. : Sigilatory Transitional Phase-In. City w:lll phase in the rates and charges calculated under 

the New Rate Methodology for all Signatory Airlines, including Airline, by implementing the 

following signatory transitional phase"in ("STP") discounts to the Terminal B{lildings Rate and 

all rates derived from it under the New Rate Methodology for each of the calendar years 2013 

through 2017: 

5.1. The Terminal Buildings Rate shall be Seventy-Five Dollars ($75) for calendar 

year 2013 (when Tier One Revenue Sharing will not yet be in effect): 

5.2. The Terminal Buildings Rate calculated pursuant to Section 4 of this Agreement 

to reflect Tier One Revenue Sharing shall be discounted by twenty percent (20%) 

f()r calendar year 2014. 

5.3. The Terminal Buildings Rate calculated pursuant to Section 4 of this Agreement 

to reflect Tier One Revenue Sharing shall be discounted by fifteen percent (15%) 

for calendar year 2015. 

5.4. The Terminal Buildings Rate calculated pursuant to Section 4 of this Agreement 

to reflect Tier One Revenue Sharing shall be discounted by ten percent (1 0%) for 

calendar year 2016. 

5.5. The Terminal Buildings Rate calculated pursuant to Section 4 of this Agreement 

. to reflect Tier One Revenue Sharing shall be discounted by five percent (5%) for 

calendar year 20 17. 

Illustrative calculations displaying how Tier One Revenue Sharing and the STP discounts will 

affect the rates and charges otherwise calculated under the New Rate Methodology are attached 

to this Agreement as Exhibit B through Exhibit H. 

6. FLxed Signatory FIS Rates. For three (3) years City will lower and fix the FIS Rate 

otherwise calculated under Section 2.3 of the New Rate Methodology, and all Signatory Airlines, 

including Airline, shall be charged the following rates for each Deplaned Internati<;mal Passenger 

for the period from January 1, 2013 through December 31, 2015 for the use of the FIS Areas: 

January 1, 2013 -December31, 2013: 

January 1, 2014- December 31, 2014: 

January 1, 2015 -December31, 2015: 

$ 8.50 

$ 9.50 

$10.50 

7. Capped Common Use Holdroom Fee. During any calendar year, City shall ~ot charge 

any Signatory Airline, including Airline, cumulative Common Use Holdroom Fees for the use of 

a given Common Use Holdroom that exceed the Common Use Holdroom Cap. For purposes of 

this Section, "Common Use Holdroom Cap" means, for any given calendar year, the product of 

(x) the Terminal Buildings Rate calculated in accordance with this Agreement for that year and 

(y) the average number of square feet in all Common Use Holdrooms in the Terminals. For 

purposes of determining whether a Signatory Airline's cumulative Common Use Holdroom Fees 

for a given Common Use Holdroom exceed the Common Use Holdroom Cap, City shall include 

-Page 5-
Common Use Holdroom Fees paid by a Signatory Airline for the use of other Common Use 

Holdrooms if such Signatory Airline provides written documentation reasonably acceptable to 

the Executive Director that the use of such other Common UseHoldrooms was required in order 

to acc.ommodate the schedule of another airline on the Coi:nmon Use Holdroom for which the 

· cumulative Common Use Holdrooms Fees are being computed. 

8. Terminal Renewal and hnprovement Fund & Tier Two Revenue Sharing. To provide a 

dedicated funding source for future Terminal capital improvement projects, City shall establish a 

Terminal Renewal and Improvement Fund ("TRJF"). 

8.1. Net Terminal Area Cash Flow. At the end of each calendar year; coinmencing at 

the end of calendar year 2013, the Net Terminal Area Cash Flow shall be deposited to the TRlF; 

provided, however, that the annual deposit of the NetTerminal Area Cash Flow shall not exceed 

the Net Terminal Area Cash Flow Cap. For purposes of this Section, the "Net Terminal Area 

Cash Flow" for any calendar year shall mean the difference between(a) the total revenues 

received by City from all sources for use of space in the Terminals (including Terminal4) and 

(b) the sum of (x) debt service (net ofPFC's) and Operations and Maintenance Expenses 

allocable to the Terminals and (y) required Reserve Deposits allocable to the Terminals 

(including Terminal4) for the immediately preceding Fiscal Year. The "Net Terminal Area 

Cash Flow Cap" shall mean One Hundred Twenty-Five Million Dollars ($125,000,000) as of 

July I, 2013 and as adjusted as of July 1 of each following year to reflect any changes after July 

1, 2013 in the consumer price index published by the Bureau of Labor Statistics for "all urban 

consumers" for "all items" for the Los Angeles-Riverside-Orange County Area. If at the end of 

any calendar year the Net Terminal Cash Flow exceeds the Net Terminal Cash Flow Cap, fifty 

percent (50%) of the funds in excess of the Net Terminal Cash Flow Cap shall be deposited to 

the Tier Two Revenue Sharing Fund; the remaining fifty percent (50%) of any such excess funds 

shall be deposited to City's revenue fund for City's unrestricted use for airport system capital or 

operating costs in accordance with applicable law. 

8.2. Use ofTRJF and Tier Two Revenue Sharing. 

(a) TRJF. 

(i) The funds in TRJF, if any, shall only be used by City to fund 

Capital Improvements in the Terminals unless the Executive Director reasonably 

determines, after consultation with the Signatory Airlines (except when exigent 

citGumstances make such consultation impractical), that funds in TRJF are needed 

for other airport purposes (x) as a result of emergencies, including natural 

disasters or acts of wal', (y) to meet regulatory or security requirements or ( z) to 

satisfy bond covenants. The costs of Terminal projects funded by TRIF shall be 

amortized over the project's useful life and recovered through future rates and 

charges. 

(ii) The TRJF Balance at the end of each fiscal year shall not exceed 

the TRJF Cap. At the end of each fiscal year, fifty percent (50%) of the fimds in 

excess of the TRJF Cap shall be deposited to the Tier Two Revenue Sharing 

-Page 6-
~ Flmd; the remaining fifty percent (50%) of any such excess fimds shall be 

deposited to City's revenue fund for City's unrestricted use for airport system 

capital or operating costs in accordance with applicable law. For purposes ofthis 

Section, the "TRIF Balance" shall mean the TRIF account balance as of July 1 

after depositing the Net Terminal Area Cash Flow pursuant to Section 8.1 of this 

Agreement for the innnediately preceding fiscal year and including any accmed 

interest: The "TRIF Cap" shall mean Five Hlmclred Million Dollars 

($500,000,000), as ofJuly 1, 2013 and as adjusted as of July 1 of each following 

year to reflect any changes after July 1, 2013 in the consumer price index 

published by the Bureau ofLabor Statistics for "all urban consumers" for "all 

items" for the Los Angeles-Riverside-Oninge County Area. 

(b) Tier Two Revenue Sharing Fund Distributions. 

(i) Commencing in calendar year 20 14 and continuing on an annual 

basis until the end ofthe Term, the funds in the Tier Two Revenue Sharing Flmd, 

if any, shall be distributed among all of the. Signatory Airlines in the form of a 

credit (the "Tier Two Credit") at the end of each calendar year. Tier Two Credits 

can only be used by a Signatory Airline, including Airline, as an offset against 

amounts due to City in the following order of priority: first, against any ammmts 

clue to City on account of Airline's use of Terminal space at the Airport; and · 

second, against any landing fees clue to City on account ofAirline's use of the 

airfield at the Airport. Tier Two Credits will not be issued in cash. Tier Two 

Credits must be used within twelve (12) months after they are issued and expire 

immediately if Airline ceases operations at the Airport for any reason other than 

the closure of the Airport. The distribution ofTier Two Credits shall be subject to 

the eligibility n1les. set forth below in subsection (ii) and shall be based upmi the 

ratio of each Signatory Airline's payments of Terminal charges dming the 

preceding calendar year to all payments of Terminal charges by Signatory 

Airlines during the preceding calendar year. The calculation of Tier Two Credits 

· shall be made after the annual adjustment-to-actual of rates pursuant to Section 

2.10 of the New Rate Methodology. 

(ii) Conditions for the Issuance and Use of the Tier Two Credit. To be 

eligible to receive a Tier Two Credit, if any, for any given calendar year Airline 

must be operating at the Airport at the time the Tier Two Credits are issued. 

Airline will only be eligible to use Tier Two Credits as offsets against amount due 

to City, in accordance with Section 8.2(b)(i), if at the time Airline seeks to use . 

such Credits, Airline is not in arrears to City by more than 45 (fortY-five) days for 

any outstanding amount due on account ofAirline's use of Terminal space or use 

of the airfield at the Airport for >vhich City has given Airline notice (and for 

purposes of this Section 8.2(b)(ii), the discharge of a debt in a bankruptcy 

proceeding at any time during the preceding two (2) years shall not constitute the 

elimination of an atTearage or the payment of any amount to City). 

-Page?-
An illustrative calculation displaying how Tier Two Revenue Sharing will work is 

attached to this Agreement as Exhibit I. 

