ORH Deal w/ Allegiant

Allegiant, the city and Massport were scheduled to sign a five-year agreement yesterday, an incentive-laden contract designed to encourage Allegiant’s long-term commitment to Central Massachusetts, said Assistant City Manager Julie A. Jacobson.

The contract was not available yesterday, but Ms. Jacobson said the agreement generally calls for a $5.75 charge per person, a rate calculated from passenger load, landings and fuel flowage fees, she said. The city has estimated Allegiant would pay $143,750 in revenues if the airline transports about 25,000 passengers a year, she said. As more passengers travel, the city would receive added revenues, she said. The airline did not seek any discounts on parking fees at the airport.

The city will also aid Allegiant by using money from a $442,615 marketing grant received in August 2004 from the federal Department of Transportation. The city will match up to $50,000 in marketing expenses during Allegiant’s first three months, Ms. Jacobson said. For the rest of the first year, the city will match up to $10,000 a month in marketing expenses.