A resolution approving a proposed Agreement between the City and County of Denver and Norwegian Air Shuttle ASA concerning an operational air service development incentive at Denver International Airport. Approves a contract with Norwegian Air Shuttle ASA for an operational air service development incentive in the amount of $4 million and through 4-8-20 for its air service to Paris, France from Denver International Airport (201738751). The last regularly scheduled Council meeting within the 30-day review period is on 6-25-18. The Committee approved filing this item at its meeting on 5-30-18.
I will do a quick recap under resolutions. Councilman Flynn, looks like you have called out Resolutions six, ten and 11 for questions and comments. All right. Okay. Under bills for introduction, no item has been caught out under bills for final consideration. No items have been caught out and under pending. Nothing's been caught out. Madam Secretary, would you please put six? Ten. Go ahead, Councilman. Ask your question. Thank you, Mr. President. Angela, are you going to. Angela, Kasey is from the airport, is going to address this. We had some email exchanges last night over this, and I did get most of my answers, but I wanted to do this briefly in public so that folks could understand Norwegian Air is conducting this Denver to Paris service , and they just started about a month or so ago. So I came in April, in April, and we have an agreement with them. This is the agreement we have with them, the incentive for having initiated that service. And one thing I want to make get clear is am I correct in when airlines begin a service to a new market that is not currently served, typically the airport will engage in an incentive program to to seed that service. Is that correct? Yes, that's it. So this is not an unusual thing. What's unusual about this situation, though, is that after they started service, they have they announced yet that they're reducing service? I believe so. They have it now. Okay. Norwegian is not going to conduct year round service now. They've decided to do only seven months of the year. My question last night and what I want to get on the floor here is that this agreement is reduces the total number of payments geared to the amount of service. So by eliminating five months of the year and that's I think from late October through early March when they will not fly, when they found little less demand for travel between directly between Denver and Paris, there is no reimbursement. So the $4 million that is complicate comp company contemplated so I generated myself is won't be paid if they only conduct seven months of service. That's correct. And in fact, it's about $30 per employment. Rate per person rate. Per person on the plane. Okay. And then the companion resolution 611 is a marketing agreement. And that is also a standard action that the airport takes for any airline to conduct, say, service to a new market. And that is a straight reimbursement over their promotional materials.