9. Terminal Capital Improvements. 

9 .1. Consultation. The AAAC will designate a representative of all Signatory Carribrs 

(the "Airline Technical Representative") and will meet periodically with City to consult about 

the scope and status of Capital Improvements with costs allocable to the Terminals ("Terminal 

Capital Iinprovements"). City will meet with the Airline Technical Representative and the 

Signatory Airlines at least once each year to review Terminal Capital Improvements. The intent 

of these meetings is for City and Signatory Airlines to develop a common understanding of 

current and future Terminal Capital Improvements based upon reasonably available information. 

At each such meeting, City will provide the following: (a) a list and description of each Terminal 

Capital Improvement that is planned, designed or in constmction .. at the time of the meeting; (b) 

the estimated gross project cost and constmction schedule for each Terminal Capital 

Improvement; and (c) the anticipated source of funds for each Terruinal Capital Improvement; 

and (d) the anticipated impact of each Terminal Capital Improvement on charges to be calculated 

in accordance with the New Rate Methodology and this Agreement, as well as any other 

rnformation provided to the Board about each such Terminal Capital Improvement. City will 

give due consideration to written comments on these subjects provided to City by Signatory 

Airlines or the Airline Technical Representative within tlllrty (3 0) days of any such meeting and 

will advise the. Board of any such comments when requesting Board action on m1y Terminal 

Capital Improvement that is the subject of such comments. 

9.2. Funding Sources. Terminal Capital Improvements may be funded from one or 

more of the sources listed below. City's goal is to achieve a cumulative funding mix consistent 

with the targets set forth below for the Terminal Capital Improvements undertaken by City 

during the Term of this Agreement. 

Sources of Funds Target 

• TRIF • Up to 30%.ofProject costs 

• Airport revenue other than TRIF 

• Federal grants-in-aid • 'Nhere available to pay eligible Project costs 

• Airport revenue bonds • The balance of Project costs 

• PFC's • No less than 35%ofPFC-e!igible Project 

costs, including debt service, subject to 

availability and FAA approval 

Airline aclmowledges that the actual mix of sources used to fund Terminal Capital 

Improvements during the Term of this Agreement may vary depending upon, but not limited to, 

the following factors: (a) the availability of funds in TRIF and airport revenue accounts; 

(b) federal funding levels and Project eligibility; (c) the allowable amounts and uses ofPFC's; 

-Page 8-
and (d) capital market conditions. City will defer for five years from the date of beneficial 

occupancy the collection of any amortization charges associated with the use ofTRIF moneys to 

fund new Tenninal Capital Improvements. 

10. Partial Settlement Agreement. If Airline is a party to the 2008 "Partial Settlement 

Agreement" or the 2010 "First Amendment" to the Partial Settlement Agreement with City 

(collectively, the "PSA") regarding the calculation of rates for use of the Tom Bradley 

International Tenninal ("TBIT"), Airline aclmowledges and agrees that (a) this Agreement is in 

complete satisfaction of Sections 1.5(a) and 1.5(c) of the PSA; (b) the STP discounts described 

in Section 5 of this Agreement satisfy whatever remaining obligation, if any, City might 

otherwise have to provide the credit outlined in Recital G of the Partial Settlement Agreement 

and in Recital D of the First Amendment; and (c) Recital G and Section 1.3 of the Partial 

Settlement Agreement, and Recital D of the First Amendment, are all null and void, with no 

further effect. 

II. Letter Acreement. If Airline is a signatory to a form of Letter Agreement approved by 

the Board on OCtober 20, 2008 (Board Order No. A0-51 08) or May 3, 20 I 0 (Board Order No. 

A0-5159), Airline aclmo\vledges and agrees that the Letter Agreement hterminated effective 

January I, 2013 and that the section of the Letter Agreement with the heading "LAX III 

Decision': (which is either Section 2 or Section 3 of such Airline's Letter Agreement) is null and . . 

void, with no further effect.· 

12. Pending USDOT Complaints. 

12.1. If Airline is a complainant in Alaska Airlines, Inc. v. Los Angeles World Airports, 

· USDOT Docket No. OST-2007-27331 ("LAX III"), Airline aclmowledges and agrees that its 

complaint in such proceeding before the USDOT is moot and consents to its dismissal with 

prejudice. · .. 

12.2. If Airline is a complainant in Aer Lingtts Group PLC v. Los Angeles World 

Airports, USDOT Docket No. OST-2007-28118 ("LAX IV"), Airline ·aclmowledges and agrees 

that its complaint in such proceeding before the USDOT does not now present a significant 

dispute within the meaning of 49 U.S.C. § 47129(c)(2) and consents to its. dismissal with 

prejudice. · 

13. No Challenge to New Rate Methodology. Airline agrees that it will not contest or 

challenge, in any forum, the reasonableness or validity of the New Rate Methodology; provided, 

however, that Airline reserves the right to dispute whether the rates adopted by City for any 

given calendar year were calculated in accordance with the New Rate Methodology and this 

Agreement. Any such dispute shall be resolved in a court of competent jurisdiction in Los 

Angeles County, California unless otherwise agreed by City. 

14. More Favorable Rate Methodology. If during the Tenn of this Agreement City adopts a 

new Tariff or otherwise makes available to other Airlines an alternative rate methodology that is 

more favorable than the New Rate Methodology, Airline may, at its option, elect to have its rates 

and.charges calculated mider such alternative rate methodology rather than in accordance with 

-Page 9-
this ,1;\greement; provided, however, that if Airline makes such an election, Airline shall waive 

whatever rights, if any, it might have to Tier One Revenue Sharing, Tier Two Revenue Sharing 

and the Transitional Phase-In under this Agreement: 

15. No Third Party Rights Or Obligations. No person or entity not a Party to or expressly 

identified as a benefiCiary under this Agreement shall have any third-party beneficiary or other 

rights under this Agreement. 

16. Applicable Law. This Agreement shall be governed by, and construed in accordance 

with, the laws of the State of California. 

17. Venue. Any litigation concerning this Agreement may only be filed in a court of 

competent jurisdiction in Los Angeles County, California. 

18. Binding Agreement. This Agreement shall be binding upon the Parties hereto and their 

respective successors and assigns, corporate parents, ·subsidiaries and affiliates, and 

representatives, including a debtor in possession, a chapter 11 trustee or a chapter 7 trustee in a 

case or cases commenced under!! U.S.C. §§ 101 et seq. 

19. Headings. Descriptive headings are used in this Agreement for convenience only and 

shall not control, limit, amplify or otherwise modify or affect the terms and provisions of this 

Agreement or the meaning or construction of the terms and provisions of this Agre€1llent. 

20. Multiple Counterparts. This Agreement may be executed in a number of identical 

cmmterparts, each of which tor all purposes is deemed an original, and all of which constitute 

collectively one agreement. Facsimile signatures' may be utilized, but original signature pages 

must be provided to the Board. · 

21. Sole Agreement. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL 

AGREEMENT AMONG THE PARTIES 'WITH RESPECT TO THE SUBJECT MATTER 

HEREOF, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, 

CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS. THERE ARE NO 

UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 

-Page 10-
: IN WITNESS WHEREOF, the patiies have executed this Agreement as of the 

day and year first above written. 

Its: '?.-. '\!~ ce.:. Vr-e_s~ ckt"\t 

DATE: I:L4;j 2- , 2012 

I 

Attest: ' , ( 

By: ( ch A£1AJJ ?rv£ e 

Printed Name: 

Its: ~e_(\t_r-o..-\ {Y)o..nct>je_I"-

DATE: l :2.- /t.,./1 2..- , 2012 

t I 

DATE: __ _,_/)...,...,/,__ • .:..../7_.__ __ , 2012 

THE CITY OF LOS ANGELES; LOS 

ANGELES WORLD AIRP S; LOS 

ANGELES BO RD 0 AIRPO T 

COMi\IIISSIO RS 

. Printed Name: 

"' . \)(lr ,, >c' 

-\'"•.. i 

Its:_\2-t\)Jv~·y ·f/£t.-tdlv~ --:.}/ty· t.·.'---'Cfl\ 

1 n_l 

t.)~V v·:,ili ( · l 

-Page 11-
EXHffiiTA 

RATES AND CHARGES FOR THE USE OF TERMINAL FACILITIES 

AT LOS ANGELES INTERNATIONAL AIRPORT 

PURSUANT TO THE 

LOS ANGELES INTERNATIONAL AIRPORT PASSENGER TERMINAL TARIFF, 

AS IT MAY BE AMENDED FROM TIME TO TIME 

The following rates and charges methodology for the use of passenger terminals (the 

"Terminals") at Los Angeles International Airport (the "Aimort") by Aeronautical Users subject 

to the Los Angeles International Airport Passenger Terminal Tariff(the "Tariff'); is established 

by the City of Los Angeles (the "City"), acting by and through the Board of Airport 

Commissioners (the "Board") of the Los Angeles World Airports ("LAW A''), under the City of 

Los Angeles City Charter and Administrative Code, §§ 630 et seq. 

