Los Angeles World Airports will transfer ownership of LA/Ontario International (ONT) to the Ontario International Airport Authority, a victory for the city of Ontario, located about 40 miles east of Los Angeles, and surrounding communities. The deal, which includes initial payments of $30 million to LAWA and the transfer of another $40 million from ONT’s unrestricted cash accounts into other LAWA non-ONT accounts, comes after several years of litigation surrounding ownership of the airport.
In addition to the initial cash payments, no later than five years after the date of transfer the city of Ontario and the Ontario International Airport Authority will pay an additional sum of $50 million, followed by another additional sum of $70 million within 10 years, to the city of Los Angeles for the benefit of LAWA. In return, LAWA will relinquish all rights to the ownership and operation of ONT.
The deal announced Thursday also will provide job protection for the airport’s current employees. The agreement is subject to approvals by the Los Angeles Board of Airport Commissioners, Los Angeles City Council, Ontario City Council, the OIAA and the Federal Aviation Administration.
“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,” said Los Angeles Mayor Eric Garcetti. “This agreement resulted from hard work and courage on both sides of the table. I have supported the transfer of ONT to local control since my first day in office and I am thrilled that we can stop litigation and focus on a partnership that expands Southern California’s commitment to superior air travel.
“As we continue our revitalization of LAX to make it a world-class airport befitting our global city, we are equally committed to the excellence of Ontario in serving its own regional customer base,” he added.
Ontario Mayor Pro Tem Alan Wapner, who also serves at OIAA president, praised the regional cooperation exerted to avert a lawsuit.
“This action will help ensure that Southern California has the airport capacity to meet the long-term demand for air travel and restore the region’s most important economic and jobs engine,” he said.
Representatives of both cities said the agreement precludes the need for further litigation between the cities. A jury trial had been scheduled for Aug. 17.
The city of Ontario filed a lawsuit in June 2013 in an effort to regain control of ONT. Claiming mismanagement, conflicts of interest and agreement violations, Ontario and other Inland Empire officials sought the cancelation of a 1967 agreement that transferred operational responsibility for ONT to Los Angeles. Ownership of the airport was transferred to LAWA in 1985 but was conditional on LAWA making concerted efforts to attract airlines to the airport.
ONT had a modest increase in passengers in 2014 but the total was still far shy of the airport’s peak year in 2005. Total passengers in 2014 increased slightly to 4.13 million after dropping below the 4 million market the previous year for the first time in a decade. The 2014 figure was still more than 3 million passengers fewer than the 7.21 million passengers served in 2005.
The Ontario International Airport Authority was formed in 2012 as the city of Ontario put its efforts to regain control of the airport into high gear.
