Sanford Airport Authority Approves Deal -- TBI US to Operate Orlando Sanford Airport's Domestic Terminal
Dateline: August 30, 1999
The Sanford Airport Authority today approved the creation of a memorandum of understanding that defines the terms for TBI US to operate, manage and develop the domestic airline terminal facilities at the Orlando Sanford International Airport.
TBI US is the parent company of Orlando Sanford International, Inc., the company currently operating Orlando Sanford's international passenger and cargo terminal.
As part of the agreement, TBI US will pay $10 million in consideration for the 30-year management contract, against the $25 million cost of the planned domestic terminal expansion project. $7.5 million will be paid up front and applied directly towards construction costs. The remaining $2.5 million will be spread evenly over the first five years of the agreement in the form of $500,000 annual payments. The $500,000 annual revenue stream will be used by the Airport Authority as local matching funds for airfield capital requirements which are eligible for FAA and FDOT grant funding. This arrangement will benefit all users of the airport.
Mayor Larry Dale, who has been a strong proponent of the Orlando Sanford Airport, welcomes the new arrangement. "This unique public/private partnership is going to serve as a model for the entire nation to follow. Our airport is one of the first in the country to have such an arrangement and I'm looking forward to building on the success we have realized from our partnership so far," Mayor Dale said.
According to TBI's Chief Executive Officer, Keith Brooks, TBI has been interested in making this additional investment in OSA for quite some time. "We are investing in the facilities at Orlando Sanford Airport because we believe there is enormous potential for future development at the airport. This development will not only add to the value of the holdings at TBI, but it will also increase the overall value of the airport for the entire Sanford community," Brooks said.
"We are very excited about the approval of this deal," said Larry Gouldthorpe, President and Managing Director of Orlando Sanford International, Inc. "It brings us closer to making the expansion of the domestic terminal a reality, and it gives us the opportunity to provide this community with the airport facilities it needs to sufficiently accommodate its growth," Gouldthorpe added.
The expansion of OSA's domestic terminal is expected to boost domestic service, attract new aviation tenants, and allow OSA to handle over-flow traffic from the international terminal. The expanded terminal will feature second level boarding for up to seven flights at a time and handle up to 3 million passengers annually. Construction will begin around the first of January 2000 resulting in availability of the first wide body gate position by June 1, 2000 and total completion by December, 2000.
Airport officials look forward to taking advantage of this new partnership. "This partnership provides excellent expansion opportunities," said Victor White, Executive Director of Orlando Sanford Airport. "TBI's investment will help us manage the incredible growth we have experienced in recent years and will bring our airport to a new level as a service provider. We think it will be a win-win situation for everyone involved," White added.
Airport Authority Board Chairman, Kenneth W. Wright said, "This unprecedented agreement ensures that Orlando Sanford International Airport will be well positioned to maintain its forward momentum and to meet the air service challenges in the new millennium."
TBI US is an American subsidiary of TBI plc, a United Kingdom based airport privatization company which own and operates airports in the UK and Sweden. TBI's involvement at Orlando Sanford Airport began in May 1997 when Orlando Sanford International Inc. was formed to manage, operate and develop the international passenger complex on behalf of Sanford Airport Authority.
EDITOR'S NOTE: TBI US is an American Subsidiary of TBI plc, a UK based airport privatization company which owns and operates airports in the UK and Sweden. TBI plc has recently announced plans to acquire US based Airport Group International (AGI), another large airport privatization company which has airport management contracts and equity in 29 airports around the world.
TBI's involvement at Orlando Sanford Airport began in May, 1997 when Orlando Sanford International Inc. was formed to manage, operate and develop the International passenger complex on behalf of the Sanford Airport Authority. Since that time, the airport has undergone tremendous growth, handling 1.2 million international passengers in 1998.
Orlando Sanford International Airport is one of the busiest International airports in the nation and is an alternate gateway to central Florida's large visitor market. It features unique time saving design features as well as some of the lowest operating costs in the industry.
January 21, 2000:
Airport Breaks Ground on Terminal Expansion Program
October 26, 1999:
October 01, 1999:
August 30, 1999:
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