Section 1. Definitions. As used in this document, the terms identified in this 

section shall have the meanings indicated unless the context clearly indicates otherwise. 

Additional words and phrases used in this document shall have the meanings set forth in 

the Tariff or, if not so set forth, shall have their usual and customary meaning. 

"AAAC" shall mean the Ah·iine Airport Affairs Committee. 

"Aeronautical User" shall mean an Airline or any other Person engaged in an activity that 

involves, makes possible or is required for the safety of, or is otherwise directly related to, the 

operation of aircraft and includes providers of services related directly and substantially to the 

movement of passengers, baggage, mail and cargo on the Airport, but does not include any 

govetnment or political subdivision thereof or a governmental agency. 

"Airline" shall mean an Air Canier or Foreign Air Canier as defined in 49 U.S. C. 

§§ 40102(a)(2) and (a)(21), respectively. 

"Capital Costs" shall mean all capital costs of the Airport, including the following: 

(a) Debt service (net ofPFC's) allocable to bond-funded Capital Improvements. 

(b) Debt service coverage allocated in accordance with stated bond covenant 

requirements (currently 1.25 for senior debt obligations and 1.15 for subordinate 

debt obligations). 

(c) Amortization allocable to Capital.Improveinents funded with airport revenue, 

based on the economic life for each Capital Improvement and calculated using an 

interest rate set to equal the average ail-in cost of Airport debt sold by LAW A 

during the calendar year when such Capital Improvement is put in service or, if no 

Airport debt was sold, set to equal comparable published average borrowing 

costs. 
"Capital hnprovement" shall mean any improvement or item or relat~d group of items 

acquired, purchased, leased or constructed to improve, maintain or develop the Airport, as well 

as any extraordinary or substantial expenditure whose object is to preserve, enhance or protect 

_ the Airport that, in accordance with generally accepted accounting principles consistently 

applied, is capitalized byLAW A. 

"Common Use Areas," previously referred to as "Joint Use Areas" under the Tariff, shall 

mean the space in any Terminal designated by the Executive Director be nsed in common by one 

or more Airlines or otherwise benefitting one or more Airlines for operations and include, 

without limitation, Common Use Holdrooms, Conunon Use Ticket Counters, Common Use 

Baggage Claim Areas and Common Use Outbound Baggage System Areas. 

"Common Use Baggage Claim Areas" shall mean the space in any Terminal (excluding 

the FIS Areas) designated by the Executive Director to be nsed in common with other Airlines 

for the delivery of inbound baggage to arriving passengers, including the baggage recheck areas 

and the areas where Common Use Baggage Claim Systems are located. 

"Common Use Baggage Claim System" shall mean equipment that delivers inbound 

baggage to aniving passengers. 

"Common Use Holdrooms" shall mean the space in any Tel1llinal designated by the 

Executive Director to be used in common with other Airlines for passenger holdrooms and gate 

areas. 

"Common Use Loading Bridge" shall mean a passenger loading bridge and related 

equipment owned by LAW A. 

"Conunon Use Outbound Baggage System" shall mean equipment that sot'ts outbound 

baggage for delivery to departing aircraft. 

"Common Use Outbound Baggage System Areas" shall mean the space in any Terminal 

designated by the Executive Director to be used in common with other Airlines for the sorting of 

outbound baggage for delivery to departing aircraft and incluaes the areas where Common Use 

Outbound Baggage Systems are located. 

"Common Use Ticket Counters" shall mean the space in any Terminal designated by the 

Executive Director to be used in common with other Airlines for ticket counters and associated 

queuing space. 

"Deplaned Domestic Passengers" shall mean the actual number of passengers, not 

including the flight crew, disembarking from a domestic flight at the Tetminals and shall include 

passengers clearing customs and immigration in the country that his or her flight originated from, 

disembarking from an international flight at the Terminals. 

2 
"Deplaned International Passengers" shall mean the actual number of'passengers, not 

including the flight crew or passengers clearing customs and immigration in the country that his 

or her flight originated from, disembarking from an international flight at the Terminals. 

"Enplaned Passengers" shall mean the actual number of passengers, not including ihe 

flight crew or intemational in-transit passengers, but including both originating and connecting 

passengers, embarking on a flight at the Terminals. · 

"Executive Director" shall mean the Executive Director of ihe Department of Airports of 

the City of Los Angeles, California, or his or her designee. 

"Fiscal Year" shall mean the twelve (12) month period beghming July 1 of any year and 

ending June 30 of the following year or any other period adopted by LAWA for its financial 

affairs. 

"FIS Areas," previously referred to as the "International Joint Use Areas" under the 

Tariff; shall mean the space in ihe Terminals designated by ihe Executive Director to be used in 

coinmon with other Airlines for federal inspection services (including sterile corridors, customs 

areas, baggage service areas, customs baggage claim areas, cashier areas, interline baggage 

areas, immigration inspection areas, storage areas, locker areas, federal inspection service swing 

areas, conference room areas and registration areas), offices for federal agencies, restrooms 

included in or adjacent to the foregoing areas, transit lounge space and oilier in transit facilities 

for international passengers. 

''New Rate Methodology" shall mean the rate methodology set fmth iu this document. 

"Operations and Maintenance Expenses," previously referred to as "Terminal Expenses" 

under the Tariff, shall mean the total operations and maintenance expenses of the Airport. 

"Passenger Facility Charges" or "PFC's" shall mean passenger facility charges remitted 

to LAWA under49 U.S.C. § 40117 and 14 C.F.R. Part 158 as they may be amended from time 

to time. 

"Person" shall mean a corporation, an association, a partnership, a limited· liability 

company, an organization, a ttust, a natural person, a government or political subdivision ihereof 

or a governmental agency. · 

"Public Area" shall mean sidewalks, concourses, corridors, lobbies, passageways, 

restrooms, elevators, escillators and other similar space made available byLAW A from time to 

time for use by passengers, LAW A and Airline employees and other members ofihe public, as 

designated by ihe Executive Director. 

"Rentable Area," previously referred to as "Measured Area" under the Tariff, shall mean 

any areas in the Tenninals that are available for use by Airlines, other Aeronautical Users, 

concessionaires or LAW A or other governmental users on an exclusive, common or preferential 

use basis, as designated by the Executive Director. Rentable Area does not include any areas 

that are located outside ihe Terminals nor does Rentable Area include any space (such as security 

3 
ch~ckpoints) used by federal governmental agencies (such as Customs and Bbrder Patrol or the 

Transportation Security Administration) or local law enforcement agencies to carry out their 

operations at the Airport. 

"Reserve Deposits" shall mean the amounts deposited to funds and accounts for 

operations and maintenance reserves, to satisfy debt service reserve requirements, and similar 

expense reserves under the te1ms of any applicable bond covenants or as requiTed by the Los 

Angeles City Charter. 

"Terminals" shall mean all of the airline passenger terminals at the Airport except for 

Termina14 unless and until all Ail" lines using Terminal4 are subject to the New Rate 

Methodology. 

"Terminal Airline Support Svstems" shall mean an information technology system, used 

to allocate terminal resources (gates, stands, ticket counters, baggage carousels, bag sortation 

piers, flight information displays, gate information displays, and public address systems) to assist 

Airlines with passenger processing. 

"Il!m" shall mean the active arrival and departure of an aircraft from a gate (including a 

remote gate) and may be measured in halves. The movement of an empty aircraft to or from a 

gate shall not constitute half a "Turn." 

Section 2. Calculation of Rate and Charees for Airlines. 

2.1. Generally .. 

2.1.1. An Airline using any space or equipment in tlie Terminals pursuant 

to the Tariff shall be subject to the rates and charges set forth in this Section 2. 

There are two kinds of rates and charges set forth in this Section: equalized 

charges for all of the Terminals (described in Sections 2.2 through 2.7 below) and 

Terminal Special Charges (described in Section 2.8 below), assessed for the use of 

certain space or equipment in certain Terminals, for the recovery of certain types of 

Capital Costs or Operations and Maintenance Expenses that are not incurred by 

LAWA in all of the Terminals and not recovered from the Airlines through the 

equalized rates and charges. In calculating the Terminal Buildings Requirement. 

the FIS Requirement and Temnnal Special Charges, as set forth below, LAW A 

shall exclude any cost (net of the cost of collection) that (a) has been reinlbursed or 

covered by government grants or PFC's, (b) has been reinlbursed or covered by 

any insurance recovery, condemnation prc;~ceeds or other third-party payment, or 

(c) has been reimbmsed or is required to be reimbursed to LAW A by an individual 

Airline under the Tarif,f in connection with projects undertaken byLAW A at the 

request and for the benefit of an individual Airline. Illustrative calculations 

displaying how rates and charges will be calculated under this methodology are 

attached as Exhibit A through Exhibit G-5. 

