Concessionaire partners at Los Angeles International Airport (LAX) will pay percentage rent rather than a minimum annual guarantee (MAG) from April 1 through June 30 as a result of passenger traffic declines due to COVID-19.
Those percentage rents can also be deferred until July 1 through December 31 of this year in equal monthly installments, according to a resolution passed Thursday by the Los Angeles World Airports (LAWA) Board of Airport Commissioners.
A report presented last week to the board, which deferred the vote until Thursday, indicated that traffic for the first week of April was down roughly 95 percent compared with the previous year. While at least one concession is open in each terminal, more than two-thirds were closed, as of April 9.
The board also agreed Thursday to revise payment terms for non-exclusive license agreements for non-concessionaire rental car services to establish a percentage rent of 10 percent of gross revenues and allow for payment of the lower of percentage rents or licensee fees from April 1 through June 30.
Last week, the board voted to implement a temporary passenger airline relief program that eligible air carriers subject to LAX’s passenger terminal tariff can apply for that would defer the payment of terminal use fees and suspend gate utilization calculations and/or requirements.
