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    Airport Authority Board passes FY 2017 budget
    Monday, May 16, 2016 Airport Authority Board passes FY 2017 budget

    MEMPHIS, Tenn. (May 12, 2016) – The Memphis-Shelby County Airport Authority (MSCAA) Board of Commissioners approved a new budget for fiscal year 2017 (July 1, 2016 through June 30, 2017) at the board’s monthly meeting on Thursday, May 12. 

    The $121.1 million Operations and Maintenance (O&M) budget sets the fees and charges that the airlines pay to the Airport Authority, and also establishes spending authority for the MSCAA staff. The budget does not include construction project expenditures. The MSCAA budget was unanimously supported by the Memphis International Airport’s airline committee partners and approved by the Board’s Finance and Administration Committee.

    The most significant highlights in the budget are a 19.9 percent decrease in the proposed terminal rates and charges, with a $92.98 per square foot rate compared to $116.07 per square foot in FY 2016. Terminal rental fees are determined by dividing the terminal’s operating cost by the total rented space, and the fees are paid by the airlines, vendors and other tenants. Landing fees are essentially flat, at $1.2662 per 1,000 lbs. of landed weight compared to last year’s rate of $1.2688. The decrease in terminal rates is due to a slight increase in rented space and lower terminal operating costs. Terminal rent and landing fees comprise about four percent of airlines’ overall operating costs and do not have a significant effect on airfares. 

    "The Airport Authority has worked diligently to maximize revenue, control costs, and reduce debt, and this budget accomplishes all of these goals,” said Scott Brockman, President and CEO of MSCAA. “We are especially excited that we were able to lower terminal operating costs for our tenant partners this fiscal year.”

    Highlights of the FY 2017 MSCAA budget:

    •  Total revenues/other sources: $121,104,700
    •  Total expenses, capital outlay, debt service, and debt service coverage: $121,104,700
    •  Landing fees: $1.2662/thousand lbs., down slightly from $1.2688 last year 
    •  Terminal square foot rate:$92.98, down from $116.07 last year

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