2.1.2. Airline Consultations on Proposed Rates and Charges. No later 

than November 1 of each year, the Executive Director shall provide each Airline 

4 
then currently using space at the Airport with a complete copy of the 'then proposed 

rates and charges, calculated in accordance with this Section 2, for the succeeding 

calendar year. The Executive Director shall, upon request by any such Airline, 

consult with such Airlines concerning the then proposed rates and charges. No 

later than December 1 of each year, the Executive Director shall make any 

revisions to the proposed rates and charges as the Executive Director detennines, 

in his or her sole discretion, to be wru1'anted as a result of consultation with the 

Airlines or otherwise, and shall provide written notice to each Airline then 

currently using space at the Airport of new rates and charges to be effective on 

January 1 of the following calendar year. A copy of such written notice shall be. 

filed with the secretary of the Board. 

2.2. Calculation of the Tenninal Buildini!S Rate. Each year LA WA shall 

calculate the estimated Terminal Buildings Rate for the next calendar year as follows: 

2.2.1. The Terminal Buildings Requirement shall be computed as the total 

of (i) the Unified Capital Requirement and (ii) the Operations and Maintenance 

Requirement. 

(a) Calculation of the Unified Capital Requirement. Each year 

LAW A shall calculate the Unified Capital Requirement by totaling all 

budgeted Capital Costs allocable to the Terminals (excluding the PIS 

Areas) for the following calendar year. 

(b) Calculation of Operations and Maintenance Requirement. 

Each year LAW A shall calculate the Operations and Maintenance 

Requirement by totaling the actual Operations and Maintenance Expenses 

and Reserve Deposits (if any) allocable to the Terminals (excluding the PIS 

Areas) for the immediately preceding Fiscal Year. 

The allocation method for Capital Costs and Operations and Maintenance 

Expenses is outlined in attached Appendix I. 

2.2.2. The estimated Terminal Buildings Rate shall then be calculated by 

dividing the Terminal Building Requirement by the estimated total amount of 

Rentable Area. LA WA may use the actoal runount of Rentable Area in the 

immediately preceding Fiscal Year in calculating the estimated Terminal Buildings 

Rate. 

2.3. Calculation of the FIS Rate. Each year LAW A shall calculate the estimated 

FIS Rate for the next calendar year as follows: 

2.3 .1. The estimated Gross FIS Requirement shall be computed as the total 

of (i) all budgeted Capital Costs allocable to the FIS Areas for the following 

calendar year and (ii) the actual Operations and Maintenance Expenses and 

5 
Reserve Deposits (if any) allocable to the FIS Areas for the immediai~ly preceding 

Fiscal Year. 

2.3 .2. From the estimated Gross FIS Requirement, LAW A shall deduct the 

amounts of any estimated revenue from the rental of space in. the PIS Are11s to 

governmental agencies to yield the Net FIS Requirement. 

2.3.3. The estimated FIS Rate shall then be calculated by dividing the Net 

FIS Requirement by fue estimated total annual number of Deplaned International 

Passengers. LAW A may use the actual number of Deplaned Intemational . 

Passengers in the immediately preceding Fiscal Year in calculating the estimated 

FIS Rate. 

2.4. Calculation of Common Use Holdroom Rate. Each year LAWA shall calculate 

the estimated Common Use Holdroom Rate for the next calendar year !IS follows:· 

2.4.1. The estimated Holdroom Requirement shall be computed as the product of 

the Terminal Buildings Rate and the total square footage of all Common Use Holdrooms 

in the Terminals. 

2.4.2. LA WA shall then calculate six separate Common Use Holdroom Rates for 

use of Common Use Holdrooms by the six different classes of aircraft shown in the table 

below. 

Aircraft Class 

1 2 3 4 5 6 

A380 747 A340 B757-300 B717 All others 

A330 B767 A318 having 100 

B777 B787 A3l9 seats or less 

A350 A320 

MD-11 A321 

IL-96 . MD (DC) All 

B737 

757-200 

6 
The charges for use of Common Use Holdrooms by aircraft within ea~h of .these classes 

shall bear the following relativities to each other: 

Relative Charge per Turn 

Class 1: 3.00x 

Class 2: 2.00x 

Class 3: !.SOx 

Class 4: l.25x 

Class 5: l.OOx 

Class 6: 0.75x 

For rate-setting purposes, the charges per Tum for each of these six classes of aircraft 

will be calculated. so that expected aggregate Common Use Holdroom charges equal the 

Common Use Holdroom Requirement. 

· 2.4.3. New Types of Aircraft. If any Airline begins to serve the Airport with 

types of arrcraft riot shown in the table in Section 2.4.2, LAW A shall provide written 

·notice ("New Aircraft Notice") to the AAAC to solicit a recommendation from the 

AAAC as to the proper classification of such new aircraft types for rate-setting purposes, 

If the AAAC wishes to make such a recommendation, it shall do so in writing within 

thirty (30) days following the New Aircraft Notice. LA WA shall consider any such 

recommendation and then, in its sole discretion, shall reasonably determine whether to 

(a) assign such new aircraft to a new class with a different Specified relativity or (b) . 

include it in one of the existing aircraft classes under Section 2.4.2. LAW A shall provide 

written notice to the AAAC of its determination of how such new aircraft will be 

classified for rate-setting purposes, and thereafter the calculatipus of relative charges per 

Turn under Section 2.42 shall reflect any such classification. 

2.5. Calculation of Common Use Baggage Claim System Rate. Each year 

LAW A shall calculate the estimated Common Use Baggage Claim System Rate for the 

next calendar year as follows: 

· 2.5.1. The estimated Common Use Baggage Claim Requirement shall be 

computed as the product of the Terminal Buildings Rate and the total square footage of 

all Common Use Baggage Claim Areas in the Terminals. 

2.5 .2. The estimated Common Use Baggage Claim System Rate shall then be 

calculated by dividing the Baggage Claim Requirement by the estimated total annual 

number ofDephined Domestic Passengers of Airlines using Common Use Baggage 

Claim Systems in any of the Terminals. LAWA may use the actual number of Deplaned 

Domestic Passengers of Airlines using Common Use Baggage Claim Systems in the 

immediately preceding Fiscal Year in calculating the estimated Common Use Baggage 

Claim Rate. 

7 
2.6. Calculation of Common Use Outbound Baggage System Ratl Each year LAW A 

·shall calculate the estimated Common Use Outbound Baggage System Rate for the next calendar 

year as follows: 

2.6.1, The estimated Common Use Outbound Baggage System Requirement 

shall be computed as the product of the Termioal Buildings Rate and the total square 

footage of all Common Use Outbound Baggage System Areas in the Terminals, less any 

credit for revenue generated by fees imposed under Section 2.6.3, 

2.6.2. The estimated Common Use Outbound Baggage System Rate sball then be 

calculated by.dividing the estimated Common Use Outbound Baggage System 

Requirement by the estimated total annual number of Enplaned Passengers of Airlines 

using the Common Use Outbound Baggage System Areas in all of the Terminals. 

LA WA may use the actual number of Enplaned Passengers of Airlines using the 

Common Use Outbound Baggage System Areas in the immediately preceding Fiscal 

Year in calculating the estimated Outbound Baggage System Rate. 

2.6.3. LAW A may also establish a reasonable fee to be charged to Airlines that 

use a portion of an outbound baggage system owned or leased by another Airline and pay 

a fee for such use to such other Airline and also use baggage make-up devices owned by 

· LAW A. The revenue, if any, generated by such a fee shall_be credited ~gains! the 

Common Use Outbound Baggage System Requirement calculated under Section 2,6; 1. 

2.7. Common Use Ticket Counter Rate. Each year LA WA shall calculate the 

estimated Common Use Ticket Counter Rate for all Terminals for the next calendar year as 

follows: 

2.7.1. The estimated Common Use Ticket Counter Requirement shall be 

computed as the product of the Termioal Buildings Rate and the total square footage of 

all of the Common Use Ticket Counter space in the Terminals. 

2.7.2. The estimated Common Use Ticket Counter Rate shall then be calculated 

by dividing the Common Use Ticket Counter Requirement by the estimated total annual 

number of Enplaned Passengers of Airlines using Common Use Ticket Counters. LA WA 

may use the actual number of Enplaned Passengers in the immediately preceding Fiscal 

Year in calculating the estimated Common Use Ticket Counter Rate. 

2.8. Terminal Special Charges. There are certain equipment and services that LA WA 

provides in some, but not all of the Terminals. Airtines using such .equipment or services in 

certain Terminals pursuant to the Tariff shall be subject to Termioal Special Charges as follows. 

Any Capital Costs or Operations and Maintenance Expenses that are included in the calculations 

ofTerminal Special Charges shall be excluded from the rates and charges calculated under 

Sections 2.2 through 2.7. 

8 

i 

! ! 

i 

. ; 

; 

l 

' i i 
2.8.1. Custodial Rates. Each year LA WA shall calculate esti'inated Custodial 

Rates for the next calendar year as follows: 

2.8.1.1. The Custodial Requirement shall be calculated by totaling 

the following from the immediately preceding Fiscal Year: 

(a) the total actual payments by. LAW A under service contracts 

for janitorial and cleaning services in all Terminals; and 

(b) the total actual cost to LAW A of providing its own 

janito,rial and cleaning services in all Terminals. 

