The Greater Orlando Aviation Authority (GOAA), operator of Orlando International Airport (MCO), said this week it is considering reducing the scope of capital improvement projects and providing flexible relief options for airport concessionaires and rental car companies as it continues to adapt to the impact of the COVID-19 pandemic.
The airport authority board considered a number of additional measures including scaling back the scope of the South Terminal Complex construction from 19 gates to 15 gates, cutting the overall cost by $226 million. The South Terminal infrastructure upgrade project is currently at about 60 percent completion.
The board decided to offer a choice for in-terminal concessionaires of either a limited deferral or a waiver of Minimum Annual Concession Fees (MACF) for three months, contingent on a number of conditions including with complying with CDC and other sanitation guidelines.
The board also heard that rental car companies will be granted a waiver of the Annual Privilege Fee for the months of May, June and July, 2020, in exchange for releasing the Authority of certain obligations, airlines were offered to defer specific fees for an additional 60 days.
“We are in a very challenging situation,” said Phil Brown, CEO of the aviation authority. “It is our responsibility to balance the interest of airlines, concessions and other business partners with the need for fiscal responsibility and solvency. It comes down to the management of cash for the sustainability of Orlando International Airport and the preservation of a vital asset for the community’s development and future.”
The aviation authority had previously implemented several actions in response to COVID-19, including a reduction of the FY2020 budget by $18.4 million; cutting $28.6 million in deferred renewal and replacement projects; and offering airlines, concessions and rental car companies the option to defer certain months’ fees for an initial 30 days