Ontario Airport: Deal struck to return airport to local control

Los Angeles Mayor Eric Garcetti announces an agreement to transfer ownership of the LA/Ontario global Airport to a local authority during a press conference, Thursday, August 6, 2015, at the LA/Ontario worldwide Airport in Ontario, Calif. The tentative deal disclosed by the mayors of the two cities calls for Ontario to pay Los Angeles World Airports $190 million over 10 years to reimburse it for the cost of running and improving the airport located 35 miles east of downtown Los Angeles.

The Inland Empire city allowed Los Angeles to operate the airport beginning in 1967 and handed over ownership in 1985 on the condition that L.A. officials do their best to attract airlines to the facility.

“Together, we’ve reached a deal that will benefit everyone: Inland Empire residents, Angelenos, LAWA, the Ontario Airport, and the dedicated employees who work at our airports”, Garcetti said. The Ontario global Airport Authority also will take over airport debts, making the deal worth about $250 million.

The Board of Airport Commissioners for Los Angeles World Airports is meeting Thursday morning in closed session to discuss the litigation with Ontario.

Gercetti and Wapner issued a statement at the press conference saying that L.A. and Los Angeles World Airports (LAWA) will be reimbursed for the investment they’ve made in the airport and that the airport’s current employees will be protected, according to the release.

In February 2013, a report prepared for Los Angeles County’s chief executive concluded that the airport department had made only “token efforts” to comply with the settlement and missed opportunities to rebuild service at Ontario worldwide.

“Getting the airport back means another economic engine for the City of Ontario”, Ontario Mayor Paul Leon said.

The plaintiffs alleged breach of contract and breach of fiduciary duty against LAWA, which maintained there was no evidence of a failure to faithfully manage the facility.

Once ownership is transferred, the airport will be operated by the Ontario worldwide Airport Authority, formed under a joint-powers agreement between the city of Ontario and San Bernardino County. He represents the area around the airport.

The OIAA commissioned a study indicating that, without steps to increase the airport’s visibility through general promotional campaigns and direct marketing to airlines, the field’s future prospects will continue to dim.

Between 2007 and 2013, passenger loads at the airport fell 40 percent, according to the study. However, the trend reversed last year, when passenger traffic expanded about 3 percent, figures showed.

The airport operator denied it was attempting to reduce Ontario’s business in favor of LAX. LAWA noted that flights were added at the airport in 2013, and attributed other reported declines to airlines using smaller aircraft on scheduled routes, accounting for reductions in available seats.

Since his election in 2012, Garcetti has been vocal about returning local control of the airport for a fair price.

In April, a judge in Riverside rejected a motion by the city of Los Angeles to have Ontario’s lawsuit dismissed. A trial was set to begin this month.