2.8.1.2. The Custodial Requirement shall then be divided by the 

total square footage of all areas (whether Public Areas or Rental Areas) for which 

LA WA provides janitorial and cleaning services to derive the Average Custodial 

Rate. LAW A shall then calculate four separate Custodial Rates for use of 

Common Use Holdrooms, Common Use Ticket Counters, Outbound Baggage 

System Areas and Baggage Claim Areas, respectively, by (x) multiplying the total 

square footage of each such type of space in all Terminals by the Average 

Custodial Rate and then (y) dividing by the following factors: 

(a) for Common Use Holdrooms, Enplaned Passengers; 

(b) for Common Use Ticket Counters, Enplaned Passengers; 

(c) for Common Use Outbound Baggage System Areas, 

Enplaned Passengers; and 

(d) for Common Use Baggage Claim Areas, the total of 

Deplaned Domestic Passengers. 

In making these calculations, LAW A shall only consider the numbers of 

passengers using the Common Use facilities that are the subject of these Terminal 

Specific Charges and may use the actual numbers of such passengers in the 

immediately preceding Fiscal Year in calculating these rates, 

9 
2.8.2. Outbound Baggage System Maintenance Rate. Each year LA WA 

shall calculate the estimated Outbound Baggage System Maintenance Rate for the 

next calendar year as follows: 

2.8.2.1. The Outbound Baggage System Maintenance 

Requirement shall be calculated by totaling the following actual amounts 

from the previous Fiscal Year: 

(a) the total actual payments by LA WA under service contracts 

for maintaining and repairing Common Use Outbound Baggage Systems 

in all Terminals; and 

(b) the total actual cost to LAW A of maintenance and repair of 

the Common Use Outbound Baggage Systems in all Terminals. 

·' 2.8.2.2. The estimated Outbound Baggage System Maintenance 

Rate shall then be calculated by dividing the Outbound Baggage System 

Maintenance Requirement by the estimated total annual number of Enplaned 

Passengers of Airlines using the Common Use Outbound Baggage System in 

Terminals in which LA WA maintains and repairs the Common Use Outbound 

Baggage Systems. LA WA may use the actual numbers of such passengers in the 

immediately preceding Fiscal Year in calculating the estimated Outbound 

Baggage System Maintenance Rate. 

.. 2.8.3. Terminal Airline Support System Rate. Each year LAW A shall 

calculate the estimated Terminal Airline Support System Rate for the next calendar 

year as follows: 

2.8.3.1. The estimated Terminal Airline Support System 

Requirement shall be calculated by totaling (a) the prior Fiscal Year's 

Operations and Maintenance Expenses allocable to the Airline Support · 

System and (b) .all budgeted Capital Costs allocable to the Airline Support 

System and to be paid by LAW A for the next calendar year. 

2.8.3.2. The estimated Terminal Airline Suppott System Rate shall 

then be calculated by dividing the esthnated Terminal Airline Support System 

Requirement by the estimated total annual number of Enplaned Passengers of 

Airlines using the Terminal Airline Support System. LAW A may use the actual 

number ofEnplaned Passengers of Airlines using the Terminal Airline Support· 

System in the immediately preceding Fiscal Year in calculating the estimated 

Terminal Airline Support System Rate. 

10 
2.8.4. Common Use Loading Bridge Rate, Each year LAW A shall 

calculate the estimated Common Use Loading Bridge Capital Rate and the 

Common Use Loading Bridge O&M Rate for the use of Loading Bridges for the 

next calendar year as follows: 

2.8.4.1. The Average Common Use Loading Bridge Capital 

Requirement shall be calculated by ilividing all budgeted Capital Costs 

allocable to Common Use Loading Bridges for the following calendar year 

by the total number of Common Use Loading Bridges. 

2.8.4.2. The Average Common Use Loailing Bridge O&M 

Requirement for Common Use Loading Bridges maintained byLAW A shall be 

calculated by ilividing the prior Fiscal Year's Operations and Maintenance 

Expenses allocable to such Common Use Loading Bridges by the total number of 

Common Use Loading Bridges maintained by LA WA. 

2.8.4.3. The estimated Common Use Loading Bridge Capital Rate 

shall be calculated by multiplying the Average Common Use Loading Bridge 

Capital Requirement by the total number of Common Use Loailing Bridges and 

then dividing by the total annual number of Turns at all of the Common Use 

Loading Bridges, so that the capital charges for use of the Common Use Loading 

Bridges by each type of aircraft shall bear the relativities to each other set forth in 

Section 2.4.2. LAW A may use the actual number of Turns at Common Use 

Loading Bridges in the immediately preceding Fiscal Year in calculating the 

estimated Common Use Loading Bridge Capital Rate. 

2.8.4.4. The estimated Common Use Loailing Bridge O&M Rate 

for Common Use Loading Bridges maintained by LAWA shall be calculated by 

multiplying the Average Common Use Loading Bridge O&M Requirement by the 

total number of such Common Use Loading Bridges and then diviiling by the total 

annual number ofTums at all such Common Use Loading Bridges, so that the 

maintenance charges for use of such Common Use Loailing Bridges by each type 

of aircraft shall bear the relativities to each other set forth in Section 2.4.2. 

LAW A may use the actual number of Turns at such Common Use Loading 

Bridges in the immediately preceding Fiscal Year in calculating the estimated 

Common Use Loailing Bridge O&M Rate. 

2.8.5. Future Terminal Special Charges. The Executive Director, subject to 

Board approval, inay impose additional Terminal Special Charges in similar 

circumstances, where LAW A is providing certain specified services or equipment in 

some, but not all of the Tetminals; provided, however, that any such services or 

equipment were ftrst provided by LAWA after December 31, 2012. LA WA shall notuy 

and consult with the Airlines concerning any proposed new Tetminal Special Charges at 

least 60 days before LAW A submits any proposed new Terminal Special Charges for 

approval by the Board. 

11 
2.9. Mid-year Adjustments. If it appears to LAW A, on the basis ofinfmmation it is 

able to accumulate during the course of any calendar year, that the estimated expenses 

(excluding Operations and Maintenance Expenses and the costs referred to in Sections 2.8.1.1· 

and 2.8.2J) or projected levels of Airline activity it has used to calculate the rates and charges 

set forth in Section 2 are likely to vary significantly (higher or lower) from actual results, LAW A 

may malce adjustments to such rates and charges at mid-year or at such other time during the 

calendar year (a) as the need for such an adjustment becomes apparent to LAWA or (b) the 

variance between the estimated expenses or projected levels of Airline activity and actual results 

is expected to be ten percent (10%) or more. LAWA shall provide the AAAC with at least thirty 

(30) days advance written notice ("Mid-Year Adjustment Notice") of any adjustments to be 

made under this Section 2.9. The AAAC may, within fifteen (15) days of receipt of the MidYear Adjustment Notice, request a meeting with LAW A to review the information that LAW A 

used as the basis for an·adjustment under this Section 2.9 and if the AAAC does so, LA WA shall 

meet with the AAAC within fifteen (15) days of the AAAC's request. · 

2.1 0. Annual Adjustments-to-Actual. Within 180 days after the close of each calendar 

year, LAW A shall recalculate the rates and charges as set forth in this Section 2 on the basis of 

actual expenses (excluding Operations and Maintenance Expenses and the costs refened to in 

Sections 2.8.1.1 and 2.8.2.1), Airline activity and other factors ~ffecting the prescribed 

calculations and shall determine the amount of any overpayment (credit) or underpayment 

(deficit) due to or from each Airline. Any resulting credit will be issued to the Airline, and any 

resulting debit will be invoiced to and payable by the Airline, as prescribed in the Tariff. 

Section 3. Calculation of Rates and Charges for Aeronautical Users other 

than Airlines. An Aeronautical User using any space in the Terminals pursuant to the 

Tariff shall be subject to the Terminal Buildings Charge described in Section 2.2. 

12 
EXIDBITA 

Appendix 1 

Cost Allocation Method 

(1) · Description of Cost Centers. Cost centers at the Airport are those functions or physically. 

discrete areas that are used to account for costs incurred by LAWA to own (or otherwise 

provide), maintain, operate, construct, develop, and administer the Airport. There are two types 

of cost centers used to account for costs at the Airport: (a) direct cost centers, which are each 

related to a defined physical area of the Airport that serves a particular function, and (b) indirect 

cost centers, which are related to service functions that support the direct cost centers. The 

following are the direct and indirect cost centers used to account for both capital costs and . · 

operations and maintenance expenses at the Airport: 

Direct Cost Centers 

Terminals - the Te1minals cost center comprises the land and all passenger terminal buildings 

and other related and appurtenant facilities, whether owned, operated, or maintained by LAW A. 

Facilities include the passenger terminal buildings located in the central terminal area, passenger 

terminal buildings located outside the central terminal area, associated. concourses, holdrooms, . 

passenger tunnels, and all other facilities that are a part of the passenger terminal buildings. 

Airfield - the Airfield cost center comprises those portions of the Airport ( excludillg the aircraft 

aprons associated with the terminal, general aviation, cm·go, and aircraft maintenance facilities) 

providing for the landing, taking off, and taxiing of aircraft, including approach and turning 

zones, clear zones, navigation or other easements,' runways, a fully integrated taxiway system, 

runway aiid taxiway lights, and other appurtenances related to the aeronautical use of the Airport, 

including any property acquired for noise mitigation purposes. 

Apron - the Apron cost center comprises the land and paved areas primarily adjacent to 

passenger terminal buildings, but also includes remote parking areas that provide for the parking, 

loading, and unloading of passenger aircraft. The Apron cost center does not include aprons 

associated with general aviation, cargo, or aircraft maintenance facilities. 

Aviation • the Aviation cost center compl'ises the land and facilities related to air cargo, general 

aviation, fixed-base operations, aircraft fueling, aircraft maintenance, in-flight catering, and other 

aviation-related services. · 

Commercial - the Commercial cost center comprises the land and facilities not located in the 

Terminal cost centers ~d that are provided for nonacronautical commercial and industrial. 

activities, including public automobile parking; car rental service centers, golf courses, the 

Theme Building, and the Proud Bird restaurant. 
Indirect Cost Centers 

Access - the Access cost center includes the costs of facilities and services for on-Airport and 

off-Airport ground access for vehicles and pedestrians, including airside and landside. access, and. 

Airport access generally. It also includes the costs of increasing, preserving, or managing the 

capacity of the Airport's access facilities. 

General Administration - the General Administration cost center includes the general 

administrative and S!Jpport costs related to providing, maintaining, operating, and administering 

the Airport that cannot be directly allocated to other cost centers. · · 

(2) Allocation Methods. Expenses directly attributable to the Terminals, and indirect 

Administrative and Access cost center expenses are allocated to the Terminals as follows: 

(i) Wherever possible, expenses directly attributable to the Terminals are allocated to 

the Terminals. 

(ji) Expenses attributable to Airport administrative divisions are allocated to the 

Terminals cost center based on its proportion of total direct expenses. 

(iii) Expenses directly allocated to the Access cost center are allocated to· ·the 

Terminals cost center and all other direct cost centers on the basis of the ratio ofland area 

by cost center. 

14 
" 

Exhibit A 

TERMINAL BUILDINGS RATE 

Illustrative Calculation pursuant to the New Rate Methodology 

Los Angeles International Airport · 

Unified Capital Requirement (a) 

Gross debt service 

Less: PFC revenues 

Debt service 

Debt service coverage 

Amortization 

Unified Capital Requirement 

Calendar year 

Operations and Maintenance Requirement (b) 

Less: Termina14 cost requirement 

Terminal Buildings Requirement 

Divided by: Rentable Area [c) 

Terminal Buildings Rate (per square foot) 

Note: The results shown above are not projections. 

(a) See Section 2.2.1[a) of the New Rate Methodology. 

[b) See Section 2.,2.1[b) of the New Rate Methodology. 

[c) See Section 1 of the New Rate Methodology. 

(A] 

(B] 

(Cj 

ID=A+B+C] 

IE] 

[=D/E] 

Hypothetical 

~Year 

$83,400,000 

(52,600,000) 

$30,900,000 

7,700,000 

30,800,000 

$69,400,000 

221,700,000 

[33,950,000) 

$257,150,000 

2,070,000 

$124.23 

;;;;:;::=;;;;;;;;;;;;;;;;;;;;;;;;;:;;;;;;;; 
'' 

Exhibit B 

FJS RATE 

Jllustrative Calculation pursuant to the New Rate Methodology 

Los Angeles International Airport 

Capital Costs 

Gross debt service 

Less: PFC revenues 

Debt service 

Debt service coverage 

Amortization· 

Capital Costs 

Operations and Maintenance Expenses 

Gross FJS Requirement 

Calendar year 

Less: Rental revenue of space in FIS Areas from governmental agencies 

Net FIS Requirement (a) 

Divided by: Deplaned International Passengers (b) 

FIS Rate (per deplaned international passenger) 

Note: The results shown above are not projections. 

(a) See Section 2.3 of the New Rate Methodology. 

(b) See Section 1 of the New Rate Methodology. 

[A) 

[B] 

[C:oA+B] 

[D] 

[E=C+D] 

18 

{=E/8 

Hypothetical 

Year 

$36,400,000 

(9,400,000) 

$27,100,000 

6,800,000 

2,800,000 

$36,700,000 

39,700,000 

$76,400,000 

(100,000) 

$76,300,000 

7,300,000 

$10.45 

====== 
Exhibit C 

COMMON USE HOLDROOM RATE 

Illustrative Calculation pursuant to the New Rate Methodology 

Los Angeles International Airport 

Calendar year 

Terminal Buildings Rate (a) 

Times: Common Use Hold room Space (square feet) 

Hold room Requirement (b) 

Divided by: Estimated Turns (weighted by aircraft Class) (c) 

Common Use Hold room Rate (per full turn) 

Common Use Holdroom Rates (per full turn) (by aircraft class): (c) 

Common Use 

Class Holdroom Rate 

[A) 

1 $283.89 

2 $283.89 

3 $283.89 

4 $283.89 

5 $283.89 

6 $283.89 

Note: The results shown above are not projections. 

(a) See illustrative Exhibit A. 

(b). See Section 2.4.1 of the New Rate Methodology. 

(c) See Section 2.4.2 of the New Rate Methodology. 

Expected use of Common Use Holdrooms (by aircraft class) 

Class Illustrative turns 

1 1,500 

2 6,000 

3 14,800 

4 1,100 

5 74,500 

6 3,600 

101,500 

Relative charge 

per turn 

[B) 

3.00 

2.00 

1.50 

1.25 

1.00 

0.75 

Relative charge 

per turn 

3.00 

2;oo 

1.50 

1.25 

1.00 

0.75 

Hypothetical 

Year 

$124.23 

268,000 

$33,300,000 

117,300 

$283.89 

============ 

Weighted 

Common Use 

Holdroom Rate 

["'A"'BJ 

$851.67 

$567.78 

$425.84 

$354.86 

$283.89 

$212.92 

Illustrative turns 

(weighted) 

4,500 

12,000 

22,200 

1,400 

74,500 

2,700 

117,300 
'' 

Exhibit D 

COMMON USE BAGGAGE CLAIM SYSTEM RATE 

Illustrative Calculation pursuant to the New Rate Methodology 

Los Angeles International Airport 

Calendar year 

Non-Signatory Airline Terminal Buildings Rate (a) 

Multiplied by: Common Use Baggage Claim Areas (square feet) 

Common Use Baggage Claim System Requirement (b) 

Divided by: Deplaned Domestic Passengers 

Common Use Baggage Claim System Rate (per deplaned domestic passenger} 

Note: The results shown above are not projections. 

(a) See illustrative Exhibit A. 

(b) See Section 2.5.1 of the New Rate Methodology. 

Hypothetical 

Year 

$124.23 

76,000 

$9,441,000 

9,192,000 

$1.03 

========== 
,, 

Exhibit E 

COMMON USE OUTBOUND BAGGAGE SYSTEM RATE 

Illustrative Calculation pursuant to the New Rate Methodology 

Los Angeles International Airport 

Calendar year 

Non-Signatory Airline Terminal Buildings Rate (a) 

Multiplied by: Common Use Outbound Baggage System Areas (square feet) 

Common Use Outbound Baggage System Requirement (b) 

Less: Fees forTerminal6 common use bag make-up unit (c) 

Net Common Use Outbound Baggage System Requirement (c) 

Divided by: Enplaned Passengers 

Common Use Outbound Baggage System Rate {per enplaned passenger) 

Note: The results shown above are not projections. 

(a) See illustrative Exhibit A. 

(b) See Section 2.6.1 of the New Rate Methodology. 

(c) Pursuant to Section 2.6.3 of the New Rate Methodology. 

Hypothetical 

Year 

$124.23 

152,000 

$18,883,000 

(500,000) 

$18,383,000 

10,594,000 

$1.74 
'' 

Exhibit F 

COMMON USE TICKET COUNTER RATE 

Illustrative Calculation pursuant to the New Rate Methodology 

los Angeles International Airport 

Calendar year 

Non-Signatory Airline Terminal Buildings Rate (a) 

Multiplied by: Common Use Ticket Counter space (square feet) 

Common Use Ticket Counter Requirement (b) 

Divided by: Enplaned Passengers 

Common Use Ticket Counter Rate (per enplaned passenger)' 

Note: The results shown above are not projections, 

(a) See illustrative Exhibit A 

(b) See Section 2.7.1 of the New Rate Methodology. 

Hypothetical 

Year 

$124.23 

17,000 

$2,112,000 

5,606,000 

$0.38 

=========== 
Exhibit G-1 

CUSTODIAL RATES 

Illustrative Calculation pursuant to the Tariff 

los Aflgeles International Airport 

Calendar year 

CALCULATION OF THE AVERAGE CUSTODIAL RATE 

Payments by LAWA under service contracts 

Cost to LAWA of providing janitorial services 

Custodial Requirement (a) 

Divided by: Terminal Building space receiving LAWA Custodial (b) 

Average Custodial Rate 

CALCULATION OF THE CUSTODIAL RATES 

Common Use Areas 

Hold rooms 

Average Custodial Rate $20.26 

Space 2681000 

$S,428,000 

Passengers (c) 14,247,000 

Custodial Rate (per enpl./depl. passenger) $0.38 

Note: The results shown above are not projections. 

(a) See Section 2.8.1 of the New Rate Methodology. 

(b) Terminal Building space receiving LAWA Custodial: 

Common Use Holdrooms 

Common Use Ticket Counters 

Ticket 

Counters 

$20.26 

17,000 

$344,000 

51606,000 

$0.06 

Common Use Outbound Baggage System Areas 

Common Use Baggage Claim Areas 

Common Use Areas 

Public Areas 

OutboundBaggage 

System Areas 

$20.26 

1521000 

$3,079,000 

10,5941000 

$0.29 

Terminal Building space receiving LAWA Custodial 

(c) Only passengers on airlines using the specified Common Use Areas. 

Holdrooms: Enplaned passengers In Terminals 11 21 3 and TBIT. 

Hypothetical 

Year 

$3,88S,OOO 

31,683,000 

$3S,S68,000 

1,7S6,000 

$20.26 

========== 

Baggage Claim 

Areas 

$20.26 

76,000 

$1,5391000 

9,1921000 

$0.17 

Sq ft 

268,000 

17,000 

1S2,000 

76,000 

Sl3,000 

112431000 

1,7S6,000 

Ticket Counters: Enplaned passengers In Terminal2 (excluding Hawallan and Air Canada) and TBIT. 

Outbound Baggage ~ystem Areas: Enplaned passengers in Terminals 1, 2 and 3. 

Baggage Claim Areas: Deplaned passengers In Terminals 11 2 (non~FIS) and 3. 
•' 

Exhibit G-2 

OUTBOUND BAGGAGE SYSTEM MAINTENANCE RATE 

Illustrative Calculation pursuant to the Tariff 

Los Angeles International Airport 

calendar year 

Payments by lAW A under service contracts 

Cost to lAW A of providing maintenance services 

Outbound Baggage System Maintenance·Requirement (a) 

Divided by: Enplaned passengers (b) 

' 

Outbound Baggage System Maintenance Rate (per enpl. passenger) 

Note: The results shown above are not projections. 

(a) See Section 2.8.2 of the New Rate Methodology. 

Hypothetical 

Year 

$3,201,000 

$3,201,000 

10,594,000 

$0.30 

========= 

(b) Enplaned passengers for all Terminals with lAW A-maintained Outbound Baggage 

Systems (Tl, T2 and T3). 
•' 

Exhibit G-3 

TERMINAL AIRLINE SUPPORT SYSTEM RATE 

Illustrative Calculation pursuant to the Tariff 

Los Angeles International Airport 

Calendar year 

Payments by LAWA under service contracts 

Cost to LAWA of providing maintenance services 

Terminal Airline Support System Requirement (a) 

Divided by: Enplaned Passengers (b) 

Terminal Airline Support System Rate (per enplaned passenger) 

Note: The results shown above are not projections. 

To be calculated separately for each Terminal that has a LAW A-provided 

Airline Support System. 

(a) See Section 2.8.3 of the New Rate Methodology. 

(b) Enplaned passengers for all Terminals with LAW A-maintained Terminal Airline 

Support Systems (T3 and TBIT). 

Hypothetical 

Year 

$0 

2,166,000 

$2,166,000 

7,008,000 

$0.31 

:;:;::;:;::;:;,:::;;;::;::;;:;:;::;;:::;:;: 
Exhibit G-4 

LOADING BRIDGE RATE-- MAINTENANCE 

.Illustrative Calculation pursuant to the Tariff 

Los Angeles International Airport 

Calendar year 

LOADING BRIDGE RATE-- MAINTENANCE (a) 

O&M Expenses of LAW A-maintained loading bridges 

Divided by: Number of LAW A-maintained loading bridges (b) 

Loading Bridge Maintenance Charge (per bridge) (c) 

Divided by: Estimated annual turns (p~r bridge) (weighted) 

Loading Bridge Maintenance Rate (per full turn) (d) 

Loading Bridge Maintenance Rates (per full turn) (by aircraft class): (e) 

Loading 

Bridge 

Maintenance 

Class Rate 

[AI 

l $18.63 

2 $18.63 

3 $18.63 

4 $18.63 

5 $18.63 

6 $18.63 

Note: The results shown above are not projections. 

(a) See Section 2.8:4 of the New Rate Methodology .. 

Relative 

charge per 

turn 

[Bj 

3.00 

2.00 

1.50 

1.25 

1.00 

0.75 

(b) All bridges in Terminals 1, 2 and 3, and 6 bridges In Terminal6. 

(c) Per-bridge charge levied to airlines using preferential-use ho/drooms. 

(d) Per-turn rate levied to airlines using Common Use Holdrooms . 

Hypothetical 

Year 

$1,719,000 

43 

$40,000 

2,147 

$18.63 

Weighted 

loading 

Bridge Capital 

Rate 

[:=A"'B] 

$55.89 

$37.26 

$27.95 

$23.29 

$18.63 

$13.97 

. (e) Weighting by aircraft class matches the weighting of Common Use Hold room Rates. 

Exp~cted use of Common Use Holdrooms (by aircraft class): 

Illustrative 

Maintenance: Class turns 

1 400 

2 1,600 

3 5,400 

4 1,500 

5 75,200 

6 3,600 

87,700 

Divided by: Number of LAW A-maintained loading bridges 

Estimated annual turns (per bridge) (weighted) 

Relative Illustrative 

charge per 

turn 

3.00 

2.00 

1.50 

1.25 

1.00 

0.75 

turns 

(weighted) 

1,200 

3,200 

8,100 

1,900 

75,200 

2,700 

92,300 

43 

2,147 
Exhibit G-5 

LOADING BRIDGE RATE·· CAPITAL 

Illustrative Calculation pursuant to the Tariff · 

Los Angeles International Airport 

Calendar year 

LOADING BRIDG.E RATE·· CAPITAL (a) 

Capital costs of LAW A-owned loading bridges 

Divided by: Number of LAW A-owned loading bridges (b) 

Loading Bridge Capital Charge (per bridge) (c) 

Divided by: Estimated annual turns (per bridge) (weighted) 

Loading Bridge Capital Rate (per full turn) (d) 

Loading Bridge Capital Rates (perfull turn) (by aircraft class): (e) 

Loading Relative 

Bridge Capital 

Class Rate 

[A] 

1 $10.35 

2· $10.35 

3 $10.35 

4 $10.35 

5 $10.35 

6 $10.35 

Note: The results shown·above are ·not projections. 

(a) See Section 2.8.4 of the New Rate Methodology. 

charge per 

turn 

[BJ 

3.00 

2.00 

1.50 

1.25 

1.00 

0.75 

(b) All bridges in Terminals 1, 2, 3, 6 and TBIT (including remote gates). 

(c) Per-bridge charge levied to airlines using preferential-use holdrooms. 

(d) Per-turn rate levied to airlines using Common Use Holdrooms. 

Hypothetical 

Year 

$1,409,000 

86 

$16,000 

1,547 

$10.35 

Weighted 

Loading 

Bridge Capital 

Rate 

[=A*B} 

$31.05 

$20.70 

$15.53 

$12.94 

$10.35 

$7.76 

(e) Weighting by aircraft class matches the weighting of Common Use Holdroom Rates. 

Expected use of Common Use Hold rooms (by aircrafl-class): 

Illustrative 

Capital: Class turns 

1 1,500 

2 6,000 

3 14,800 

4 1,100 

5 85,900 

6 8,800 

118,100 

Divided by: Number of LAW A-maintained loading bridges 

Estimated annual turns(per bridge) (weighted) 

Relative Illustrative 

charge per 

turn 

3.00 

2.00 

1.50 

1.25 

.1.00 

0.75 

turns 

(weighted) 

4,500 

12,000 

22,200 

1,400 

85,900 

7,000 

133,000 

86 

1,547 
'' 

Exhibit B 

TERMINAL flll!LD!NGS RATE 

Illustrative Calcu!ation pursuant to the Rate Agreement 

Los Angeles fnternational Airport 

Unified Capital Requirement (a) 

Gross debt service 

Less: PFC revenues 

Debt service 

Debt service coverage 

Amortization 

Unified Capital Requirement 

Operations and Maintenance Requirement {b) 

Less: Terminal4 cost requirement 

Terminal Buildings Requirement 

Calendar year 

less: Tier One Terminal Buildings Revenue Sharing (c) 

Net Terminal Buildings Requirement 

Divided by: Rentable Area (d) 

Terminal Buildings Rate (afterTierOne Terminal Buildings Revenue Sharing) 

Signatory Transitional Phase-In (STP) discount 

Terminal Buildings Rate (per square foot) 

Note: The results shown above are not projections. 

(a) See Section 2.2.1(a) of the New Rate Methodology. 

{b) See Section 2.2.l(b) of the New Rate Methodology. 

(c) See Section 4.1(a) of the !\ate Agreement. 

(d) See Section 1 of the New Rate Methodology. 

· Hypothetica I 

Year 

$83,400,000 

(52,600,000) 

$30,900,000 

7,700,000 

30,800,000 

[A] $69,400,000 

[Bj . 221,700,000 

[C] (33,950,000) 

[D=A+B+CJ $257,200,000 

IEJ (800,000) 

[F=O+E] $256,400,000 

[G] 2,070,000 

[H=F/G] $123.86 

15% 

$105.28 

;;;::::;:;;::;=::;:;::;:;;;:;;;:;;;:::;:::; 
,, 

Exhibit C 

FIS RATE 

Illustrative Calculation pursuant to the Rate Agreement 

Los Angeles International Airport 

Capital Costs 

Gross debt service 

Less: PFC revenues 

Debt. service 

Debt service coverage 

Amortization 

Capital Costs 

Operations and Maintenance Expenses 

Gross FIS Requirement 

Calendar year 

Less: Rental revenue of space in FISAreas from governmental agencies 

Net FIS Requirement (a) 

Less: Tier One FIS Concession R~venue (b) 

Net FIS Requirement 

· Divided by: Deplaned International Passengers (c) 

FIS Rate (per deplaned international passenger) 

Note: The results shown above are not projections. · 

(a) See Section 2.3 of the New Rate Methodology. 

(b) See Section 4.2 of the Rate Agreement. 

(c) See Section 1 ofthe New Rate Methodology., . . ' . . . . 

Hypothetical 

Year 

-

$36,400,000 

(9,400,000) 

$27,100,000 

6,800,000 

2;800,000 

[Aj $36,700,000 

[Bj 39,700,000 

[C,A+B] $76,400,000 

IDl (100,000) ' 

[E=C+D] $76,300,000 

[F] (10,600,000) 

[G=E+F] $65,700,000 

[H] 7,300,000 

[•G/H] $9.00 

;;;;;:;;:;:,:;::;:::;;:;:;:;;;:;;:;;:;:;;::= 
Exhibit D 

COMMON USE HOLDROOM RATE 

Illustrative Calculation pursuant to the Rate Agreement 

Los Angeles International Airport 

Calendar year 

Signatory Airline Terminal Buildings Rate (a) 

Times: Common Use Hold room Space (square feet) 

Holdroom Requirement (b) 

Divided by: Estimated Turns (weighted by aircraft class) (c) 

Common Use Holdroom Rate (per full turn) 

Common Use Holdro.om Rates (per full turn) (by aircraft class): (c) 

Common Use 

Class Holdroom Rate 

(A) 

1 

2 

3 

4 

5 

6 

Note: The results shown above are not projections. 

(a} See illustrative Exhibit B. 

(b) See Section 2.4.1 of the New Rate Methodology. 

(c) See Section 2.4.2 of the New Rate Methodology. 

$240.58 

$240.58 

$240.58 

$240.58 

$240.58 

$240.58 

Expected use of Common Use Hold rooms (by aircraft class) 

Class Illustrative turns 

1 1,500 

2 6,000 

3 14,800 

4 1,100 

5 74,500 

6 3,600 

101,500 

Relative charge 

per turn 

(B} 

3.00 

2.00 

1.50 

1.25 

1.00 

0.75 

Relative charge 

per turn 

3.00 

2.00 

1.50 

1.25 

1.00 

0.75 

Hypothetical 

Year 

$105.28 

268,000 

$28,220,000 

117,300 

$240.58 

=====::;;===== 

Weighted 

Common Use 

Holdroom Rate 

(::::A*B] 

$721.74 

$481.16 

$360.87 

$300.73 

$240.58 

$180.44 

I II ustratlve turns 

(weighted) 

4,500 

12,000 

22,200 

1,400 

74,500 

2,700 

117,300 
" 

Exhibit E 

COMMON USE BAGGAGE ClAIM SYSTEM RATE 

Illustrative Calculation pursuant to the Rate Agreement 

Los Angeles International Airport 

Calendar year 

Signatory Airline Terminal Buildings Rate [a) 

Multiplied by: Common Use Baggage .Claim Areas (square feet) 

Common Use Baggage Claim System Requirement (b) 

Divided by: Deplaned Domestic Passengers 

Common Use Baggage Claim System Rate (per deplaned domestic passenger) 

Note: The results shown above are not projections. 

(a) See illustrativ·e Exhibit B. 

(b) See Section 2.5.1 of the New Rate Methodology. 

Hypothetical 

Year 

$105.28 

76,000 

$8,001,000 

9,192,000 

$0.87 

============ 
'' 

Exhibit F 

COMMON USE OUTBOUND BAGGAGE SYSTEM RATE 

Illustrative calculation pursuant to the Rate Agreement 

Los Angeles International Airport 

Calendar year 

Signatory Airline Terminal Buildings Rate. (a) 

Multiplied by: Common Use Outbound Baggage System Areas (square feet) 

Common Use Outbound Baggage System Requirement.(b) 

Less: Fees for Terminal 6 com.mon use bag make-up unit (c) 

Net Common Use Outbound Baggage System Requirement (c) 

Divided by: Enplaned Passengers 

Common Use Outbound Baggage System Rate (per enplane<! passenger) . 

Note: The _results shown above are not projections. 

(a) See illustrative Exhibit B. 

·(b) See Section 2.6.1 of the New Rate Methodology. 

(c) Pursuant to Section 2.6.3 of the New Rate Methodology. 

Hypothetical 

Year 

$105.28 

152,000 . 

. $16,003,000 

(500,000) 

$15,503,000 

10,594,000 

$1.46 

======= 
" 

Exhibit G 

COMMON USE TICKET COUNTER RATE 

Illustrative Calculation pursuant to the Rate Agreement 

Los Angeles International Airport 

·Calendar year 

Signatory Airline Terminal Buildings Rate (a). 

Multiplied by: Common Use Ticket Counter space (square feet) 

Common Use Ticket Counter Requirement (b) 

Divided by: Enplaned Passengers 

Common Use Ticket Counter Rate (per enplaned passenger) 

Note: The results shown above are not projections. 

(a) See illustratjve Exhibit B. 

(b) See Section· 2.7.1 of the New Rate Methodology. 

Hypothetical 

Year 

$105.28 

17,000 

$1,790,000 

5,606,000 

$0.32 

::;:::;:;;:;;;:;;;:;;;;:;;;;;=:::::=:::: 
'' 

Exhibit H 

CALCUlATION OF TIER ONE REVENUE SHARING 

Illustrative Calculation pursuant to the Rate Agreement 

Los Angeles International Airport 

Calendar year 

Hypothetical 

Share Year 

TERMINAL BUILDINGS 

Concession Revenues 

Less: FY 2011 revenues (a) 

Revenues available for Tier One 

Tier One Terminal Buildings Concession Revenues 

FIS 

F.IS Concessions (b) 

Tier One FIS Concession Revenues 

Note: Revenues generated in Terminal 4 are excluded. 

50% 

25% 

(a) Escalates at Los Angeles CPl. In 2011; the CPI was 2.70% 

(b) Includes duty free and foreign exchange. 

$70,800,000 

(69,200,000) 

$1,600,000 

$soo,oop 

$42,600,000 

$10,600,000 
Exhibit I 

DEPOSIT TO TRIF AND · 

TIER TWO REVENUE SHARING FUND DISTRIBUTIONS 

Illustrative Calculation pursuant to the Rate Agreement 

Los Angeles International Airport 

Calendar year 

Total Revenues In the Terminals 

Less: Debt service 

Less: Operations and Maintenance Expenses 

Less: Required Deposits 

Net Terminal Cash Flow 

TRIF Dep~sit 

NetTerminal Cash Flow Cap 

·Annual deposit to TRIF 

TRIF Balance 

TRIP Cap 

TRIF Balance 

Amount in excess of TRIF Cap 

Tier Two Revenue Sharing Deposit 

TlerTwo Revenue Sharing Distribution 

Airlirie (a) 

Airline 1 

Airline 2 

Airline 3 

Airline 4 

Airline 5 

Total terminalarea revenues 

$30,000,000 

20,000,000 

10,000,000 

5,000,000 

1,000,000 

$66,000,000 

Note: The results shown above are not projections. 

(a). Only for airlines signatory to the Rate Agreement. 

[A] 

[B] 

{C:=A<B, then A, otherwise B} 

[Dj 

[Ej 

[F=:E·D, If E >0] 

[SO%xF] 

Relative share of 

te'rminal-area revenues 

45.5% 

30.3% 

15.2% 

7.6% 

1.5% 

100.0% 

Hypothetical 

Year 

$500,000,000 

($58,000,000) 

(276,000,000) 

(2,100,000) 

(336,100,000) 

$163,900,000 

$125,000,000 

125,000,000 

$500,000,000 

520,000,000 

$20,000,000 

$10,000,000 

Tier Two Credits 

$4,500,000 

3,000,000 

1,500,000 

800,000 

200,000 

$10,000,000